YesTalk-231 - Buyer Wants Your Commission

Welcome to Kevin Ward's yes Talk for Realtors.

This is Kevin Ward. You're working with a buyer, and your buyers ask you to give them a part of your commission. What do you do, what do you say, and how do you tell them no? I have had this twice already. In 2021, I've had two people ask me, how do you deal with this? Buyers ask you to give them a part of your commission. What do you do? And then I saw it on a Facebook group for Realtors. This question came up now in. It was very interesting to me, the Facebook group, when it was asked, there were literally hundreds and hundreds and hundreds of people that answered, how do you say no when somebody asks you to give them on a buyer ask you to give them a part of your commission? So first thing I want to do is talk about what I call the stupid answers. And then we're going to talk about what is the best answer of how you can actually say no to giving away a part of your commission and yet do it in a way that adds value to them and builds the relationship rather than distances the relationship. So let's first talk about the stupid answers. This is what you don't ever want to say. So, number one answer. The number one stupid answer. Will you give me a part of your commission? I'm the buyer. And. And the stupid answer is no, no, no, no, no, no, no, no, no, no. And I literally have seen hundreds of agents that they answer that. This is why you don't want to go to Facebook groups and depend on their wisdom to help you learn how to get more yeses. Now, does no handle the objection? And the answer is yes, it handles the objection. The problem is it also puts them on the defensive. It may end the conversation, but it also ends the collaboration. It's no longer you working with them. It's not you working against them. They're trying to negotiate for your value. And so the worst thing you can ever do when any objection no is the worst. Well, let's just say this. I've got another video that's going to be posted in the next week. I'll post the link as soon as we get it up. I'll post the link down below. If you in the comments here on the dumbest objection handler ever. So if you're watching this video and it's been up a week, you'll have a link down below on the dumbest objection handler ever on why no is the worst thing you can ever say and how to deal with it. Okay, so no don't use. Don't just say, no, I won't do that. Okay? It just ends the conversation and it definitely hurts the relationship. The second stupid answer for how to handle this objection is to say, I can't. No, I can't do it. I would love to, but I can't. I can't because it's illegal. I can't because my broker won't allow it. I can't because my commission is not mine. It belongs to the broker or whatever it is. All of that is either incorrect, inaccurate, or just basically bs. But the worst thing is it makes. It doesn't make them want to work with you. If you say, well, I would, but I can't because you're not a lot. You don't have a license, so I can't give you a referral. Well, one that is legally inaccurate. And yet I saw on the Facebook groups when I've seen this question answered, asked, countless agents will go like, well, you don't have a license. I can't give you money. Well, that is not actually true. What almost every state in the United States, and this is strictly for United States North America, is that you cannot give a referral fee in most states to an unlicensed person. Well, your buyer is not a. Is not a referral. This. They are a principal in the transaction and principal in the transaction. You can pretty much do anything you want. Anything you want as long as all parties are aware and so forth. Now, I'm not. This is not legal advice. I am not an attorney. But that's just the truth. That's just the way it is. So don't ever say, well, I can't because you're not licensed and I can't give referral fees or I can't give money to somebody who doesn't have a license. That's not true. And if you say, well, I can't because my broker won't allow it, that may be true and it may be legit. Here's the problem. It makes them not want to work with you because I want to work with somebody who can do stuff, not who can't. Because all I was telling him is I don't have power. I don't have authority. And people instinctively, if they're going to work with a professional who represents them, they want somebody who has power, somebody who knows, who can, not somebody who can't. And so anytime you say I can't, that is what we call a resistance trigger. Just like no is a resistance trigger. It creates resistance. I can't is also a resistance trigger. Third stupid answer is to be sarcastic. Okay, well, will you give us a cut of your commission if we use you to buy our house? Well, here's. So here's some of the sarcastic. Well, okay, I'm happy to. Which room of the house am I going to get? Or something like that. How much equity of your house am I going to get? Or. Well, I'll give you a part of my paycheck if you'll give me a part of your paycheck. Those kind of any. Any answer like that, if they're really well played, they may be a little humorous and all that, but it's also kind of cheesy. And it's kind of like, that's not the point. I just want to know, if you're making all this money, why don't I get some of it? Okay. It's only in real estate do we ever have to even negotiate our pay. Just. It's kind of a crazy thing, but it is the way it is. So let's talk about how you actually answer the question. I'm the buyer. I want a part of your commission. What are you going to say? So here is the best answer, and it's really simple. And I'm going to tell you how you answer it, and I'm going to tell you why we say each part of this. Okay? So just acknowledge the question. Hey, that is, you know, that's a great question. I appreciate you asking. My commission really isn't part of the negotiation. Just not. Can I explain why? Number one, because unlike many unskilled agents, my value is in getting you a better deal on the home you choose. See, the reason buyers work with me is because I help them get the house they want and actually help them get it. And I help them get it for the best price with the best term. Meaning you actually pay lower for