If I put you on stage and asked you to demonstrate all the ways you can overcome the commission objection, would you dazzle your audience? If not, then I suggest you practice. It is critical that you practice because it can help you hold on to tens of thousands of commission dollars each year.
I encourage you to have at least 2-3 great scripts for overcoming the commission objection (please feel free to use those I have provided for you at the end of this article). Set aside 15 minutes a day to practice them, record yourself handling them, and listen to them in your car. Practice before you go to each listing appointment. Remember, this is important! Work on your attitude, approach, and expectation. When the seller asks if you will take a cut, don’t flinch, don’t get angry, and always work to stay in rapport.
“Mr. Seller, I can understand why you would ask this question. If I were you, I would probably ask the same thing.”
Don’t Get Upset with a Commission Objection
You see, the statement, “If I were you, I would probably ask the same thing,” is a classic NLP technique — it keeps you in rapport. Whatever you do, don’t get angry with them. They have the right to ask, and you simply need to handle the question/objection in a logical fashion.
It should not be a ping-pong match. You shouldn’t be looking to “win” by showing them they are wrong to ask. Instead, you are looking to help them self-realize the reasons why paying more will help facilitate a higher sales price.
I would also encourage you to upgrade your listing presentation. A razor sharp presentation doesn’t need to be lengthy to be effective. It should be an engaging, question-based conversation with you talking no more than 50% of the time. Remember, sellers are not interested in hearing a pitch.
Sample Commission Objection Scripts
COMMISSION OBJECTION SCENARIO #1
Client: “Will you reduce your commission?”
“I’m curious, why do you ask?”
“If I were you, I would ask the same question.”
“When you think about it, I am sure you will realize that the commission is really a powerful marketing tool. What I mean by this is when you offer a reasonable rate of commission, it incentivizes my team to work overtime to market your home, and it causes the buyer agents to put your property at the top of the list. And that’s exactly why we need to list at 6% (or higher).”
Client: “No, I won’t pay that.”
“Remember, until I bring you an offer that you are happy with and are willing to accept — and we close on that offer — you won’t be paying anyone anything.”
“You are the person who decides whether or not to accept the offer, so you actually aren’t writing anyone a check today. You are still totally in control. All you’re really doing is dangling a marketing carrot.”
“There is a saying in real estate. Greater exposure equals greater demand, and greater demand equals a higher price.”
“Because the commission can impact the exposure and price, I am sure you will want to do the right thing and list it for 6%. It’s the right thing to do.”
COMMISSION OBJECTION SCENARIO #2
Client: “Will you take less commission if you sell it yourself?”
“By reducing my fee, you are actually reducing my incentive to bring you my best buyers. In fact, I work with such high-quality buyers that some of my clients even offer me a bonus if I sell it myself.”
“Remember, you’re not writing me a check today, so why not give me every reason to show your home to my best buyers? And then, when we have offers on the table, we can take a look at this again if the offers do not net you what you are looking for.”
[NOTE: If a commission objection presents itself, you are better off postponing that decision until there is a contract. Sometimes, once you get past this moment, the issue is not brought up again in conversation.]
COMMISSION OBJECTION SCENARIO #3
Client: “Will you cut the commission if I also buy from you?”
“Mr. Seller, I cannot do that. I can promise you that I will fight to get the highest price for your home, and then work aggressively on your behalf when I negotiate your purchase. When you think about it, just the fact that I am willing to stand firm on the commission shows you how strong I will be when negotiating for you.”
“I will protect your money as aggressively as I protect my own.”
Don’t cut commission out of fear, weakness, or ego. If you do it at all, it should be a carefully calculated business decision.