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Before we get into some scripting, you must know the following information and statistics to properly handle the objection:
-How many agents are in your MLS?
-What percentage of homes in your market change hands using two brokers? In other words, how often is there a cooperative situation between listing and buyer’s agents?
-Any forms your board requires for commission agreements.
-What percentage of your listings do you sell yourself?
(Use your broker’s numbers if you don’t have averages yet)
And ALWAYS: Prepare a Seller’s net sheet showing a low, medium, and high purchase price, including the buyer’s side commission as well as your listing commission.
Seller’s Objection to you, their Potential Listing Agent
SELLER: (any of the following)
“I don’t want to pay the buyer side commission.”
“I heard we no longer have to pay for a buyer agent’s commission”
“I heard it’s legal now to not pay for the other agent’s fee.”
“I only want to pay X % total. How does that work?”
It’s all the same objection, essentially: “I don’t want to pay for the buyer’s agent.”
YOU:
“That’s true, you’re not ‘required’ to offer the buyer’s agent a commission, but you certainly COULD.” (Pause!).
Note: you WANT the Seller to ask you:
SELLER:
“Why is that?”
YOU:
“I’m glad you asked. You might want to consider offering to compensate an agent who brings the buyer for your home.”
#1: X number of agents belong to our MLS. We want them ALL to be excited to show your home to their qualified and motivated buyers. If your house is right for their buyers, we want them to write an acceptable offer, wouldn’t you agree? (Seller: YES).
“We need to be able to compensate those agents for their hard work. Not just for bringing them to a showing, but making sure their financing is in line, they handle the inspections properly and all of the other things they do for their part of the transaction.”
“For this reason, you may WANT to offer to pay the buyer’s agent.”
YOU:
#2: “Buyers in today’s market are having to come up with a whole lot more money to purchase a home than they did just a couple of years ago. Between the higher purchase prices, larger downpayment funds, and bigger monthly payments, there’s not much left to pay out of pocket for another expense.”
“They’re cobbling together lots of funds to make the purchase. If they have to also pay out of pocket for their agent, it could work against us. They could be taken out of the market completely, or at least out of the market for listings that don’t include the buyer agent’s compensation.
“It’s not really up to the agent to decide which homes they show or don’t show to their qualified and motivated buyers. The buyers themselves may ask to only see homes that include their agent’s fee.”
“I’m sure you’ll agree that we don’t want to limit our buyer pool if we don’t have to. You might WANT to offer to compensate the other agent.”
YOU:
#3: “Let me ask you this: When you bought this home, was your buyer’s agent fee covered through the terms of the sale, or did you pay them separately?”
Seller: “Well I guess it was included.”
YOU: “So you did pay it, but it was part of the purchase price, right?”
Seller: “Yes, it must have been part of the deal.”
YOU: “If it hadn’t been, what would you have done?”
Seller: “I guess we would have had to come up with more money or buy something else, or maybe not bought at all.”
YOU: “So if we applied today’s rules to purchase today, would you have paid out of pocket?”
Seller: “No, probably not!”
YOU:
“Yea, me neither! And back then, prices weren’t so high! Did you know that just in the past three years, nationwide, home prices have gone up by an average of 48%? A 20% down payment on your home is $_______, so we should at least consider not making a buyer have to come up with even more money than they need to close on your home, right?”
Seller: “I get it.”
YOU:
#4: “Finally, Even if you don’t decide to cover the buyer’s agent compensation, certain buyers may still wish to see your home, and even want to buy it. That would be great, but if those buyers can’t afford their agent they can legally and ethically ask for their agent to be paid as a seller’s concession.”
“This is fine, and has always been legal, but it can complicate the purchase agreement, and sometimes even hinder the buyer’s ability to obtain financing. FHA, VA, USAA, and some other programs may not even allow for a commission concession to be included in the transaction. We don’t want to add potential pitfalls to finalizing your sale, so you MAY want to consider including buyer’s agent compensation in the terms of the listing.”
“Based on the comps, if we were to do so, the net proceeds to you would be between $__X___ and $__X__. Is that enough for you to make the move?”
“OK great, when would you like your first showing?”
