My opinion of this is if they are already asking if you take a 5% listing then they have already talk to a few other real estate agents and either been told 5% or more. They feel as though this 5% listing with a no name type company doesnt benefit them so they are checking with the known name companies to see if they will match it. I also believe that the market conditions will dictate this as well.
I would set the appointment go in show them what you have to offer and give them a range of listing fees and programs you offer. I believe you get what you pay for. Cheap isnt always the best and I would try to relay this to them. If you feel they are balking at the higher listing fee, then work out a deal with them if you want that business bad enough.
Once again IMHO, once you become known as a discount listing agent, everyone that calls you will want a discount listing fee. You need to have a structured business plan in place to justify the fees you charge and an explanation of why you charge them. Meaning what value do my clients get for me charging this and what are the extra benefits.
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