Pay Less Real Estate Commission

Yes, you can pay less real estate commission on the sale of your home. Regardless of which state you live in, all real estate commissions are negotiable. Real estate agents prefer you to pay the "standard" fee of 7%, but times are different.

This latest recession/depression has put a big hurt on real estate agents and brokers. With home sales down many agents are not selling as much as they used to. Life on easy street has changed for many of them.

How much does an agent make on a sale?

A typical listing agent will split the real estate commission 50% with the selling agent. So, on a $200,000 home the "standard" commission of 7% would be $14,000. So, your listing agent gets half, or $7,000. Now the listing agent doesn't get to keep this full amount unless they're also the broker. Often, the agent and broker will split 50/50, or each getting $3,500. Many agents will sell one house a week. That's $182,000 a year! Now, if they both list and sell your house they make double. Not bad for a little bit of work, huh? dallas homes for sale

How do you find an agent that will negotiate?

First, look for agents at smaller real estate companies, or even better yet, independent owner/brokers. They're much more likely to reduce their fees. Also, agents at the bigger real estate companies will be under more pressure from their brokers not reduce their commissions.

Start making a list from the internet or yellow pages of all the local real estate agents in the area. Then get on the phone and ask them a few questions, such as:

"How long have you been selling real estate?" "How many houses do you sell a year?" "What is the average length of time it takes you to sell a home in my neighborhood?"

By asking these questions, you're letting the agent know that you're qualifying them over the phone, and that you're in charge. dallas homes for sale

Next, ask if their real estate commission is negotiable. If they respond with a "no", thank them for their time and move on to the next call. Don't waste your time or theirs arguing.

If their response is a "yes" or a "maybe", let them know you'll be conducting face-to-face interviews in the next week. Get their cell phone number, so you'll be able to reach them easily.

When you've finished your list set up appointments with the ones you feel most comfortable with. Give them your address, so they can present a marketing plan for your property. Also, let them know you expect them to submit their best offer as far as a commission is concerned.

When you meet with the agents do not sign a contract or make a commitment on the spot. Many agents will try to "close the sale" and walk away with a listing. Tell them you haven't finished interviewing all the agents and you'll get back to them. Be honest with them if someone else is offering a lower commission rate.

It's ok to go back and forth negotiating with agents on a commission rate. They're used to negotiating, just not with their inflated commissions! dallas homes for sale

Choose the agent who you feel has a reasonable real estate commission, and one who will do the best job of selling your property for the most money. Good luck!