The fee optimisation playbook: How to charge more without losing listings

Real estate agents often worry that increasing their fees will drive clients away. But the truth is, most sellers don’t choose an agent based solely on price, they choose an agent based on value. The key to optimising your fees isn’t just charging more; it's ensuring sellers see why you’re worth it. 

This playbook will show you how to structure your pricing, position your value and use proven psychological techniques to charge higher fees without scaring off potential clients.

The psychology of pricing: How subtle changes can boost your revenue

Pricing isn’t just about numbers; it’s about perception. Small tweaks in how you present your fees can make a huge difference in how sellers respond. Here’s how to make your pricing work in your favour. 

1. The Power of Anchoring: Setting the right price perception 

How it works: People compare prices relative to a reference point (anchor). Setting the right anchor ensures sellers view your fees as reasonable. 

How to use it: 

• Showcase your premium package first, even if they don’t pick it, the premium package will make the standard package feel like a better deal. 
• If offering a special deal, always list your usual fee before discussing any discounts. This ensures clients see the higher price first and perceive the discounted rate as a bargain. 

2. The Decoy Effect: Nudging sellers toward higher fees 

How it works: When given three pricing options, most people choose the middle one. Adding a "decoy" tier encourages sellers to opt for a higher fee than they otherwise would. 

How to use it: Offer three service levels: 

• Basic – Minimal marketing, lowest price ‍
• Standard – Full marketing package, best value ‍
• Premium – VIP service, high price but less popular 

Most sellers will choose the middle option, increasing your average fee while making them feel they’ve made a smart decision. 

3. The Confidence Premium: Why higher fees attract better clients 

How it works: People associate price with quality. Low fees can make sellers question your expertise and the level of service you provide. 

How to use it: 

• Frame your fee as an investment, not a cost: “Our fee ensures maximum exposure and premium buyers, leading to a higher sale price for you”
• Use social proof, share client success stories and testimonials to justify your pricing 
• Avoid apologising for your fee. State it with confidence and focus on the results you deliver.

4. Loss Aversion: Making clients fear the cost of a bad decision 

How it works: People hate losing money more than they like gaining it. Highlighting the risks of choosing a cheaper agent makes your fee seem like a safer bet. 

How to use it: Instead of justifying why your fee is higher, explain what sellers risk by choosing a lower-cost agent: 

• Longer time on the market = Lower sale price ‍
• Cheaper marketing = Fewer buyer enquiries ‍
• Inexperienced agents = Poor negotiation = Lost money 

By shifting the conversation from “why we charge more" to "what you risk by paying less", you make your fee seem like the obvious choice. 

5. The Framing Effect: Changing perception without changing price 

How it works: The way a price is presented influences decision-making. Changing the way you talk about fees can make them seem more reasonable. 

How to use it: 

• Instead of saying "Our fee is 1.5%", say “Our fee is just £4,500 to sell a £300K home, far less than buyers will negotiate off a poorly marketed property" 
• This shifts the focus from percentage-based fees to value and return on investment

Simple tweaks to your pricing presentation

• Use visual comparisons to show the difference in exposure between your service and a cheaper competitor 
• Highlight past sales where your marketing led to a higher price than expected 
• Provide a clear breakdown of where the fee goes: professional photography, premium listings, targeted advertising, etc. 

Scripts for overcoming fee objections: 

When a seller questions why your fee is higher than a competitor’s

“I completely understand that fees are a big consideration. But our fee isn’t just about the cost, it is about what you get for it. Our marketing strategy attracts more buyers, which means stronger offers and a better final sale price. A cheaper agent might save you a small amount upfront but could cost you thousands on your final sale price.” 

When a seller asks for a discount

‍“I appreciate that you want to get the best deal possible. However, our fee reflects the service and results we provide. We consistently achieve above-market sale prices for our clients because of our expert marketing and negotiation. Cutting the fee would mean cutting back on what gets you the best outcome, and I wouldn’t want to compromise on getting you the best price for your property.”

When a seller says another agent has offered a lower fee for the 'same service'

“I understand that fees vary between agents, but I’d encourage you to look beyond just the percentage. The level of marketing, negotiation skills and overall service can differ greatly. Our tailored strategy ensures maximum exposure and the best possible sale price, saving you from accepting a lower offer just to move the property. Would you rather save a small amount on fees or gain thousands more in your final sale price?”

A framework to test fee increases

1. Test small increases first: Try raising your fee by 0.25% and monitor response rates ‍
2. Adjust your presentation: If sellers push back, refine how you explain your value ‍
3. Gather feedback: Ask potential clients what influenced their decision and adjust accordingly ‍
4. Refine and scale: Once you find the sweet spot, roll out the increase across all listings 

Alternatively, download our free, printable Fee Testing Worksheet to put this framework in action within minutes.

Here’s a script to help you introduce a fee increase to potential clients:

“Over the past year, we’ve refined our marketing strategy to ensure even stronger results for our sellers. With our professional photography, targeted social media ads and proactive buyer outreach, we’re consistently achieving higher sale prices. Because of this, our fees have increased slightly to reflect the added value we provide. However, our sellers find that this investment pays off significantly in their final sale price.” 

Conclusion 

Raising your fees isn’t about overcharging, it is about making sure clients see why you’re worth it. By using strategic pricing techniques, framing your value effectively and giving sellers confidence in your service, you can charge more without losing listings. 

Start implementing these strategies today and watch your revenue grow, without increasing your workload.