Think about the last time you had to pay for a big expense. If there was a reasonable way you could’ve paid less, you would’ve done it, right?
Some people think about real estate agent commissions the same way. A Redfin survey showed that 60% of people who sold a home saved money on agent fees.
You can negotiate realtor fees, and a successful negotiation can be a great way to save money when you sell your home. It doesn’t always work out, but it might be worth a try. Here’s what you need to know:
1. Find out what you’re working with before negotiating
Most home sales involve two different real estate agents: the buyer’s agent and the seller’s agent. Their combined commission is usually between 4-6% of the home’s sale price. If someone sells their home for $350,000 with a 6% commission rate, they’ll pay $21,000 in combined realtor fees. An even split would mean $10,500 for their realtor and $10,500 for the buyer’s realtor.
The seller usually pays both commissions, but that doesn’t mean they can’t find ways to pass the cost onto the buyer. Increasing the home’s listing price is a common way to do this.
Most negotiations will happen between the seller and the listing agent representing them. The buyer and their agent usually aren’t involved.
Think of negotiating realtor fees as more of an art than a science. Each situation is a little different, and some of it will come down to your best judgment. But you can still set yourself up for success.
If you haven’t already, do some research into the real estate commission fees where you live. Ask family, friends, or other acquaintances in the area how much they paid when they sold their home.
The thought of rejection might be intimidating at first. But a good realtor won’t be annoyed by your offer, even if they don’t accept it. They get these questions all the time, so you’re in good company.
2. Understand what will help you negotiate agent fees
Like a lawyer in a courtroom,…