Dirk Zeller of Realty Times really nailed this one when he addresses 2 main problems in his article “Why Prospects Object to Your Commission Rate”. They are:
The two reasons are: we haven’t established value for our service, and the seller or buyer has a fear that we haven’t addressed properly to remove it.
These are critical. Discounts don’t always sell your service, but they always reduce the amount of money you could have made. Especially with inexperienced buyers. For me, it is all about saving money. But then again I have bought several houses in the past, I know how it works. But many, if not most, buyers don’t. So as an agent, you need to find out what is holding them back, and make sure you justify the fee for your service.
Bottom line, just be honest with them, try to find out and address their needs and wants, and you’ll be on your way to great success in real estate.