.

Commission rates are under fire and on both sides of the transaction.

And you need to be prepared with strategies to defeat that effort., this one, by Jay Thompson, one of Inman’s top writers. His weekly Inman column publishes every Wednesday.

Get the Lowest Interest Rate, Fees, and Fastest Service
YouTube – Straight Talk Lending – Daniel Dobbs

Follow him on Facebook, Instagram and Twitter. He holds an active Arizona broker’s license with eXp Realty.

Editor’s Note: The settlement Jay alludes to (below), is going to really hurt the “big box” brokerages, whose business/commission model is “OFTEN” bloated by large franchise fees and management salaries.

If you are considering making a brokerage change, the 1st quarter of the year (when pipelines are typically depleted and listing agreements are expiring) and is the best time to begin the interviewing process; and before the NAR settlement is finalized.

Inman: 7 things NOT to say

when defending your commission

Commission objections have been around forever, and they’re likely to increase in today’s world of consumer knowledge and behavior.

There’s “commission compression”.

There’s the DOJ/NAR lawsuit and proposed settlement.

Then there are the “discount brokerages.”

Throw in the sometimes dreaded and often maligned tech companies and “disrupters,” and it seems like someone is always out to carve a slice of the real estate commission pie. 

Last week, Carl Medford penned a great piece, Defend your commission! 3 steps for showing sellers you’re worth it.

If you don’t understand and can’t effectively communicate your unique value proposition, you need to get busy.

Just search Inman News for “commission objection” and you will find a lifetime of reading.

You can learn from how others handle objections.  You can also learn from what NOT TO DO.

As I’ve perused the conversations about dealing with commission objections over the years, the same things tend to pop up over and over.

Agents tend to say the easy things to say. On the surface, they feel like solid arguments.

Upon deeper consideration, they are really best left unsaid.

1. ‘My services to buyers are free!’

Let’s not ignore the fact that both the buyer and the seller feel like they are paying (because they are).

One thing you best not ignore, whether you like it or not, is the proclamation that “buyer services are free” is going away as soon as the DOJ/NAR lawsuit settlement is finalized in early 2021.

2. ‘My broker and the IRS get a lot of that money!’

This is probably the phrase that’s repeated most often. Guess what?

The consumer doesn’t care. Do you know who else pays taxes? The person you’re talking to, trying to justify your commission.

While they can relate to the pain, you’ll get no sympathy from your fellow taxpayer.

3. ‘Sure, if you put me on the title’

Not only is it absurd, it shows you have terrible math skills. Stop saying it.

4. Blame your broker

Take the easy way out — blame your broker. “It’s my broker’s commission (truth), and they won’t let me discount it.” (Maybe true. Maybe not.)

When I ran a brokerage, I encouraged my agents to “blame me” if they got into a sticky situation, and of course I had their back.

Hopefully, your broker has yours too. Most do, some do not. Before tossing this line out, you best know exactly where (your broker) stand on commission rebates.

5. ‘It’s the MLS’s fault. Or Zillow’s. Or Redfin’s. Or NAR’s

More excuses, more passing the blame. No one else outside the possible exception of your broker sets your commission rate.

Specious arguments don’t sit well with buyers or sellers or anyone for that matter.

Today’s consumer is way more knowledgeable than many like to admit.

If you’re going into a commission battle with a well-armed consumer, leave the blame behind, and focus on that value proposition.

6. ‘No one asks their doctor or lawyer for a discount’.

This one seems to be surfacing more and more often in commission-cutting discussions.

First, you’re not performing brain surgery, saving lives or keeping people out of jail.

Yes, your job is important. Yes, you’re helping someone through what is likely one of the largest financial transactions they will make.

But you shouldn’t be comparing yourself to doctors or lawyers — or any other profession for that matter.

You’ve got a pretty unique role; use that to your advantage.

7. ‘Commission rebates are illegal, so I can’t.”

The point was made by an agent located in California — where real estate commission rebates are perfectly legal. 

Using Google, it took me five seconds to verify that, straight from the CAR.

You don’t think the consumer requesting a rebate can verify it just as easily? Really?

This argument comes up all the time. Despite the fact that commission rebates are legal in 40 of the 50 states.