KW Maps Coach Craig Goodliffe offers strategies for commission conversations

On this week’s episode of the RealTrending podcast, we are joined by Craig Goodliffe, KW Maps coach and the founder and CEO of Cyberbacker, a company that provides administrative support and virtual assistant services to real estate firms.

Craig and Tracey talk about the misconceptions and misinformation plaguing consumer perceptions of commissions, the commission lawsuit and subsequent settlements, as well as strategies for agents to engage in transparent commission conversations with clients. They also discuss opportunities in the market and industry and the significance of education and financing options.

Here’s a glimpse of what you’ll learn:

• Consumers and agents are confused about the settlement and how commissions are paid.
• Agents should accurately explain the value of commissions and their services to buyers.
• Buyer agents should focus on understanding client needs and setting clear expectations. Listing agents should emphasize the benefits of higher commissions in attracting more buyers.
• Agents should educate themselves on financing options and affordability to better serve their clients.

Here’s a small preview of today’s interview. The transcript below has been lightly edited for length and clarity:

Tracey Velt: I have never heard of commissions being baked into a price of a home. The price of a home, it’s supply and demand. It is the market setting the price. And so to me, that’s a great explanation to a consumer as well.

Craig Goodliffe: That’s exactly right. The seller doesn’t choose the price of the home. The buyer does. Yes, the seller sets the commission, but the home sells for the price the highest buyer is willing to pay. And sometimes, to that that seller, it’s worth far more than it is to any other buyer. So the buyer sets the price of the home. It has nothing to do with real estate commissions.

Tracey Velt: I think most sellers think their house is worth a lot more. As a homeowner, I would feel my house is worth a lot more than maybe the price that I could actually get.

Craig Goodliffe: Well, isn’t it true that things that we as humans are more emotionally attached to have a higher value for us? And that’s true with a home, it’s true with a family member, it’s true with a lot of different things, there’s nothing wrong with it. Someone else just isn’t as emotionally attached as you and that’s okay.

The RealTrending podcast features the brightest minds in real estate. Every week, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.