How Do I Present Commission Options to a Seller?

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

As an agent, are you offering your clients different commission packages?

This has been a growing topic since the NAR settlement, and something clients might ask you. Personally, I don’t prefer this approach, as I include the high-end services automatically, and I feel like anything less would be a disservice to my clients. However, just like you, I was curious and wanted to understand. So what would that look like if you were offering this and how would you present it?

Essentially, the strategy goes like this: You could offer three commission packages at different rates and levels of service. However, the cheapest option and the most expensive one are strategically designed to push people towards viewing your middle option as the best deal. Here’s how each one of your options could work:

#1 The barebones option.

This is your cheapest package, offering just the basics without premium services. For example, it might include photography but on a minimal scale and without drone footage or anything that could be considered “extra.” While some may opt for this, its goal is to highlight why your main package is worth paying for more and demonstrate what your clients might be giving up. For example, it might be a good idea to reiterate that most sellers in the market will have more detailed marketing packages than this one.

#2 The ideal option.

This is your standard commission package, and it should be what you’re driving clients to choose. The details of this package will depend on your skills and investment as an agent, so seek out training if you aren’t confident you can offer premium service. If you trust your skills, you will have the leeway to charge a little more than your competition; however, only do this if you can back up your price. I recommend developing this package first and working backward to build your barebones and luxury options.

#3 The luxury option.

This is the ultra-premium option that most people probably can’t afford. It should be full of bells and whistles that most people will see as unnecessary, but don’t worry; this is actually your goal. While this luxury option offers tons of extra services, clients will look at your standard offering and see that they get nearly the same level of service for a significant discount. Once again, while some clients may be willing to pay for this luxury service, the main goal is to make your standard offering look like the best deal.

Hopefully, this guide will help you develop your commission packages if you choose to do so. If you need help reviewing a plan that appeals to your seller and pays you for the knowledge and service you are providing, feel free to reach out. I look forward to hearing from you!