Fee Pressure? Here’s How to Hold Your Ground

I spoke with an agent recently, and they told me of a scenario most of us are all too familiar with…

Their high-performing team recently sold a property for a suburb record. It was a massive achievement and the result of teamwork, a full campaign and truly outstanding service from everyone involved.

There they were excited about the outcome, when the seller asked them to reduce their fee.

Ouch!

A total kick in the guts

Regardless of how good a job you do, there will be occasions when clients ask for a cheaper rate, and they may do so even if you’ve achieved an outcome beyond their wildest dreams.

It happens, and it sucks.

You’ve put in the work. You’ve led the process. You’ve delivered (and then exceeded) the outcome.

But the moment they ask for a discount, it’s like none of that counts. It’s a real kick in the guts.

Don’t take it personally

Here’s the thing…Some people just have it in their DNA.

They ask for a discount at every restaurant, with every tradie, at every shop counter. It’s how they see the world. They only feel like they’ve won if someone else loses.

And honestly? That’s a sad way to live.

In business and sales, it’s an unfortunate part of the job, and it’s unlikely to change anytime soon because the reality is, we’re dealing with human behaviour.

So don’t take it personally. But I get why you would. After all, you tried your very best. And that’s a good trait, so don’t beat yourself up for it.

But that’s the other layer to this, and it’s the one that matters most.

What message are we sending?

When we accede to a request to drop our fees, it’s important to consider the following question: What message are we sending to our team?

When someone asks to reduce your fee, they’re not just questioning the result; they’re questioning the process.

They’re saying your team’s work is negotiable, that your care is cheap, that hard work should be discounted.

But it shouldn’t be. Because if we don’t back our value and our team, who will?

Not every request deserves a yes

Yes, when it comes to talk of fees, there are moments to use discretion. There are clients who genuinely need flexibility, and not every client sees the full picture.

But not every request deserves a yes. So how do you hold your ground? Well, if you’re under fee pressure, here are some tried and trusted scripts to say no with class and confidence:

1. Mr and Mrs Seller, I sincerely appreciate the request, and while I’d love to accommodate it, it’s not a business practice we can financially or ethically support. Our service fee reflects the work and value we bring, and our current and past clients have chosen us because of it.

2. Putting the fee aside for a moment, are you happy to engage in my services? Do you believe I’ll protect your home from buyers trying to negotiate you down? (yes)

Then let’s not start our relationship by doing the same to our service. My team and I only get paid once we bring you a result you’re happy to move forward with. Until then, we work without payment. We can’t be fairer than that.

(And should we fall short of that promise, we can have a discussion about the success fee then.)

3. Mr and Mrs Seller, I truly appreciate your position, and while there are plenty of cheaper options out there, we’re focused on getting you the best result, not the cheapest process.

Our past results show that the extra $10k, $20k, or more that we can extract from a buyer often makes us the most cost-effective option in the end.

(Provide case studies to back your claim.)

4. Mr and Mrs Seller, the biggest mistake a vendor can make is putting the right buyer in front of the wrong agent. We’ve seen it countless times - agents leaving money on the table because they lacked the skillset to extract the full value from the market. The cheaper option ends up being the most expensive.

(Provide case studies to back your claim - you can use this to also combat 'Off Market Sales' and bring on sellers with full campaigns.)

Don’t let it affect you

While requests to reduce your fee can sting, don’t let them taint your faith in the majority of clients who love what you do.

Don’t let one negative encounter cast a shadow over all the clients who refer you, back you, rave about you to their family and friends…And who gladly pay you your agreed fee.

This is where mental toughness is needed, and also a reminder…these situations don’t get easier. You just get better at handling them.

About the Author

Manos Findikakis is the CEO of Agents’Agency, Australia’s first multi-brand real estate network, ‘the only fully integrated solution for you and your people to create an unforgettable experience.’

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