It's 9:00 in the morning, bright and early for a hardworking real estate agent like you. You're sipping your morning coffee reviewing the latest hot sheet, when the phone rings. Slightly irritated, you set down your cup of sludge and pick the phone.

Prospect: "ABC Real Estate this is Bob how may I help you?"

There is a slight pause, and then comes the bombshell question - "How much do you charge for your commission?"

Hey, you have a live one here! This is someone who obviously has some interest in listing their property for sale and who knows maybe today is your lucky day! Your heart skips a beat, your hand trembles slightly, and suddenly your at least four cups of coffee perkier!

Agent:"We charge (X) ……"

Slum dunk, that was easy, next question please!

Prospect:"Yeah, Discount realty said they would do it for less!" Cue dialtone. Game over. You lose.

What just happened? This is a classic pitfall that every agent in America will fall into at some point in their careers. Let's call it by name – Bad Answer Syndrome. It doesn't just happen over the phone, either - it can happen at anytime, in person, by email, or even by Fax.

Now in this case why is giving the commission your company charges over the phone a bad answer? Because that answer, even though it is accurate, provides a potential client with a reason to reject you or what you are offering. Remember clients are rejection machines they intuitively know that because of the massive amount of choices they have available to them they must quickly eliminate as many choices as possible as quickly as possible. To accomplish this goal clients often consciously or even subconsciously employ what are called elimination questions.

It would seem like we are in a catch-22 with these kinds of questions. After all how can you not answer a direct question like – "What do you charge?" The answer may be easier than you think, all though, it may seem a little unnatural at first. To answer an elimination question, ask another question.

Huh? Let's take a look at how this might work in the real world:

Prospect: How much do you charge?

Agent: Where is your home located?

Now you have immediately taken control of the conversation. How did you do it? By asking a simple question, always remember to take control of any conversation at any time just ask a question.

Prospect: 123 Main St, Anytown…

Agent: That's a great area! How long have you lived in the home?

Prospect: We have lived here at 7 years. Now what does your firm charge?

Agent: Before I can give you a quote I need to set an appointment with you to take a look at your home. Would today be good or would tomorrow be better?

Remember the old adage – You can't list a house over the phone? Your number one goal must be to set an appointment. Every home is unique, and although many offices may have a minimum fee structure most offices will allow you to charge more if the situations merits it. For instance what if the home is outside of your normal service area, or the seller is demanding crazy marketing, or the home is in extremely poor condition? All of these issues can affect the commission structure.

Jim Remley is a speaker, author, and consultant. He is also an active real estate broker in Southern Oregon where he owns a network of eleven offices. Jim is the author of the upcoming book – The Earning Curve – How to Earn a Million Dollars Selling and Investing in Real Estate due out in 2005 from AMACOM. Recently he won the 2002 and 2003 Pacesetter Award from RealtyU, the largest network of real educators in the nation. Jim is the author of an extensive catalog of products as well as a personal coaching system to learn more about Jim please visit www.properformer.com or email him at jim@properformer.com.

Published: October 11, 2004

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Jim Remley is a speaker, author, and consultant. He is also an active real estate broker in Southern Oregon where he owns a network of six offices. Jim won the Rookie Instructor of the Year award in 2001 from Realty-U, the largest network of real estate educators in the nation. He was the winner of the 2002 Pacesetter Award, and nominated for the Real Estate Instructor of the Year Award during the first quarter of 2003. To learn more about Jim, please visit ProPerformer.com or e-mail him at .