"What does that commission pay for anyway?"

How do you justify value (preferably in the beginning) with a seller?  One thing most sellers don’t know (even most REALTORS) is all that a good listing agent does to sell a home, and the time involved.  I once had a client ask me about commission (which I usually don’t have happen, and I made system changes after it occurred), and my response was something similar to the response below.  His response was to apologize for even asking!  Keep in mind most of these tools are not expensive (You can augment this for luxury sales), but are time consuming, and we often don’t even mention them all to the client.

Dear Seller,

We often find just giving a number out doesn’t come close to adequately making clear the investment we make as an agent in both hard costs and a significant amount of time.   We charge xx% for everything we do on the sale of the home.  We always recommend offering xx% incentive to buyer’s brokers to ensure they are excited and motivated to bring buyers to see you home. Often times, builders pay x-x% more than that on their standing inventory, so we do have competition.

Our listing commission of xx% doesn't just go to me (and Uncle Sam of course)... we have a full boutique operation to sell you home, from our team to the marketing operation. Here is a list of what you are paying for when you hire us:

1. Pre-listing consultation
2. Pricing consultation
3. Our staff's time
4. Professional photography (no iphone photos here)
5. Professional virtual tour
6. Youtube video
7. Facebook Live Broadcasts
8. Periscope broadcast
9. A custom website for your home only
10. World famous RE/MAX For Sale sign
11. Full color, beautiful flyers
12. Social media campaign via Facebook, Twitter, instagram, targeted by location and target demographics
13. MLS access and listing to thousands of websites via IDX
14. Weekly check-up on vacant properties
15. 5 hours of free handyman labor included
16. Dealing with cooperating REALTORS and handling showings
17. Offer consultation with you upon receipt of all offers included a net sheet analysis.
18. Negotiating on your behalf
19. Coordinating with the home buyer’s lender
20. Coordinating with the escrow/title company
21. Dealing with the HOA as needed to order state-mandated documents
22. Providing state-law required disclosures to help you remain in compliance
23. We meet the buyer’s lender’s appraiser at the home and help guide them as much as we can to bring in the appraisal.  Most agents don’t even talk to the appraiser, who has a huge say on if the purchase price agreed to by the buyer is even possible. 
24. Enforcing deadlines in the contract to ensure the buyer and lender are on track to a timely closing.
25. Access to RE/MAX, the number 1 real estate company in the world, and its thousands of agents worldwide.
26. Of course as you know, all of this is contingent upon selling the house, if we don't or can't get the price you want, we would be working for free (and incurring expenses). Which is all part of the deal in our business.
27. I have xx years experience selling homes, and stay on top of changing market trends and best practices and laws with continuing education.

Originally published on ActiveRain, September 30, 2016.