Should you negotiate what you pay in real estate commissions?

Why should the real estate commission negotiate. Real estate commissions are absolutely negotiable. Realtors 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. Real estate agent fees are technically always negotiable, regardless of what an agent or broker may tell you.

But your ability to negotiate a lower rate and how much lower depends on a variety of factors, including your ownership, demand in your area, the broker's relationship with your brokerage, and more. 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. Consider finding your real estate agent through an agent search service that negotiates discounted rates, such as Clever Real Estate. Being a real estate agent isn't cheap, and lowering their rate too much could cause them to actually lose money on your sale.

The multiple listing service (MLS) can increase the exposure of your listing, and its fixed rates tend to be much lower than real estate commissions. Real estate agents are well-versed in the local housing market and can tell you the proper value of your home, advise you on home repairs, help with staging and marketing the home, and then negotiate the sale, arrange for the inspection, and help with the closing process. If you think your sale qualifies for a lower real estate fee or agent commission, it's time to get ready for the negotiating table. Approach your relationship with a real estate agent like a partnership and talk about ways in which both of you can earn by negotiating commissions.

The average real estate commission is between 5 and 6%, and half goes to the seller's agent and the buyer's agent. Real estate agent commissions are one of the biggest costs of selling a home, so negotiate them to significantly reduce your costs and increase the amount you take away from the sale of your home. Lowering your real estate commission by just one percentage point could mean the difference of several thousand dollars in your pocket after a sale. Let's take a look at how real estate agent fees work and how you can negotiate them to save money.

Real estate agents list homes and share properties with other agents in the MLS, helping their clients sell or find a home. Realtors don't charge a fixed fee across the board, so you have room for negotiation to reduce your costs by thousands of dollars. Unless you have a lot of real estate experience and time to waste, your chances of getting the best possible price and terms or selling your home are relatively slim. However, contrary to popular belief, in most situations you can't haggle with real estate agents for this fee.

If you don't want to spend time negotiating rates yourself, you could save time and even get better rates with low-commission real estate companies that offer built-in discounts.

Leave Reply

Your email address will not be published. Required fields are marked *