We have all heard the term “bully pulpit.” A speaker, politician, celebrity, etc., uses the privilege of their position to make a speech that fosters their personal agenda or cause celeb.

Perhaps you will feel that this article is nothing more than a writer getting up on that bully pulpit; but you would be wrong. Why? Everyone who calls real estate their career is affected by the dwindling real estate commission. My passion is not mine alone nor is it about a cause that I championed. I no longer earn my living from real estate sales. However, many of my old and dear friends do, and they are hurting as a result of “commissionectomies.”

I live in the affluent area of Fairfield County, CT. The average home price is equal to the national debt of many a small nation. We have seen commission-cutting occurring for years. Right now the “average” commission varies by two or more percentage points from office to office and agent to agent. Keeping in mind that we do not fix commissions, there are percentages that become the standard for this or that company at any given time.

Trying to convince agents that they are worth their salary is harder than one might think. I often find myself believing in the agents more than they believe in themselves. If one approaches a seller with trepidation and hesitancy when it comes to standing up for the money one feeds, clothes and houses their family with, why would the seller not recognize the chink in the armor and go for the jugular? It beats me...

Take a look at agents in the Buffalo and Albany areas. Many are still getting 7 percent commissions on a regular basis. I just finished two training classes in those areas, and I am here to attest to the fact that it is the truth. When they hear of agents working for 1 and 2 percent, they are stunned.

Is it fair to point out that the average price in those areas compared to our area is significantly lower? I guess it is. One need only close ten transactions here to equal perhaps 20 there. But is that the issue? I think not. The agents living here are required to earn enough to remain living here and vice versa. It’s all relative.

There are any number of great real estate trainers/programs who have programs designed to help agents overcome commission cutting objections. Agents need to master every objection handling technique they can! The more they know, the better chance they have of convincing a seller that paying their full salary, or forgoing certain services in exchange for reduced commission (unbundling of services,) is in the seller’s best interest. The sad part is so many agents have simply quit even trying. The truth is that the effort often gets you further than what you say. Doing something, as opposed to nothing, is key.

Write this quote down and live it. You can’t defend your present position and expand at the same time. Willingness to make the effort, hone your skills, upgrade your standards and adopt a complete belief in the profession of real estate are the necessary steps in combating commission wars.

Published: June 20, 2003

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Marylyn B. Schwartz, CSP, is a noted expert in real estate and corporate sales training, team development, customer care and diversity issues. She is president of TEAMWEAVERS and a trainer for Leader's Choice, the number one real estate sales training program in North America. Marylyn is also an author and Business/Life Coach. Contact her at , or visit her website at teamweavers.com.