Buyer is asking for credit from my commission

[Amanda Lauren Brekke]

Hello, Newer Realtor here. I currently have a listing and a buyer came to me with no agent asking if I'd represent him if I were to give him a 1% credit of my commission. CA commission is 5% total, 2.5% per side. He tried to pitch to me that it would be better for me to make 4% instead of just 2.5%, and that this is a reasonable arrangement. I gave thought to this arrangement and had to politely decline. Yes, I would be making more commission, but I didn't feel ethically comfortable taking more money from my seller and turning around and giving it to the buyer. If any discount commission was to happen I believe it should go to the seller. Again, I'm a newer agent and this would have been my first dual agency and would love to hear your opinions on the topic. I feel that I made the best choice for myself, you may agree or disagree I'm really looking to hear all sides. Thanks for reading!

[Patricia Steiner]

Would the client ask his lawyer to discount his fee?  His CPA?  Bet not.  When you discount the commission, you discount your perceived worth to the client.  I recommend stopping the conversation by stating that you "do not subsidize real estate transactions."

I also recommend setting up the initial conversation with prospects in such a way that this door isn't open in the first place. Demonstrate your expertise and state your commission without hesitation or explanation.  If you've ever hired another professional, it's very early in the conversation that the "my hourly fee is $350 hour with a $1500 non-refundable retainer."  Not an ounce of "does that sound okay to you" in it.  

Sometimes the client you don't get is the win.  Value yourself and expect nothing less from those you represent.

Best...