Negotiating Real Estate Commissions

Buying or selling real estate is no doubt a strenuous task and it takes a lot of experience to understand the market trends. Nevertheless, the task can be a made a little stress free by hiring the services of a real estate agent. However, the realtors charge the buyers and sellers hundreds of dollar as fee for their services. Remember a real estate agents commission is never written in stone and you can always negotiate it, keeping in mind your budget and expenditures. Our experts have listed a few tips below, which you can utilize to successfully negotiate your realtor’s commission.

Determine the resale value of your home

Start by obtaining a free market report on the value of your home and compare it with the selling price of comparable properties in your neighbourhood. You should also find out how long it took the comparable houses in your area to sell. This will give you an idea of how hard it will be for the estate agent to help you find a potential homebuyer.

Interview at least 3 real estate agents

It is highly recommended to interview at least three local real estate agents before finalizing one. Tell the realtors during the interview that your final decision will be based on their experience and competency as well as on the basis of the commission rates. Usually the agents working for a real estate firm do not have the power to negotiate commission with the clients, in this case you must negotiate with the owner of the firm.

Offer to share his/her workload

If nothing works, try offering the agent that you will perform some of the agent’s roles (estimating the selling price, taking photographs for marketing, conducting viewings etc). This may make your agent lower the commission.

Put your house up on the market for sale during an off season

Real estate agents usually don’t have a lot of business rolling in at an off-peak time, and may agree to give you an unusual discount on commission. Consider this option carefully since your ultimate goal is to sell the house and not to save a few dollars from the estate agent’s commission. Marketing your house for sale during an off season may reduce the number of potential homebuyers.

Consider dual agency option

Dual agency is a situation in which the same real estate agent represents you and the buyer. In this case he will not have to share the commission with the buyer’s agent, and may accept a lower percentage.