Key facts
- Real estate agents should not discuss commission fees via text message.
- Discussing commission before establishing value can lead to homeowners perceiving agents as evasive.
- A homeowner's question about commission is seen as the only variable they understand.
- Agents should move the commission discussion to a phone call or in-person meeting.
- The conversation should first establish the link between price and quality of service.
- Commissions should be presented as a range tied to the client's needs and marketing plan.
Real estate agents are advised against discussing commission fees via text message, as this can lead to misunderstandings and lost business. According to Darryl Davis, a national speaker and coach, a homeowner asking about commission is seeking the only variable they understand, price, and a refusal to answer can be perceived as evasiveness.
Instead of dodging the question, agents should change the medium by suggesting a phone call or an in-person meeting. This allows for a proper discussion where the agent can first establish the relationship between the price of a service and its quality, using examples like healthcare. By framing the conversation around value, agents can shift the homeowner's focus from simply finding the cheapest option to understanding what a particular commission buys.
When discussing fees, agents should provide a range rather than a flat percentage, explaining that the fee is tied to the client's specific situation, such as the urgency of the sale and the desired net amount. The marketing plan and associated costs influence the final percentage. Ultimately, agents are encouraged to coach homeowners on asking better questions about how they will achieve the highest possible price, positioning themselves as advisors who prioritize the client's interests.