How Realtors® Can Preserve Their Commission

demonstrate value to maximize commissionsCommissions are the livelihood of real estate agents and brokers. It is what motivates them to sell. However, there are times when agents reduced their commission, but felt they were worth more.

So, how do you protect the integrity of your commission? It really comes down to negotiating and experience. When a seller asks an agent to take less, what they are really asking is why I should pay more. It is a battle between perceptions versus reality.

However, real estate agents can maximize commissions by being prepared to demonstrate the value of the services they provide, their industry knowledge and experience, and a proven track record of successfully negotiating similar real estate transactions.

How to justify you’re worth the commission:

Industry Experience

Let your industry experience shine. In the real estate industry, knowledge really is power. And sellers are not just paying a commission for your time and effort; they are paying for your knowledge too. Most sellers are not aware of the strict educational, licensing and two-year re-certification requirements that Realtors® must successfully complete. You may also have other specialized training and designations that distinguish you from the competition.


Demonstrate your performance by showing off your track record of closed sales. You may want to include a comparison of the length of time your listings stay on the market compared to other competing agents along with the percentage they sold within the asking price. At the end of the day, sellers want to get the most for their home in the shortest time possible.

Advertising and Marketing Programs

Homes don’t sell themselves. Provide the seller with a personalized marketing plan that illustrates your strategy for selling their home to make it easier for the seller to visualize. You may even want to show examples of the types of advertising and marketing programs you provided for some of your other listings like open houses, print media, Internet and any other services that demonstrate your value.

With all of the competition in real estate, agents and brokers often need to justify that the value they provide is worth the commission. Sometimes clients need to be reminded that you’re providing a professional service, but unlike other service providers such as a doctor or a lawyer who gets paid when services are rendered, you only get paid when the property sells.


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