Featured News 2014 Negotiating the Real Estate Agent’s Commission

Negotiating the Real Estate Agent’s Commission

No matter what the current value of your home may be, it is likely that you want to keep as much of the value as possible. Following the mortgage, paying off the real estate agent in charge of the house may be the next largest expense you have. Negotiating a final payment amount with a real estate agent can be one of the best ways to save money from the sale.

How can I reduce the amount I pay for the sale?

When you sell your house, you and the buyer will likely work with the real estate agents of your choosing. Based on the proceeds of the house, the seller will likely pay the commission of both their agent and the buyer's agent as well. You have the opportunity to set the amount of commission both agents get. For example, many agents will request a 6% commission of the total cost of the home to be split evenly with the buyer's agent.

Maximize the payments from your home sale by:

  1. Cut real estate commission by working with the agent to develop an acceptable rate. While no agent will want to go lower, there may be some instances where they work out an acceptable split or seek additional work from you in exchange for a lowered commission.
  2. Share work with the agent. This can mean hosting your own open house events or sprucing up the curb appeal of the house in order to garner a higher sale offer. This can make the agent more willing to work with a reduced commission.
  3. Sell the home during the off-season. At times when not many people are selling their homes, real estate agents may be seeking business, and therefore willing to work at a reduced rate. However, this may also mean that less people are looking to buy homes, which works at a disadvantage for you.

Shaving even a small percentage off of this amount can result in huge savings. In some large-sale homes, reducing the commission by just 0.5% can result in a net savings of a few thousand dollars.

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