Did you develop your material on your own is the material from the ad agency?

We do have a "sliding scale" from 5 to 5 1/2 to 6% on what we'll do.  The services vary from a home warranty to a visual tour to paying for smoke and CO detector installation and inspections (there are a few others).  I honestly don't pay much attention.

Depending on how much I'm potentially netting out of the transaction, I personally decide what I'm going to do.  I always do visual tours, if possible (some properties just don't lend themselves to visual tours) -I take my own pics and do my own tours-we have the software and I know how to use it-this is a "feature" of a higher commission.  

I generally find that the going rate in our area is 5% and that this is a "bone of contention" for many Sellers.  Why should they pay me 6% for a visual tour (or some other "feature"), when XYZ will do all of this for 5%?  I don't find that there's any "added value" there from the Seller's perspective.

It's hard enough to get Sellers to price their homes properly, I don't want to get into the higher commission and how it will benefit them.  The difference is almost negligble. You may call this lazy and that's fine, but pricing is my priority.  If I can't sell it, I won't even make the 2.5 on a co-broke.  I prefer to spend my time on pricing it right and getting it sold!

When I do a listing presentation, I initially present a commission that is higher than the normal. I explain I would like to aggressively market their home and this is what I charge to do that. Some accept this, some do not. If they refuse that "premium level". I then present the normal rate. I never agree to a discounted rate. I explain I can not provide the level of service they deserve at that commission. Thus, my commission is always negotiable, but there are levels I will not stoop to.

My commission is always negotiable, but I don't do levels of service in writing.  If its written down, its fixed and not negotiable anymore.  When I first meet with the seller I find out as much about them and the property as possible and then quote them a commission percentage.  Then they either accept it or we negotiate about marketing and advertising services, time (length of the contract), lockbox, etc.  I tell them what I will do and what I won't do.  Once we come to an agreement, it all gets written down in the listing contract.  Most of the time its full service for 6%-7% (residential) or 8%-10% (land or commercial).  Residential part service can be as low as 4.5%.  Land or Commercial part service can be as low as 6%.  Again, if I had a written menu or schedule to begin with it would just be pick and chose instead of negotiable.  I believe both my client and myself come away more satisfied this way.

I use a menu system that includes:

A  4.75 (basic marketing)

B  5.75 (more traditional marketing)

C  6.75 (high end including paying for a HOW and an inial consult with a home stager as well as offering a 3.2% co-op to other agents)

60% of the time they choose B

15% of the time they choose A

25% of the time they choose C

The higher commission isn't as hard as you'd think because by the time I explain to them I really don't make any more money but rather spend more money on marketing and preparing their home.  The co-op also brings in more showings.  My higher end sellers agree with this concept and once they see all of the additional tools used to market their home (about 10 including podcasts and free moving boxes) they want those things.  Sometimes they try to negotiate the C services for the B cost but I don't do it.

I have only started using this in 2007 and it seems to take away the question of trying to beat me down on commission.  Basically they get what they are willing to pay for and I don't go broke marketing the heck out of lower commission properties.  I don't even hold an open house on those properties but it's NOT discount service.  They are still getting everything that the majority of other agents offer (which is pretty basic in my book) as well as fudiciary duties.  I just don't have to reach as deep on marketing costs.

It's still a work in progress but so far I like it.  I will likely tweak it at the end of the year and add/subtract those things that weren't of value.

I've mentioned to people recently and haven't had anyone take me up on the lower commission yet.

Please don't talk about commission.  

Ginger, You could change your menu to "Door #1", "Door #2" or "Door #3"....just a thought :)

My broker has three or four various business models.  The service is not much different, since he still advertises and does all the normal things. His purpose was to compete with the discounters, he has gotten a few listings in  a years time.  Same company logo and all but different ads 2499 if the company sells it and split with selling agent if not.  It's hard for me to turn any business away, unless it's over priced and I think he sees it the same way.

Please remember when agents are sharing %'s that the price range of home varies drastically by market. In a market where the average sales price is $150,000 vs. $500,000 %'s will vary there too. Keep all of that in mind when sharing this type of thing. Also every market has different time on market. If you have to market a home 90 days vs. 30 days.

Great information!  And I concur;  Our company bases our commissions on what kind of expenses we are anticipating to properly market and sell a property as quickly as possible for the best price and terms for our client, and at times if the client wants less service, we can accommodate.  But not always.

MaryAnn....I understand your reservations in open discussions, but this is an "open forum" (yes, open to us AND to the public), and no one, you included, should try to stifle these exchanges of information.

First of all, and foremost, it is educational for the participating Realtors herein.  I find extreme value in these threads; seeing what is working or not for others in various areas of the business.

Secondly, perhaps the public will see these comments, and the comments in the many other threads at REliberation and understand that our business is just like their businesses; nothing is cut and dried.  

Universally, business is an art, not a science.

The truth will set you free.

Bill, I like your thinking.  Actually I don't call it A, B, C to sellers I just used it for posting here.  I use something more creative.  Originally I was going to use bronze, silver and gold but I switched it to Cottage, Estate, and (oops I can't think of the top level right now).  

And regarding discussing commissions.  I don't think this falls into the category of price fixing, etc.  You can do it however you want.  And at the end of the year I will re-evaluate and see if anything needs to be changed based on costs and popularity.  I'm one agent, that's how I do it.  You can do it however you want.  

My purpose was only to offer some creative ideas for other agents, not to suggest you needed to charge a certain commission.  Besides, my menu is not a secret.  I'm pretty open about what I charge and justify it with services!

Marcia and I thought about doing that after hearing the idea from a very successful agent.  It took the guess work out of services and costs.  But this was also a time that all you needed to do was put a sign in front of a home and it sold that week.  You were lucky to get a just listed post card out before you needed to send the just sold, much less print ads or anything else.

Now that we are in a normal market place and it takes the big bucks to market a home properly, not sure the lesser service would do the trick.  Instead Marcia and I have given our clients a written guarantee that we will do everything on our marketing and service plan or they can fire us.  We are guaranteeing they are getting their money's worth.

Jana