9 Convincing Arguments to Justify Your Commission

March 1, 2004

When sellers balk at the commission you’re asking, how do you convince them you’re worth the money? Try these persuasive pitches.

  1. Without a professional, you may not sell as quickly. Your monthly carrying costs—mortgage, utilities, homeowner’s insurance, gardener, trash removal, and routine maintenance—could end up costing you more than the commission.
  2. You’re gaining an objective negotiator who’ll work to get you the best dollars and terms possible in your market and in a timely fashion.
  3. You’ll benefit from my knowledge of competent home inspectors, architects, contractors, designers, landscapers, all of whom you might want to hire to get your house ready to list.
  4. Your home will be listed on the MLS and promoted through my advertising and marketing campaign, which includes newspaper and magazine ads, our company’s real estate TV program, special newspaper inserts, brochures, my Web site and REALTOR.com. Such exposure would be costly to do on your own.
  5. You’re getting numerous open houses, possibly three over the course of a 60-day listing. Costs incurred might include two directional signs for each open house ($50 per open house), newspaper ads ($25 per open house), photocopied materials on nice paper ($15 per open house), coffee and dessert or other nibbles ($20 per open house), and 300 postcards mailed to encourage attendance ($100 per open house). Grand total: $630 for the three.
  6. I’ll run a direct-mail campaign with colored fliers mailed first class. Grand total: $500 for an upscale listing.
  7. I’m part of a relocation network that refers potential buyers moving to the area, so I can help you reach qualified transferees, who are among the most motivated buyers.
  8. You don’t have to run home from work or stop other activities to show your house. I might even vacuum or tidy up for you. “If I have to, I will, and I have,” says John Stewart, CRS®, GRI, with F.C. Tucker Co. Inc. in Indianapolis.
  9. You’re getting my services and creativity without sharing in my overhead—office lease, employee payroll, technology support, file management, telephone expenses.

Sources: Wanda Grabner, CRB, GRI, Ludlow Ltd., REALTORS®, Indianapolis; David Knox, David Knox Productions Inc., www.davidknox.com, Minneapolis; John Stewart and Robbie Hunt, F.C. Tucker Co. Inc., Indianapolis