Are your agents cutting their commissions and leaving money on the table? It’s a pretty common scenario in today’s competitive real estate market for agents to make concessions in their commission amounts to get a deal at any cost. But what is the real cost to the agent, the brokerage and everyone’s pocket book?
In today’s ultra competitive market, every agent is trying to stand out and differentiate themselves. But cutting commissions doesn’t necessarily show anything other than a willingness to give away your value as an agent. Instead of offering to cut commissions to win a deal, it’s important for agents to understand how to demonstrate their value in the services they provide to their clients.
As a broker, it’s important to know which agents are successful at selling their value and which ones struggle and then leverage those successful agents and share that knowledge with struggling agents to teach them how to sell their value to a client and get a full commission on a deal. When you have agents who are cutting commissions, word can spread, and while everyone likes a deal, it can also be construed that your brokerage doesn’t provide a high level of service and isn’t suitable for consumers who need an experienced agent or team to guide them through the buying or selling process.