Are you a realtor who is just starting in the real estate business? Or maybe you’re just getting back into the real estate game? Real estate is a very competitive job. There are a lot of realtors practicing today and that means there are a lot of qualified people who can take your clients from you.
You really need to be on top of your game as a realtor, especially if you want a solid real estate commission on each home you sell. After all, you’re putting a lot of hard work into making a sale. There are a few simple things you can do to ensure you make a higher commission rate without being unethical. In this blog post, we will explore the six best tips for earning higher realtor commission rates:
1. Be Transparent When the Selling Price Increases
Your clients will appreciate that you’re open, honest, and transparent with them. If the price of a home that your client is interested in suddenly goes up by the seller, be upfront with your client about the price increase. They will appreciate you letting them know and will see that you are not just trying to slip it by them. Because you handled it in such a mature and professional way, they might be more open to the price increase. Transparency can go a long way!
2. Minimize the Impact of a High-Priced Home
This is all about the language you use when communicating with your clients. If a home is listed for $250,000 and your buyer’s budget is $200,000, as a realtor you can minimize the impact of the higher-price by saying things like “it’s only an extra $100 per month”, “but this house has an amazing jacuzzi tub that is well worth the extra $50,000” or “this house is really close to both your workplaces and has a great school in the neighbourhood for your children to attend.”
The best tips for getting higher realtor commission rates involves the use of language. You need to pluck out the best aspects of a home and present them to your client in an eloquent manner. They may not have seen things this way, so you are helping them open their eyes to all the good things this home has. It’s really a win-win!
3. Crank Up the Urgency
If you’re selling a home with a high price tag, crank up the urgency with the potential buyer. All realtors know that emotion helps sell homes. You can do this in many ways. For example, you can tell your client that a home like this sells fast (if it’s, in fact, true), or you can tell your client that there is only a very short window to get their bid in (but make sure this is true first) and if they like this home they should consider getting their bid in as soon as possible. By cranking up the urgency, your client will feel the need to move quickly to secure the home, especially if they love it, and you will get your commission that much faster.
4. The Double-Dip
With the “double-dip” method, the realtor works to find their own buyer. This way they represent both the seller and the buyer, which effectively doubles your commission. Double-dipping is usually used by realtors who dominate a certain area or condo-building and who believe there may have a good chance of finding their own buyer. For example, on a sale of a $350,000 condo, double-dipping could result in a commission of $8,750 and $17,500., rather than just $17,500.
5. Sell High-Priced Real Estate
If you’re looking to make more commission on the homes you sell, try selling homes with a larger price tag. The larger the price tag, the more commission there will be in it for you. There are always pockets of homes in certain neighbourhoods (or whole neighbourhoods) that sell for a very high asking price. See if you can present any of these sellers as a way to increase your commission.
6. Be Honest
The best thing you can do as a realtor is be honest. Be honest about the commission you’re receiving, be honest about potential noise from nearby trains, be honest about everything and anything. This will increase the probability that a seller will choose you as their real estate agent in the future. No one wants to deal with a realtor who is deceiving and just in it for themselves and shows no positivity toward the seller or buyer. Honesty is the name of the game in real estate and can go a very long way.
Now that you know some tips for higher realtor commission rates, you’re ready to get out there and get the job done. All of your hard work will pay off once you sell a home and get a nice commission check. Good luck!
