February 28th 2024

How to Talk About the Commission Lawsuits with Sellers.

The commission lawsuits have become a controversial subject in the real estate community. Agents often find themselves in the crosshairs of these discussions, facing dilemmas about how to respond effectively to clients' concerns.

Needless to say, the topic of commission lawsuits has become a hot-button issue. It's essential for agents to not only understand the legal landscape but also to effectively communicate and manage their clients' concerns regarding these lawsuits. It's time to move beyond reactions and adopt proactive strategies to manage these situations.

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Understanding the Legal Landscape

The real estate industry is currently facing significant legal scrutiny, particularly concerning commission structures. It's necessary for agents to stay informed about the legal landscape and understand how these lawsuits could impact their practices.

We must use proactive measures to take control of what we can rather than reacting to what we can’t. The first step after educating yourself is to educate your clients. 

Educating Your Clients

Educating clients as a real estate agent is paramount for fostering informed decisions and building trust throughout the buying or selling process. By attentively listening to client concerns, agents can address uncertainties and provide transparent explanations, instilling confidence in their expertise. 

Speak about market dynamics, including the impact of offering a buyer's agent commission. Enable clients to grasp the strategic advantages of their decisions, such as enhancing a property's competitiveness in the market. Illustrate how offering a buyer's agent commission makes a property more competitive in the market.

By educating clients on the complexities of real estate transactions and the value of professional guidance, agents can alleviate concerns and reinforce the importance of their services

Building Trust and Communicating Value

A fundamental step in addressing commission lawsuits involves establishing trust with clients. Agents must demonstrate their value and expertise, ensuring that clients recognize the benefits of their services. 

Initial consultations are pivotal. Agents should engage in comprehensive discussions, addressing client concerns and expectations. This step is foundational in building trust and understanding, setting the stage for a smooth collaboration.

At the heart of the issue is the need for transparency and trust between agents and their clients. This involves clear communication and education about the role of agents in real estate transactions. Use initial meetings to build rapport and trust, addressing any concerns upfront.  Provide comprehensive information before meetings, including market plans and value propositions.

By fostering a transparent relationship, agents can build trust, which is paramount in overcoming objections related to commission fees.

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Handling Objections and Questions About Commission

Agents must adopt a consultative approach, emphasizing their role as advisors. They should present themselves as partners in the selling process, guiding clients with their expertise while respecting their autonomy in decision-making. 

Before the actual listing, agents should prepare clients through education and discussions about the real estate process. This involves explaining the value of their services and the importance of fair commission structures. This can assuage clients and even prevent questions about commissions from ever coming up. 

When faced with direct questions or objections regarding commission, agents should be prepared with well-crafted responses. Prepare responses that are informative but not combative, reinforcing your role as an advisor. Remember to clearly articulate the structure and flow of commission fees.

For example, here is a response if a client has a question about a buyer’s agent compensation:

“I can understand why you would ask that question. Providing buyer’s agent compensation is about making your home competitive in the market, so that it attracts buyers with highly qualified agents. 
Most deals fall apart because of an agent’s inability to guide their client. If a buyer has an unskilled agent or no agent at all, the likelihood of the deal falling apart is a lot higher. And when that happens, we have to relist the home. 
But future buyers think there’s something wrong with the home, even though it’s the buyer agent’s fault. Those future buyers want concessions in the form of a lower price.
Do you see how not compensating the buyer’s agent could result in you not getting your home sold for the price and timing you want?”

The client will reply with a yes or have other questions. Then you can give them the option, because it is ultimately up to the seller:

“As your advisor, I strongly recommend we offer X%, but can offer lower. However, I want to reinforce the risk of not achieving your objectives. But since I work for you, it is ultimately your decision.”

Let the client make the decision, then you can ask if they have any more concerns or if they are ready to get started.

By educating clients on the complexities of real estate transactions and the value of professional guidance, agents can alleviate concerns and reinforce the importance of their services.

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Embracing Your Role as an Advisor

In these turbulent times, the role of real estate professionals has transformed significantly. It's not just about selling properties anymore; it's more about becoming trusted advisors for clients. So, how can we bridge this gap?

Asking Better Questions

To begin with, asking better questions is key. By posing more probing inquiries, you can gain a comprehensive knowledge of your customer's requirements and situation to ensure that their needs are fully met—which also helps foster trust between the two parties.

This isn't just beneficial in helping them find the perfect home or investment property—it also builds trust between you and your client because they know that you truly understand what they need.

Sometimes it could necessitate asking questions such as 'Do you have any fiscal boundaries I should be aware of?' or 'What are some indispensable elements for your ideal abode?'. But remember—the goal here is not to pry but to provide comprehensive assistance tailored specifically towards each individual client.

Providing Accurate Information and Guidance

Beyond just understanding our clients' needs though—we also need to make sure we're providing accurate information. This could include everything from market trends and property evaluations to financing options available on the market.

But let me tell you—there’s no such thing as ‘one-size-fits-all’ in real estate. What works well for one person might be disastrous for another due simply to different circumstances or preferences. So instead—let us focus on guiding our clients based on their unique situations by presenting all possible scenarios along with their potential benefits and drawbacks so they can make informed decisions themselves rather than feeling pressured into anything.

We’ve personally found that giving our clients full control over the decision-making process, while providing all necessary information and guidance, always leads to happier clients in the end.

And remember—happy clients are more likely to recommend you to their friends and family, which can ultimately lead your business towards a path of exponential growth. Let's strive to be more than just real estate professionals for our clients—let's become trusted advisors who they can rely on for sound advice.


Handling commission lawsuits effectively is all about building trust, providing education, and maintaining transparency with clients.  By understanding the legal landscape and engaging in effective communication, agents can build trust with their clients and reinforce the value of their services.

As real estate professionals, it’s our responsibility to guide our clients through these complex issues with confidence and clarity. Remember, you're not just an agent; you're an advisor who navigates these challenges alongside your clients.

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