AVOIDING THE COMMISSIONECTOMY BY J AIME NOWAK, BUFFINI & COMPANY MASTER TRAINER
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1 AVOIDING THE COMMISSIONECTOMY BY J AIME NOWAK, BUFFINI & COMPANY MASTER TRAINER
2 THE AVERAGE REAL ESTATE COMMISSION IN NORTH AMERICA TODAY IS 5% Three Keys To Earning What You Deserve Mindset DON T BUY INTO THE IDEA that something is better than nothing. Especially when it comes to your livelihood! AS A PROFESSIONAL WHO HELPS PEOPLE through all the ups and downs of selling their home, and provides excellent service as their trusted advisor, you deserve to be able to cover your expenses, time and effort! Otherwise, it s simply not worth it! THOUGHTS FROM THE PROS If you value yourself and the fantastic service and care you provide, others will value it more too. 1
3 Fundamentals Overcome the commissionectomy conversation before it happens DO THE WORKING BY REFERRAL ACTIVITIES Get voice-to-voice and belly-to-belly with your clients consistently. Provide ongoing value to your clients and you ll create advocates that send you a steady stream of high-quality referrals who already trust and respect you. COMMUNICATE YOUR VALUE AND KNOW HOW THAT BENEFITS YOUR CLIENTS A great way to do this is to walk them through the contract and point out all the opportunities you ll have to guide and serve them throughout the home buying or selling process. INFORMATION IS POWER! Inform your clients of your professional credentials. For example, if you re listing their home you can share how you get homes sold more quickly than market average or you can share a better than average list-to-sales-price ratio. UTILIZE THE COMPLETE HOME MARKETING PLAN If you re a Buffini & Company Member, and you re trying to sign a contract with a seller, make sure to utilize the Complete Home Marketing Plan. It s a comprehensive tool for marketing their home that will help you stand head and shoulders above any others. EDUCATE Educate your clients on your system for staying in touch throughout the listing period and transaction. For example, tell them I ll call to provide an in-depth update on Fridays, and text or call as pressing deadlines or details arise. 2
4 3 Choice When you cultivate a positive mindset and execute on the fundamentals of connecting, educating and articulating the benefits of working with you, your efforts will result in having a choice in who you work with, but IF A SELLER ASKS YOU TO CUT YOUR COMMISSION You need to be prepared to answer! It s an opportunity for you to audition your negotiation skills and you can even let them know you ll use those very same skills on their behalf! THOUGHTS FROM THE PROS Always stand your ground. The client may come back to you. 3
5 HOW TO NEGOTIATE TO KEEP YOUR COMMISSION In today s real estate climate, you should be well prepared for if and/or when you get the question: Will you discount your commission? The following are some dialogs to get comfortable with so you re ready to defend your value and keep more money in your pocket! Don t worry about memorizing them word for word, but read through them, get comfortable with the content, video or record yourself practicing and make them your own. Mastering this negotiation, and communicating about how this skill will benefit your clients, will further establish you as their trusted advisor and a consummate pro. Go for it! CLIENT You know, I ve had another Realtor in here and they said they d cut their commission... AGENT (DIALOG OPTION #1) I understand that. Some Realtors cut their commission and they should. [Barbara], I provide a certain type of service in the marketplace. And you know the old adage, You get [let the client say what you pay for ]. I know it sounds like only a small reduction in my compensation 1% but it is actually 33%... And it s the part I d take home. I m sure you understand. If I can t take care of my family, I can t take care of yours. My goal is to serve you and your family to the highest level; to get you the most money for your home and to take care of your interests during and long after your move... This is the compensation I earn for that. That is why [Fred and Judy] referred me to you. I appreciate you asking, but if I treat my earnings as if they don t matter, how will I treat your money as I go to bat for you throughout the many negotiations that happen while selling your home? OPTION #1 4
6 AGENT (DIALOG OPTION #2) I understand that. Some Realtors cut their commission and they should. [Barbara], I provide a certain type of service in the marketplace. And you know the old adage, You get... [let the client say what you pay for ]. And you know, there are people who shop at a discount store and there are people who shop at a department store. There are people who change their own oil and there are people who go to the dealer. And it s okay. I only provide one type of service. You know when I go to my dealer, he changes the oil, he cleans the car, he checks everything out. It s first-class service so I pay him a few extra dollars. Now, I can go to the store, buy the oil myself, jack up the car and get under there and change the oil myself and I can save money. And by the way, you can do that too. And there s many different beautiful ways you can do that in the real estate industry today. But I only provide one type of service and this is what it costs. Now the next thing I want to share with you [Barbara], is that when you re asking me to cut my commission, whether you realize it or not, you re asking me to audition the single most important skill that a Realtor should have. And that s the ability to negotiate. I just want you to think about this... If you can negotiate a better deal on my commission than I can, you re probably going to be able to negotiate a better deal on your house than I can. If the other Realtor you had in here today was willing to discount their fees and throw their money away, just think how quickly they ll throw your money away not just in the initial phase of the transaction, but during the transaction and all the different negotiations that take place. So [Barbara], here s what I want to share with you... One of the reasons you re paying me is because I m a really good negotiator. This is our last negotiation between us. Now you re hiring me to go work for you. And I m going to save you money, I m going to make you money, I m going to negotiate less hassle, I m going to negotiate this contract for you. I m going to negotiate this transaction for you. And I m going to get you where you want to go in first-class style. OPTION #2 5
7 About Buffini & Company Real Estate Coaching, Training, Events, Marketing Systems, CRM Headquartered in Carlsbad, CA, Buffini & Company is the largest real estate coaching and training company in North America. Founded by real estate expert and master motivator Brian Buffini, the company provides a unique and highly-effective lead generation system and comprehensive business coaching and training programs which have helped entrepreneurs in 37 countries improve their business, increase net profit and enhance their quality of life. Since its founding in 1996, Buffini & Company has impacted and improved the lives of thousands of small business owners with strongly balanced work-life strategies. About J aime Nowak Buffini & Company Master Trainer Starting in the real estate industry in 1995, J aime quickly became a top-producing agent and then a wildly successful broker. Brian Buffini recruited her in 2004 to bring her skills to a wider audience, and she s now trained thousands of professionals across North America on how to build a profitable business and fulfilling life. More dialogs and resources are available in our Members Area, so log in and take advantage of these tools today! Not a Member? Register for a Complimentary Coaching Session and start earning 8x the national average agent income! Sources: NAR, April 2016, TREB, April 2016 Cover Photography Copyright 2016 GettyImages Book design and production by Buffini & Company TM, The information in this book is meant to supplement, not replace any Buffini & Company TM training
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