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It’s that time of year when money is on everyone’s mind to some extent, whether for holiday planning or thinking ahead to next year, so it only seems fitting that we take a beat and consider multiple facets of real estate commission today.
Below, you’ll find tips on how to make more money and keep that coin in your pocket. We’ll also look at the biggest policy changes agents should know about when it comes to commission.
Make more $$$
Inman contributor Jimmy Burgess has executed some pretty successful marketing strategies, once generating $11 million in listings in three months. He firmly believes that you are who you surround yourself with, and you’ll notice he talks to some impressive agents on a regular basis. Below, we’ve rounded up a few of his top posts on strategies that’ll help you put more money in your pocket.
Want a pay raise? 6 tips for increasing your average sales price
Increasing your average sales price is simply a small shift in focus followed by a strategic plan to position yourself as the luxury expert. Here are six steps that will help you do just that.
$6M in 4 months: How to use this agent’s free Facebook lead strategy
If you are looking for a source for free leads, don’t miss out on the opportunity that local Facebook Groups offer. Add value, be a valuable resource, and business will follow. Here’s how Realtor Jay Johnson does it.
$100M sales volume in year 2: How this rookie did it
Brad Dahler of Berkshire Hathaway HomeServices Beach Properties of Florida has more than $100 million in closed sales and pending contracts generated for 2021 — and he did it all in just two years. Here’s his plan of action.
$170M top producer breaks down the secret to his success
The key to success in real estate starts with honing your sales skills, according to Andrew Undem. As the leader of a team on track to close $170 million this year, he’s sharing the key factors to a superior sales experience for both clients and agents.
40 winning lead-generation strategies agents are using right now
Here’s Jimmy Burgess’ list of 40 buyer and seller lead generation strategies that agents out there are using to win deals right now. In the video, find out why he thinks you should start with the last three.
$10M in sales from Instagram: Steal from this agent’s playbook
Whether you’re brand new or you’ve been using it a while, if you adopt North Carolina agent Heidi Harris’ steps for yourself, you’ll grow your followers — and your business.
Here’s how this agent generated $108K on TikTok in 2021 (so far)
Learn from Atlanta Realtor Glennda Baker how to find new followers, build new relationships and generate new leads that will ultimately convert to more sales.
Here’s how I generated $11M in listings — in 3 months
Nothing is more impactful than letting homeowners know the value of their homes in the current market, and nothing will keep you top-of-mind more than this process. Enter the unsolicited seller CMA video.
Objection handled! 10 articles that’ll help you defend your commission
There’s a flood of new agents entering the market right about now. There’s a DOJ-NAR commission battle waging, showing that consumers’ are questioning commission status quo. And there are fewer listings than agents (something like 3-to-1 in some areas). According to Bernice Ross’ research: “About 15 percent of all sellers will select their agent based on the commission amount. If they could persuade you to represent them for free, they would do so.”
Never has there been a better time for a crash course in commission defending if you’re new or a refresher if this isn’t your first rodeo. Below, we’ve pulled together some of our top contributed posts on defending your commission.
Be transparent: How to have the commission conversation
The DOJ-NAR probe brings to focus that we should be educating consumers on commission from the get-go. Here’s how to approach the conversation.
Should I cut my commissions? 4 tips to defend your paycheck as a newbie
Most of us have been asked to reduce our commission for one reason or another. Understanding what’s really at stake and what you want the end game to be will help guide you in making the right call.
The real reason sellers shop by lowest commission
A homeowner shopping purely on price isn’t convinced that real estate agents are worth the commission. Here’s the best approach.
How not to lose the commission battle with sellers (and the listing)
When it comes to the commission battle, a lot of agents cave into reducing their fees instead of working to persuade sellers otherwise. Here’s why sellers make this request and how to overcome it.
Defend your commission: 5 reasons you’re worth it
To handle the commission objection with utmost confidence, you have to first know your value. These five reasons that illustrate why you’re worth every penny are truly just the tip of the iceberg.
11 objection-handling scripts agents need today
When it comes to working with buyers, objections are buying signs. Your role is to uncover their concerns, address them and move your clients forward in making the purchase. Here are a few important scripts to keep handy.
Stop it! 7 things not to say when defending your commission
Being asked to cut your commission is no fun. There are good ways to handle it, and there are bad ways. Here are the ways agents typically defend themselves — and the arguments that are best left unsaid.
Defend your commission! 3 steps for showing sellers you’re worth it
Here’s how to differentiate and showcase your value from the get-go at the listing appointment.
How to fight commission compression
Half the battle is knowing when to compete and when to walk away.
How to keep your commission off the negotiating table
You are worth your commission, and be sure to continue striving to be more and more deserving of every dollar you receive.
In case you missed it, NAR’s annual conference had fireworks. Inman’s Andrea Brambila was on the ground, and she noted five ways in which NAR just changed the future of real estate, from taking hate speech more seriously to listing transparency to a more dominantly female leadership.
Here’s what you should know as it relates to commission:
Consumers will see the compensation offered to buyer brokers
On Monday, the NAR board of directors passed three MLS policies that were inspired by a now-scuttled antitrust settlement between NAR and the U.S. Department of Justice.
As of January 1, the policies prohibit agents and brokers from advertising their services as free unless they will not actually receive any compensation from anyone for them and ban them from filtering out listings from website displays based on buyer broker commissions or the name of the brokerage or agent.
Most controversially, MLSs will be required to display buyer broker commissions on their listing sites and to include buyer broker commissions in the data feeds they provide to agents and brokers.
NAR policy previously allowed MLSs to prohibit disclosing to prospective buyers the total commissions offered to buyer brokers on agent and broker Internet Data Exchange (IDX) sites and Virtual Office Websites (VOWs).
The three policies are designed to better inform consumers, particularly buyers, about their role in compensating buyer brokers and agents. That role has become a flashpoint as NAR is currently defending itself from multiple antitrust lawsuits from homesellers and a homebuyer that seek to have homebuyers pay their broker directly, rather than have listing brokers pay buyer brokers from what the seller pays the listing broker — a move that could upend the U.S. real estate industry by effectively forcing changes in how buyer’s agents are traditionally compensated.
Last week, NAR launched a website to enlist its 1.5 million members to fight against these arguments in “the court of public opinion” by providing them with talking points and materials about how MLSs work and their benefits as well as the value of Realtors.
On top of that, the DOJ has launched an investigation of NAR’s MLS rules, including policies on buyer broker commissions and pocket listings, and NAR has sued the agency to stop the probe. NAR filed its latest volley against the DOJ in the middle of the conference, relying on the dictionary to make its point. The MLS policies’ approval positioned the trade group to be able to tout that it was complying with its end of the deal with the DOJ and the agency should do the same.
Before the board’s vote on Monday, some members of NAR’s MLS committee feared passing the buyer broker commission display policy would lead to more buyers asking for rebates and reduced commissions, while at least one committee member said,” [T]hat’s exactly what should be happening.” The discussion prompted one of NAR’s attorneys to remind committee members to abide by the trade group’s commitment to antitrust compliance.
Per the new policy, brokers and agents using MLS feeds will not be required to display buyer broker commissions, so the policy’s impact may be muted depending on how many brokerages decide against display. In addition, in the wake of the settlement, at least 65 MLSs had already changed their rules to allow public display of buyer agent commissions.
What did we miss on the commission front? Please share your thoughts in the comments section below.