Real estate commissions can significantly impact the cost of buying or selling a home. While the standard rate is between 5% and 6% of the home’s sale price, these fees are negotiable. Here's how and when you can lower those costs.

Understanding Real Estate Commission

• Typical Rate: 5%–6% of the property’s final sale price.
• Example: A $200,000 home = $12,000 commission split between buyer and seller agents.
• Who Pays?
• The seller usually covers the agent commissions.
• The buyer handles closing costs (e.g., taxes, loan processing).

Can You Negotiate Commission?

Yes, commission rates are not legally set. Agents may lower fees for the following reasons:
1. Easy-to-Sell Homes: High demand or move-in ready properties require less effort.
2. High Listing Price: More commission on a pricier property can justify a smaller percentage.
3. Fewer Services: If the agent provides limited services, a reduced fee might be fair.
4. Dual Agency: When one agent represents both the buyer and seller.
5. Repeat Business: Selling multiple properties or buying and selling simultaneously.

How to Negotiate a Lower Commission

• Do Your Research
• Understand your local market and recent home sales in your area.

• Highlight factors like hot neighborhoods or quick sales trends to support your case.

• Offer to Do Some Work

• Handle tasks like staging, marketing, or showing the home yourself to reduce the agent's workload.

• Sell During Off-Seasons

• Agents may be more open to negotiation during slower periods when they have fewer listings.

• Highlight Future Opportunities

• Promise future transactions, such as buying another property or selling additional homes.

Pros of Negotiating Commission

• Lower selling costs.
• Potential for significant savings on high-value properties.
• More control over the process by taking on additional responsibilities.

Cons of Negotiating Commission

• Agents may decline to represent you if the commission is too low.
• Reduced services may limit the effectiveness of your listing.

Pro Tip: Be transparent about your goals and expectations during negotiations. A respectful discussion can often lead to mutual benefits.

Next: Read 2500+ consumer guides to shopping, electronics, appliances, home services, cars, money and more.

❤ If you liked all this, consider supporting us by checking out SkillThing DOING Manuals