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Getting a listing at full commission is proving more and more difficult for real estate agents, especially with the housing market in a slump. For some, lowering their commissions is the only way to maintain profitability, although this method only ends up hurting both the agent and the client. Learning how to keep that commission and even ask for a higher one is necessary for agents to stay in business.
Higher Real Estate Commissions For Better Service
When an agent sells a home, there is a certain level of expertise that agent is supposedly bringing to the table. However, as homeowners are in an economic bind themselves, they expect the most they can get without having to pay extra for it.
This tactic simply does not work in real estate, as marketing tools and costs alone are part of why commissions need to be high in the first place. Explain to the seller that cutting back on these essentials puts everyone at a disadvantage, as less marketing equals less exposure and fewer interested buyers.
Lower Real Estate Commission Hurt Brokers
If real estate professionals cut their commissions across the board, the value of service they provide would be undermined. How much professionals charge is related to the kind of service they can give, so raising the value means raising the standard of excellence. If sellers do not agree, just point to the fact that nearly all real estate transactions are handled with real estate agents.
Broker Commission Reflect Agent’s Work
Face it -- you work hard to earn your paycheck. Unlike other industries, not making a sale can really hurt your business and personal finances. Not only are you qualified for the job, but you are also good at it. Hence, as a real estate professional, you should earn a commission that reflects this. Asking for one percent more than what you currently get is still a good increase without having to do any extra work. By insisting on a higher commission, agents stay profitable, keeping their hard-working reputation intact and benefiting the entire real estate community.
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