4 Ways You Can Combat Real Estate Commission Woes

Laura IlioaeiFebruary 14, 20226 mins read

As a realtor or real estate agent, negotiating your commission can make you feel a sense of dread. It’s easy to forget what an asset you are to both potential homebuyers and sellers. Sure, they can try to go about conducting a sale on their own, but it’ll be significantly harder without your help. In a current housing market where competition is fierce and there are more potential buyers than they are houses, the need for realtors and agents like you is more important than ever. Don’t underestimate your expertise, your access to gem listings that the average person would likely not find on their own, your connections, your ethical codes, and how your personality shapes how you do business. Gaining successful commissions all boils down to showing your psyche who’s boss. Read ahead to learn some tips on articulating your value in your services:

1. Actually Believing In Yourself

Some realtors and agents struggle with advocating for their desired commissions to the point where they go into their negotiations thinking, “I wouldn’t even want to buy or sell from myself.” Whatever your mentality conceives or believes, will crawl out of your brain and into the way you conduct yourself. Many gurus who create online courses will often have whole intro modules dedicated to reframing how you perceive yourself because they’re aware of how influential the mind can be. So if you don’t believe that you deserve your desired commission rate, you will get taken advantage of.

Of course, it’s not always as simple as snapping your fingers and suddenly gaining a newfound sense of self-confidence. Deeper issues such as imposter syndrome, anxiety, and traumatic experiences have a way of weaving their way into people’s professional lives. You may even need to consult with a professional or teletherapy in order to overcome the limitations that your mind’s giving you. But your first step is knowing that you’re worthy of what you want, and that you deserve to get a good commission!

2. Give Your Appearance A Touch-Up

Think of personal branding as cosmetics for your business: they enhance the beauty that already exists and make others aware of it. Referrals spread through word-of-mouth are still important, but they’re not (and admittedly, shouldn’t only be) the way you acquire more clients. The Millenial generation currently composes about a third of homebuyers, but they’ll eventually be an overwhelming majority of buyers and sellers. Since they’re digital natives, it’s paramount that your digital marketing strategies are on-point.

This doesn’t have to be complicated. Thanks to web-development services like WIX and WordPress, you can have your own website up and running at no cost. With a website, you can channel potent visual storytelling that compels clients to approach you. Humans are drawn to aesthetics. Take advantage of web layout, solid logos, and clean copy that really illuminates on yourself and your brand image.

You might find that your personal branding is untraditional, and that’s okay too! Take Margot Ettedgui, a realtor for Florida-based luxury realty agency Triangle Properties, for instance. She uses Instagram and TikTok by the handle @/therealqueenmargot to promote her services. However, her way of doing it is very indirect. She has the Instagram of Triangle Properties linked in her bio, but her account is mainly directed towards educating Gen Z about mortgages and using humour and a distinctive sense of fashion to imprint her image on others. In getting prospective clients to like who she is on a personal level, she’s able to create and form meaningful relationships that lead to more sales.

3. Have Data Speak For Itself

In terms of qualitative data, this can be quite literal. As a real estate agent or realtor, numerous positive testimonials are what will get many potential buyers and sellers from sitting on the fence in indecision, to on your turf wanting you to help them out. Having a tab on your website where you’re able to showcase testimonials that advocate for you and your expertise will immediately boost your credibility. People will immediately see that you know your real estate and that you might be a great option for them or someone they know.

Quantitative data may be a little more difficult to represent, but it’s still possible to have numerical data that also promotes your abilities. A net-promotor score, or NPS, is one effective metric that you can use. An NPS is a number usually ranging from 0-10 that ranks the likelihood that someone would recommend you to other people, such as their friends or colleagues. Usually, an NPS score is calculated by creating a single-question survey that asks your clients if they’d refer you to someone. Their answers are compiled, and your score will be determined by their input. You want to aim to have an NPS of at
least a 7 or 8.

4. Attract Clients With Your Value

It might be tempting to lower your rates in an attempt to gain more clients. However, this easily backfires. In charging less, you decrease your perceived value. When negotiating your rate with clients, don’t be so quick to lower your commission when they try to get out of paying you what you know you deserve. People will pay twice the price if they believe you can offer four times the value. At this point you know you’re worth what you ask for, you’ve shown your credibility, and now you need to stand your ground and drive the nail home: communicate how valuable you are!

You won’t be able to please everyone, but that was never the point. When you’re aware of what you bring to the table, you’ll feed the right clientele best oriented for you. In doing so, they’ll be more than willing to give you what you need in turn.

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