COMMISSIONECTOMY - Buffini and Company

BY J’AIME NOWAK, BUFFINI & COMPANY MASTER TRAINER

AVOIDINGTHE

COMMISSIONECTOMY

AVOIDING THE COMMISSIONECTOMY | © 2016 BUFFINI & COMPANY, ALL RIGHTS RESERVED

Three Keys To Earning What You Deserve

Mindset DON’T BUY INTO THE IDEA

that “something is better than nothing.” Especially when

it comes to your livelihood!

AS A PROFESSIONAL WHO HELPS PEOPLE

through all the ups and downs of selling their home, and

provides excellent service as their trusted advisor, you

deserve to be able to cover your expenses, time and e�ort!

Otherwise, it’s simply not worth it!

THE AVERAGE REAL ESTATE COMMISSION

IN NORTH AMERICA TODAY IS 5%

1

THOUGHTS FROM THE PROS…

“If you value yourself and the fantastic service andcare you provide, others will value it more too.


Fundamentals Overcome the “commissionectomy conversation” before it happens…

DO THE WORKING BY REFERRAL ACTIVITIES

Get voice-to-voice and belly-to-belly with your clients consistently. Provide ongoing value to your clients and you’ll create

advocates that send you a steady stream of high-quality referrals who already trust and respect you.

COMMUNICATE YOUR VALUE AND KNOW HOW THAT BENEFITS YOUR CLIENTS

A great way to do this is to walk them through the contract and point out all the opportunities you’ll have to guide and

serve them throughout the home buying or selling process.

INFORMATION IS POWER!

Inform your clients of your professional credentials. For example,

if you’re listing their home you can share how you get homes sold

more quickly than market average or you can share a better than

average list-to-sales-price ratio.

UTILIZE THE COMPLETE HOME MARKETING PLAN

If you’re a Bu�ni & Company Member, and you’re trying to sign

a contract with a seller, make sure to utilize the Complete Home

Marketing Plan. It’s a comprehensive tool for marketing their home

that will help you stand head and shoulders above any others.

EDUCATE

Educate your clients on your system for staying in touch

throughout the listing period and transaction. For example,

tell them “I’ll call to provide an in-depth update on Fridays,

and text or call as pressing deadlines or details

arise.” 2


Choice3

When you cultivate a positive mindset and execute on the fundamentals of

connecting, educating and articulating the benefits of working with you, your

e�orts will result in having a choice in who you work with, but…

IF A SELLER ASKS YOU TO CUT YOUR COMMISSION…

You need to be prepared to answer!

It’s an opportunity for you to audition your negotiation skills –

and you can even let them know you’ll use those very same skills on their behalf!

3

THOUGHTS FROM THE PROS…

“Always stand your ground. The client may come back to you.”


CLIENT

“You know, I’ve had another Realtor in here and they said they’d cut their commission... ”

AGENT (DIALOG OPTION #1)

“I understand that. Some Realtors cut their commission and they should. [Barbara],

I provide a certain type of service in the marketplace. And you know the old adage,

“You get… [let the client say “what you pay for”].

“I know it sounds like only a small reduction in my compensation – 1% – but it is actually 33%... And it’s the

part I’d take home. I’m sure you understand. If I can’t take care of my family, I can’t take care of yours.

“My goal is to serve you and your family to the highest level; to get you the most money for your home

and to take care of your interests during and long after your move... This is the compensation I earn

for that. That is why [Fred and Judy] referred me to you.

“I appreciate you asking, but if I treat my earnings as if they don’t matter,

how will I treat your money as I go to bat for you throughout the

many negotiations that happen while selling your home?” 4

HOW TO NEGOTIATETO KEEP YOUR COMMISSION

In today’s real estate climate, you should be well prepared for if and/or when you get the question: “Will you discount your commission?”

The following are some dialogs to get comfortable with so you’re ready to defend your value and keep more money in your pocket! Don’t worry

about memorizing them word for word, but read through them, get comfortable with the content, video or record yourself practicing and make

them your own. Mastering this negotiation, and communicating about how this skill will benefit your clients, will further establish you as their

trusted advisor and a consummate pro. Go for it!

OPTION #1


AGENT (DIALOG OPTION #2)

“I understand that. Some Realtors cut their commission and they should. [Barbara], I provide a certain type of service in the marketplace.

And you know the old adage, “You get... [let the client say “what you pay for”].

“And you know, there are people who shop at a discount store and there are people who shop at a department store.

There are people who change their own oil and there are people who go to the dealer. And it’s okay. I only provide one type of service.

“You know when I go to my dealer, he changes the oil, he cleans the car, he checks everything out. It’s first-class service so I pay him a

few extra dollars. Now, I can go to the store, buy the oil myself, jack up the car and get under there and change the oil myself and I can

save money. And by the way, you can do that too. And there’s many di�erent beautiful ways you can do that in the real estate industry

today. But I only provide one type of service and this is what it costs.

“Now the next thing I want to share with you [Barbara], is that when you’re asking me to cut my commission, whether you realize it or not,

you’re asking me to audition the single most important skill that a Realtor should have. And that’s the ability to negotiate.

“I just want you to think about this... If you can negotiate a better deal

on my commission than I can, you’re probably going to be able to

negotiate a better deal on your house than I can.

“If the other Realtor you had in here today was willing to discount their fees

and throw their money away, just think how quickly they’ll throw your money

away – not just in the initial phase of the transaction, but during the transaction

and all the di�erent negotiations that take place.

“So [Barbara], here’s what I want to share with you... One of the reasons you’re

paying me is because I’m a really good negotiator. This is our last negotiation

between us. Now you’re hiring me to go work for you. And I’m going to

save you money, I’m going to make you money, I’m going to negotiate

less hassle, I’m going to negotiate this contract for you. I’m going to

negotiate this transaction for you. And I’m going to get you where

you want to go in first-class style.”

5OPTION #2

About Bu�ni & CompanyReal Estate Coaching, Training, Events, Marketing Systems, CRM

Headquartered in Carlsbad, CA, Bu�ni & Company is the largest real estate coaching and training company in North America. Founded by

real estate expert and master motivator Brian Bu�ni, the company provides a unique and highly-e�ective lead generation system and

comprehensive business coaching and training programs which have helped entrepreneurs in 37 countries improve their business, increase

net profit and enhance their quality of life. Since its founding in 1996, Bu�ni & Company has impacted and improved the lives of thousands of

small business owners with strongly balanced work-life strategies.

About J’aime NowakBu�ni & Company Master Trainer

Starting in the real estate industry in 1995, J’aime quickly became a top-producing agent and then a wildly

successful broker. Brian Bu�ni recruited her in 2004 to bring her skills to a wider audience, and she’s now

trained thousands of professionals across North America on how to build a profitable business and fulfilling life.

Sources: NAR, April 2016, TREB, April 2016Cover Photography Copyright © 2016 GettyImages

Book design and production by Bu�ni & CompanyTM, www.bu�niandcompany.comThe information in this book is meant to supplement, not replace any Bu�ni & CompanyTM training


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COMMISSIONECTOMY - Buffini and Company