Guarantees & Commission Flexibility Can Ease Seller Fears

In a few other real estate forums, agents and I debated on the value of guarantees and flexible commission when listing your home. Some think agents should stick to their guns because they deserve their "full commission". Others, like myself, will be flexible as long as we have a win-win situation.

To me, commission is just a matter of value. I provide valuable services, so am not going to charge less without good reason. I do like the idea of flexibility because our prices aren't fixed anyway. Agents at Keller Williams can charge what they want as long as they still provide full service.

I posted some top ways to ease a home seller's fears on a forum for real estate agents:

TOP WAYS TO EASE SELLER FEARS

Guarantees and Seller Safeguards. Home sellers want to feel safe and secure with an agent. They don't want to feel trapped. They want options and to know that they have made the right decision by listing with the person they hired.

1. Offer an "easy exit" listing agreement where the seller can cancel at any time before acceptance of an offer with 48-hour notice.
2. Offer a performance guarantee. My guarantee states that, if the seller does not feel I deserve my full fee at closing, we can negotiate it. This includes me getting paid ZERO if I did that bad of a job. Of course, sellers loved this and it showed how confident I was.
3. Offer testimonials from past clients. They can call some of my clients to discuss the good, bad, and the ugly. Most sellers do not call, but they like having the ability to speak with someone who recently listed with me.

Flexible Commission Programs. This is where you are rewarded if you find the buyer for your home. This works well for investors and those of you who are thinking about selling your own property.

Here is an EXAMPLE of what some agents offer as their flexible fee structure:

• 1-2% commission if you bring the buyer and your agent is the only agent in the transaction.
• 4% If the agent brings the buyer and is only agent in the transaction.
• 6% If another agent represents the buyer (co-broker gets 3%)

What do you think of these programs? Would you choose an agent who offered these over one who didn't? Some agents say no.