Yes, trading the commission of the publicly traded broker is the most prudent path because doing so will not affect their ability to attract the attention of buyers' agents. However, the publicly traded broker may be willing to receive a reduction in their fee, as there are additional benefits of having an exclusive quote.
Real estatecommissions are absolutely negotiable. Real estate agents are independent contractors and, although they may be tied to paying a certain amount to their broker, they generally have some flexibility in what percentage they can charge.
Just as you may have bills that you need to cover in your rental investments, such as real estate agents, you can still set your own monthly rent on your properties. Lowering them simply reduces the amount of profit you make on the trade. Often, yes, there is a little room for negotiation. As you prepare to list your house for sale, you may meet with some sales agents to find the right one for the job.
Ask each agent about their commission rate and what exactly you'll get for that price. Consider not only how the agent plans to market your home, but also your ability to set prices, experience, resources, and track record. The seller is not required to offer a commission (or to a partner) to the buyer's agent. However, most brokers won't accept your quote if you don't because it makes their job much more difficult and will likely result in a lower price.
Many people who enter the market to buy or sell a home don't know that real estate commissions are negotiable. Regardless of local customs, real estate rates are generally not immovable. Agents expect to be negotiated with them, and some could agree to a rate reduction right away. Real estate agents list homes and share properties with other agents in the MLS, helping their clients sell or find a home.
In order to mobilize the buying agent community to sell your listing, almost all sellers offer to pay a commission to the buyer's agent. The good news is that commissions are fully negotiable, especially if you're a real estate investor who frequently buys and sells properties. If you think your sale qualifies for a lower real estate fee or agent commission, it's time to prepare for the negotiating table. Basically, real estate agents work hard to help you buy or sell your home at the best price, which also affects your commission.
The average real estate commission rate has recently dropped to just under 5 percent of the sale price of a home, according to Real Trends, a real estate research and consulting firm. A real estate commission is the payment that a real estate agent receives for helping his client buy or sell a home. Realtors who refuse to discount fees likely believe that the two transactions are separate from each other, and they are. Interviewing more than one real estate agent can be valuable just to get different ideas and marketing strategies, negotiations, financing you will accept, contract clauses, advice on staging the house, and any repairs you may or may not do.
However, it's much easier to work with a company that offers discounted commissions right from the start or that pre-negotiates real estate commissions with agents. Unlike a traditional real estate agent who offers “full service” that includes everything from the price of your home to negotiations and closing, flat-rate MLS listing services will leave most of the home sale process to you. Nearly three in four realtors, 73%, said they wouldn't lower their standard rate. Investors are usually expert negotiators, but avoid simply choosing the cheapest option when opting for a real estate agent.