Chambersburg Office sales meeting regarding dealing with commission objections.

1. Tuesday,
May 20, 2014
CHAMBERSBURG SALES
MEETING

2. Carolyn Mann
Territory Manager
HSA HOME WARRANTY UPDATE

3. Don Clawson
AFFILIATED SERVICES UPDATE
Teri Eyler

4. REALTORS® CONTENT RESOURCE
http://members.houselogic.com/start/

5. CLIENT SATISFACTION SURVEYS
Congratulations to:
• Helen Meyers
• Ron Umbrell

6. RECOGNITION

7. TRANSITION UPDATES

8. TRANSITION UPDATES
• Signage
 Installed on all listings on the changeover date
 Panels will be swapped out – riders will remain intact
 Agent will have to install signs on listings taken after June 2nd
 Directionals available to install by agent
• Training for new and improved programs and services
 Watch for sign-up sheet

9. TRANSITION UPDATES
• Transition checklist
 Social media revisions
 Signatures for Zillow, Trulia, REALTOR.com, etc.
 OSA
 PREA eCards
 Admaster
 Logos

10. THE COMMISSION-ECTOMY

11. WHAT ARE YOU WORTH?
If you can’t clearly articulate how
you bring value to the
transaction, why do you expect
the seller to pay a full
commission?

12. THE CRITICAL ROLE OF THE REALTOR®
• Identifies 230 tasks that an agent
performs for a seller in a ‘typical’
transaction
• Doesn’t include the unexpected extras
that Homesale agents perform for
their clients
• Doesn’t include tasks in complex
transactions like Short Sales

13. All commissions charged by
real estate firms are
negotiable between parties.
Any reference to actual
commission amounts in this
presentation are Homesale
policies.
DISCLOSURE

14. HANDLING THE COMMISSION OBJECTION
1. Don’t ignore the white elephant in the room

15. HANDLING THE COMMISSION OBJECTION
2. If they object – they’re interested

16. HANDLING THE COMMISSION OBJECTION
3. Rehearse and practice
%

17. HANDLING THE COMMISSION OBJECTION
4. Don’t take it personally

18. COMPANY POLICY ON COMMISSIONS
Type of Listing
Residential (resale)
Residential (new homes)
%
6%
5%
Minimum
$2,600
$2,600
Any other terms must be approved prior to taking the listing. See
the company’s Policy & Procedure Manual in TeamHomesale

19. “Mr. Seller, this is one of the most common
questions we get.”
“Once I’ve seen your property, discussed
Homesale’s marketing plan and how the market
conditions are in your area, we can discuss what
it would take to sell your home and the
marketing fee.”
WHAT IS YOUR ‘STANDARD’ COMMISSION?

20. “All commissions
are negotiable.”
NEVER SAY . . .

21. “Mr. Seller, I can appreciate you asking but I don’t make adjustments
to my marketing fee.”
- Sometimes the best response is also the simplest -
BE DIRECT

22. “The market is
really moving right
now. We wanted to
know if you would
list it for 5%?”
MARKET CONDITIONS OBJECTION
“Things are really
tight right now.
We wanted to
know if you would
list it for 5%?”
When is the market perfect?

23. “Mr. Seller, I understand how tight things are right
now. I know that everyone in this economy is
counting dollars and cents; however, I am no
different. With current market conditions, shrunken
buyer pool, significantly longer days on market and
adjustments to sales prices, my commission has
already been adjusted due to the market and it is not
feasible to offer the service I do for my clients at a
reduced commission.”
IN A DOWN MARKET

24. “Mr. Seller, we are in a highly competitive market
right now. If I take your listing at ___% versus ___%
I would only be offering a co-broke commission of
___% which would appear in the MLS. If you made
your living selling houses and you had the
opportunity to show a home with a ___% co-broke
fee or one with ___%, which one would you show
first? I don’t want to put you at a disadvantage in
the marketplace.”
IN AN UP MARKET

25. “Mr. Seller, I can appreciate you
asking me to reduce my fee;
however, I want to clarify
something for you. You’re asking
me to take a ___% reduction in
earnings. If your employer came to
you today and said, ‘We’re cutting
your pay ___%’, how would you
feel about doing your job?”
REDUCTION IN PAY

26. “Mr. Seller, I can understand how you feel.
During the course of most transactions,
buyers will see the compensation that is
being offered co-broke agents and if they
see you are paying less in commission they
are more likely to offer less on your
property knowing that you’re not paying a
full commission on the property to start
out with.”
HAVING YOUR CAKE AND EATING IT TOO

27. “Mr. Seller, our marketing plan strives to get you
moved in the least amount of time with the most
money in your pocket. To offer these services
requires that we charge a fair commission. If your
home lingers on the market because of a less than
adequate marketing plan, you’ll actually lose money.
If we add up your mortgage payments, utility bills,
taxes and insurance for ___ months I think you’ll see
that my commission is well worth it.”
TIME IS MONEY

28. “Mr. Seller, I understand that ________ told you
they would market your home for ___%. When you
asked them to reduce their commission, how long
did it take before they told you they would do it for
less? (wait) So they volunteered to do it without
much discussion at all? (wait) Do you want an agent
who is going to negotiate hard to get you every last
dollar for your largest investment or one that will
take whatever comes along?”
ANOTHER AGENT SAID THEY WOULD TAKE . . .

29. It is very important that you review with the seller who determines
the price of a home up front.
WHO DETERMINES VALUE OF HOME?

30. “Mr. Seller, I can understand that you want
me to reduce my commission. Please
understand that what I receive in this
transaction is already being reduced because
the price is coming down. In addition, the
longer your home is on the market, the more
we are spending on getting it SOLD so my
expenses are actually increasing not
decreasing.”
REDUCE PRICE - - > REDUCE COMMISSION

31. “Mr. Seller, I can appreciate that you want me to reduce my
commission; however, you agreed up front that you would pay my
commission if I brought you a ready, willing and able buyer to
purchase your home. This offer is within the range of what I told you
initially we could probably expect for your home.”
MAKE THE DEAL WORK

32. “Mr. Seller, these certainly are a lot of unanticipated
repairs; however, my commission had nothing to do with
the repairs that need to be done to your home to
complete this sale. If you decide to throw in this
transaction and put your home on the market again
you’re now going to have to disclose these problems in
the Seller’s Disclosure Statement and more than likely
you will not find another buyer that is willing to pay as
much for your home.”
UNANTICIPATED REPAIRS

33. LOOK AT THE BIG PICTURE
If the honeymoon isn’t going very well, chances are the marriage isn’t
going to be much better

34. PROPERTY / NEEDS EXCHANGE

35. BH DAY - - - WEDNESDAY, JUNE 4TH
• Breakfast will be served from 8:30-10:00
AM by Chef Tom
• Pick-up your Berkshire Hathaway
HomeServices goodie bag
 Business cards
 Name badge
 Name riders
 Assorted ‘stuff’