Your Client Says Your Commission is Too High – Solution for Commercial Real Estate Agents
When you are appointed to sell or lease a commercial property, the fact of the matter is that some clients will try to push you and your commission to lower values in comparison to other agents. The client wants a ‘bargain’, but what they really want more is a result from your promotion and marketing activities. Don’t forget that!
If the client tells you at the early stages of the listing presentation that ‘your fees and commissions are too high’, ask them if they will allow you to explain the way in which you will approach the marketing and inspection of the property. After you have done that for them they should be able to see why your fee is structured in that way.
Here is a standard phrase that I would use in responding to the client for this reason.
‘Mr Brown, I expect that we are more ‘expensive’ than the other agents in the local area, and in being so we deliberately approach the marketing of the property in a very special way to create more enquiries and activate the right inspections. Here are some clear examples of what we do, how that is different, and how that can help you with your property today. Our focus is to be the best agent for our client’s property; here is how we will do just that for you.’
The fact of the matter is that you must be a better agent in value and commitment to the promotion of the property. When the client can see that fact, the marketing of the property and the associated fees are no longer an issue.
The factors that excite the client’s attention will include the following:
- Reaching the target audience
- Shorten the time on market
- Build prestige and promotion into the property marketing
- Achieve the best price given the prevailing market conditions
- Fast track the settlement or solution given the clients time requirements
- Personal attention from the salesperson to take the property into the market on a ‘one on one’ basis.
For this very reason we should look at how we present our services and costs to the client. It’s not just all about the money; the money will be ‘acceptable’ if you tell the right story of commitment to the client and the property. At the centre of everything, the client wants the agent that can produce the desired results quickly and effectively. They want to believe that they are choosing the right agent that will do a great job. Is that you, and how will you do that.
I am a great believer that the marketing efforts that we put into a property today must be very special. When the client gives me an exclusive listing, I know that I have some real work to do. Generic property promotion is a waste of time. Every listing should be uniquely handled, and you personally should be taking that property into the local area.
