The most common reason agents reduce their commissions is they are unable to show how their services will help the seller net more, even if they list at a full commission, as compared to agents who cut their commissions to get the deal.

If you’re working in a market where listings are selling quickly with multiple offers, you may be tempted to cave on your commission because the market is so strong. Don’t do it and here’s why. The fall out rate, rather than being 10 percent, which is typical, can be as high as 40 percent or more when there is a multiple offer. The reason? When people pay over asking in a bidding war, they often get cold feet later.

If you need some additional motivation, here’s how much you’re leaving on the table by lowering your commission from six to five percent. Assume you take 15 listings per year at an average sales price of $300,000 and that you’re on an 80-20 split.

• At a five percent commission (2.5 percent on the listing side), your commission will be $90,000.
• At six percent (3 percent on the listing side) your commission would be $108,000.
• The difference between five and six percent costs you a whopping $18,000!