the pay less for the house, and you have lower monthly payments every month for as long as you own the house. Now, that's a pretty nice bonus, right? That's a pretty nice benefit. Excellent. Now, and the best part of this all is, is that I help you get a great deal, and then the seller is actually the one who pays me for working for you. So it's really, you get a double win, right? Game over every single time. That will end the conversation, even if they still want to say, well, yeah, but they get it. And here's what they get. Okay, here's what they get. There are three reasons why this answer is a better way to answer the objection, number one, it actually legitimately respects and honors them. And their question, we're just trying to get the best deal. We're just trying to figure out how do we get out of this with the most money in our pocket. And we figure we're going to pay all this money for the house and you're going to get paid some of it. Why don't we get some of that back as a rebate? Okay, well, some agents, that's the only value they have is I don't really do anything for you other than do paperwork. So here, here's part of my commission to make you feel better, okay? But when I answer, say, you know what, that's a great question and I appreciate you asking. You're respecting their question and you're respecting them. And then you simply give a straightforward answer. And here's a straightforward answer. My commission are not part of the negotiation, okay? Now this straightforward. My commissions aren't part of the negotiation. And that ends the expectation that we can negotiate on commission. So I'm laying the groundwork, but it's not because I can't. It's because that's not the way I work. But if I just go like, well, yeah, but that's not the way I work. That's not my business model. Then it's about me and the way I work and my stuff. They ask about my commission, so I just say my commissions are not part of the negotiation. And then I. And then I shift the conversation. Can I explain why? Now, that is a very simple yes or no question. And of course they're going to want to know why. So they're going to say, well, yes, awesome, because. Which is an influence trigger which I train about in my coaching. Because unlike a lot of the skilled age, unskilled agents out there, my value is in getting you a better deal for the home you choose. My value is not in giving you a part of my commission. My value is I actually help you get a better result. Okay? And then I. And in doing that, you contrast yourself to the other agents out there who aren't skilled, who aren't powerful, who don't know how to get them a house and how to get them the best deal on a house in terms of terms and price. And then you say, the reason that buyers work with me is because I help them get a better deal. And what are you doing? I'm now generalizing that it's not just you. This is the reason, this reason people want to work with me, which implies I have value. People want to work with me not because I'm cheap, but because I get them a better result. So we turn the conversation from the cost of me to the value of me. So now you're not talking about your cost, that is commission. You're talking about your value of why do people want to talk. Why do people want to work with you as an agent? Why? Because I get them a better result, I have more value. And so they're happy when I get the commission. Why? Because I help them get a better deal, which means they paid less for the house, mean they get to keep more money in their pocket, and they get lower house payments because they got a better deal on the house, which benefits them month after month after month for the entire time that they own the house. Now that is a benefit, right? That's a huge benefit. And then after all of that, guess who actually pays my commission? The seller pays me for working for you to help you get a better deal. So that's a double win for you, right? Doesn't cost you anything and you get a better deal from working with me. So, number one, it respects them. Number two, it's collaborative, meaning it shares with them the benefit of working for you is their benefit, of that I'm what I'm doing. And the way I do it is for their benefit, not my benefit. It's not about me protecting my commission, it's about me helping them get a better result. And then the third thing it does is it makes you more valuable, not less valuable. It's not your commission that's valuable, it's you that's value. So it's not that your commission they want, it's you that they want. So after this conversation is over, they now have more loyalty and want to work with you more than they did before. So what are your thoughts? What experience have you had on this? How have you handled it in the past? What did you learn from this video? Make sure you put those in the comments down below. And if you want to get all the best Objection handling training in the industry, if you want to get the very best, join me at Agent Mastery Live 2021. The link is in the description below. Go to agentmasterylive.com get your ticket. You're going to spend three days with me and we're going to spend a lot of time talking about how do you use communication, how do you handle objections in a way that actually people make people want to work with you more? If you like the video, give it a thumbs up. Make sure you subscribe to the channel if it's your first time here, play to win and always expect yes.

Hey there, it's Kevin. I hope you enjoyed today's podcast. Are you tired of getting no after no when you're out there trying to get listings and trying to inspire sellers to say yes to you? Then I'd like to invite you to download a free copy of my no BS listing presentation. This presentation will guide you through exactly what to say that will have motivated sellers saying yes to you over and over again. Stop getting stumped with skeptical seller objections or the famous we need to sleep on it, eliminate the resistance and have sellers ready to hire you and give you the listing before you even finish your presentation. To get a complimentary copy of my proven listing presentation, go to yes masters.com download again, that's yesmasters.com download to download your free copy today.