BrokerageIndustry News

Waging war against real estate’s discounters

Defending Your Commission Part 1: Agents from your office who cut commissions

Part one in a five-part series. See parts 2, 3, 4 and 5.) One of the hottest questions today is how to defend your commission against discounters. Given the complexity of the market place, there's no simple answer. In January, I was the guest speaker for the Inman News monthly teleconference. During the Q & A, one of the callers asked how to defend your commission against discount brokerages that spring up during strong markets. Commission defense takes place at several levels. The greatest "discount" challenge actually comes from poorly trained agents who have weak negotiation skills and cut commissions as their primary strategy for obtaining listings. The most insidious is the agent within your own company who offers your company services at a reduced commission. You can "defeat" this type of discounting by doing two different things. First, you need a strong script like the one below: "To obtain the highest price possible for your property, you need someone who is a powerful...

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