Avoid Commission Problems with buyers (1)

Disclaimer: This won’t help you with commission problems with your existing or past clients.

In an earlier post we have already discussed about how to avoid commission problems with property owners. Today we discuss about avoiding commission problems with buyers.

The base idea remains the same – confirm your commission upfront before servicing buyers. Since your investment in the business is of time, you should not spend a minute servicing a client who does not intend to give you your commission. In case they negotiate your terms, you can take a call about how much time you want to spend on that client. Precaution is the best way to avoid commission problems.

There are 2 separate formats for residential and commercial property seekers.

Download in Word format by clicking here


Residential Property Seeker’s details.

1) On Rent/Sale:

2) Budget:

3) BHK:

4) Square Feet:

5) Areas preferred:

6) In case of rent, will it be an individual or a corporate agreement?

I confirm that I will give [YOUR COMPANY NAME] 1 month’s package/1% of the sale amount + service tax if I rent/buy a property inspected through them.


Commercial Property Seeker’s details.

1) On Rent/Sale:

2) Budget:

3) Office/Restaurant/Shop/Showroom/Warehouse:

4) Square Feet:

5) Areas preferred:

6) In case of rent, will it be an individual or a corporate agreement?

I confirm that I will give [Your Company Name] 1 month’s package/1% of the sale amount + service tax if I rent/buy a property offered/inspected through them.


Before using these forms, don’t forget: 

  1. Replace [Your Company Name] with your company name. In Word it’s CTRL+H or see how to do it here.
  2. Update your commission terms if they are any different.
  3. These forms are not copyrighted so feel free to modify and distribute it as per your requirement.

How to use these forms?

  1. Save these formats on your smart phone.
  2. When a property seeker reaches out to you, find out if they need a commercial property or residential.
  3. Take their email id.
  4. Email them the relevant format and request a reply. Post which (only) begin servicing them.

The reason behind 95%?

We have tried this format to avoid commission problems with buyers and here’s our result:

  1. 95% agreed to our terms
  2. 3% negotiated the commission rate
  3. 2% did not sign and we did not service them.

You might still have a few doubts about Why will this work or questions like what if clients agree to only half your commission rate or what if they confirm but don’t pay up? All these questions have been answered in the earlier post under Other Questions. Click on the link for answers to these questions.

If you are convinced and would like to try this out, download the forms in Word format by clicking here. If you are not convinced, please tell me why using the comments below.

Realtors, avoid commission problems with buyers 95% of the time using this simple idea

One thought on “Realtors, avoid commission problems with buyers 95% of the time using this simple idea

  • February 11, 2016 at 05:36
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    Consumers deserve to fully understand what all of their options are and how the confusing Realtor commission system works. With this information they can make the best decision for their needs. Whether it be flat fee or Discounted full service, average full service,  or regular full service, but hopefully avoiding crappy full service.

    Reply

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