Why Your Real Estate Commission Should Never Be Negotiable
Not everyone agrees on pineapple on pizza, but one thing everyone loves is saving money. Whether it’s cutting coupons or negotiating a lower agent commission, people always look for the best value at the lowest cost.
But when it comes to your commission as a real estate agent, it should be non-negotiable. Your income fluctuates with the market and the number of listings you have—don’t undervalue yourself just because you’re afraid of losing a client to another agent. Instead, show them why you’re worth your fee.
Prove Your Value With Transparency
A great way to demonstrate your worth is by breaking down exactly what you do to market and sell a home.
Homeowners often have unrealistic expectations of the process—TV shows like the ones on HGTV make it seem like selling a home takes just 30 minutes. They don’t see the behind-the-scenes work that goes into pricing, staging, marketing, negotiating, and closing the deal.
The first step? Make a list. A big one.
List every single task involved in selling a home, and don’t hold back! The more detailed you are, the more eye-opening it will be for sellers.
Attach a Price Tag to Your Services
Go beyond just listing what you do—assign a time frame and a real cost to each task.
For example:
- Photography & Staging Consultation: $500
- Online Advertising & Social Media Campaigns: $1,200
- Custom Marketing Brochures & Feature Sheets: $300
- Hosting Open Houses: $400
- Market Research & Pricing Strategy: $600
Your sellers don’t need to know that your relationships with professionals help reduce costs. If not for your expertise and network, they would be paying full price for these services anyway.
This exercise helps them understand the true value behind your commission.
Add Value Through Exceptional Service
Beyond the numbers, show sellers why you care more and do more than other agents. Highlight what sets you apart, such as:
- Personally attending every showing to ensure the home looks its best
- Following up with every agent after a viewing for feedback
- Hosting engaging open houses with high-end marketing materials
- Offering constant communication and updates to keep sellers informed
When sellers see the effort and expertise you bring, they’ll realize that negotiating your commission is not in their best interest.
What If They Still Want a Lower Commission?
If a seller insists on paying less, flip the conversation back on them:
“Which services would you like to remove from my marketing plan?”
or
“Would you prefer to pay out-of-pocket for these services instead?”
This approach forces sellers to reconsider—they want the best results but now understand that quality comes at a cost.
Stand Your Ground—You Deserve Your Commission
If you let people undervalue your expertise, they will. Your time, effort, and skills are worth every dollar. The key is to ensure sellers don’t save money at your expense.
Stay tuned for our next blog, where we’ll cover how to handle the most common commission objections like a pro!