How to Answer "What's Your Commission?" Without Flinching

Picture this. You're at a listing appointment and it's going great. You've built rapport, toured the home, and talked through the plan. Then the sellers look at you and ask, "So, what's your commission?"

How do you react? If you feel that knot in your stomach, you're not alone. On a recent Tuesday training, Mike Pillow from our team and I talked through how we handle this conversation.

First, a ground rule we follow on every training and that I'd encourage every agent to follow in public. We don't talk specific numbers. If you need to describe a fee, just say "X." I charge X. The seller wanted less than X. How any of us charges is our own business.

It's not an objection unless you make it one

Most agents hear the commission question and immediately treat it like an objection. That's the mistake.

I call it a buying question. If you're at a shop with no price tags and you ask what something costs, it's because you're interested in buying it. When a seller asks about your fee, they're interested in what you offer. That's good news. Talk about it.

Mike Pillow's view is that it only becomes uncomfortable when we make it uncomfortable. When we dance around it, say "don't you worry about that," or throw out "commissions are negotiable" and quickly change the subject, we create the problem ourselves.

Bring a net sheet

When sellers ask about fees, what they usually want to know is how much they'll walk away with. So bring a net proceeds estimate to every listing appointment.

Mike's explanation is the best one I've heard: after all fees are paid, this is what you're walking away with. Make it clear it's an estimate, since you don't know the final price, closing date, or title company yet. And say why you're showing it: "I'm pulling this out because it answers the question you just asked me about my fees."

Know your number and say it

Fill in your commission on that sheet, and have a direct answer ready. "I charge X, and here's what you get for that."

The more you over-explain, the more you turn a simple question into an objection. And as Mike says, if you can't sell your own value, why would a seller trust you to sell their house?

Many sellers ask partly as a test. If you get wishy-washy negotiating your own fee, how will you negotiate for them?

Stop negotiating against yourself

I hear agents say, "Normally I charge this, but for you it'll be that." Nobody asked. You just discounted yourself before the seller said a word, and you told them you don't value your own service.

Mike uses a car dealership comparison. A Cadillac salesperson doesn't apologize for the price. They explain what you get: this feature, that feature, and why it's worth it.

The takeaway close

If a seller pushes for less, take the Cadillac example one step further. You want all ten features but want to pay less? Great. Which features would you like to remove? Most people want them all.

You can even say, sincerely, "There's actually a way to pay zero listing commission. Would you like to know what it is?" Sell it yourself. Or hire a flat-fee service that only gets you into the MLS. Those are real options, and I'm not here to say they're wrong.

Then walk through what they'd be giving up: your marketing, your buyer network, your negotiation, your service. Not everyone wants the Cadillac, and that's fine. But I've seen plenty of sellers skip the cheapest option and choose the agent they trust most. It's the difference between price and value.

Watch your words

Avoid saying any commission is "standard," "normal," or "what everyone pays." That kind of language is exactly what got the industry into trouble. If you stopped 100 people on the street and asked what it costs to sell a home, most would give you the same answer, because as an industry we taught them that.

Your fee is your fee. The buyer agent fee depends on the situation. When you show a scenario on a net sheet, say so plainly: "This number could be anything. I filled in one example so you can see how it works."

Explain buyer agent compensation the right way

Sellers paying buyers' agents was never mandatory, and it still isn't. But it often benefits the seller, and your job is to explain why.

It's not about encouraging agents to show the home. It's about buyers. Many buyers have saved enough for a down payment and closing costs and nothing more. If they also have to pay their own agent, some can't buy at all. Mike calls it a marketing tool, like a new roof or furnace. It opens the door to more buyers, and more buyers means more competition and a better chance at a stronger net.

I also believe in letting buyers' agents know up front, outside the MLS, that the seller will consider paying them with an acceptable offer. Some agents disagree and prefer waiting for the buyer to ask. If your seller chooses that route, set expectations: their best offer may come from a buyer who asks them to cover their agent.

These conversations get easier with practice

Listening to Mike and me talk about this, none of it sounded hard. The problem is that most agents don't practice these conversations, so they fumble when they're on the spot.

The fix is reps. Mike and I run a roleplay session on Zoom every Saturday at 8:30 Eastern, open to agents from any company. Mike will tell you he was the worst when he started and kept showing up every week. That's the whole secret. We also run in-person listing presentation workshops, so watch our Facebook page for the next one.

Email me at mike@21mike.com and I'll add you to the roleplay invite. And if you're an agent thinking about joining a team, we're growing across Ohio, including Columbus, Toledo, Youngstown, and Cincinnati.

Want to see the full session? Watch our Tuesday training on commission conversations.

Mike Ferrante
The Mike Team at LPT Realty
www.21mike.com
Google Business Profile: https://g.page/r/CSQoYzel0Z68EAE
+1 (216) 373-7727