Selling your house can be a long and stressful process, and negotiating your real estate agent’s fees shouldn’t be one of them. Whether you’re buying or selling a home, you’ll know that an estate agent or a property lawyer will get paid a commission upon completion of the sale. While the commission for selling your home is negotiable, the commission for buying a new home is not.
Real estate agents are responsible for getting your home sold, but a lot of people don’t realize that they are also responsible for negotiating their own fees. If you aren’t careful, you could end up paying way more than anticipated for your real estate agent’s services. Try to negotiate with your real estate agent on fees, and don’t be afraid to tell your agent that you don’t think their services are worth as much as they are charging you.
How to Successfully Negotiate Commission
Negotiating a real estate commission can be a challenging process. Your real estate agent should have a good idea of what to expect before ever contacting the seller. They should be familiar with the market and have a good idea of how much their commission should realistically be. A good real estate agent will have photos of the home, have recent comparable sales, and be open-minded to negotiating the selling price.
Negotiating a real estate commission is often the first step in finding the right agent. If you’re wondering how to negotiate several agents successfully, you know you’re on the right track to getting the best home possible. Here are tips you can use when negotiating a real estate commission.
Research agents online.
Before visiting or even speaking with a real estate agent, you should do some research online about their experience, their bio, and reviews by other clients. This can help you figure out if the agent is a good fit for what you’re looking for. Asking for referrals or a friend’s recommendation can help you narrow your choices.
Research agents online. Once you have come up with a list, proceed to contact them and ask if they are interested in working with you. Chances are, they will say yes, but if not, keep searching. Be patient and do not give up. Once you have found the right agent, make a commission agreement. The agent will probably ask for your commission payment upfront, but if you choose to pay in full, make sure it is in advance.
Know what you want.
Before you can even begin to negotiate a real estate commission, you need to understand what you want. Is this your first home? Are you moving to a bigger home? Are you seeking a vacation home? Knowing what kind of property you’re looking for will help the agents serve you better.
Don’t demand a low commission.
Real estate agents work really well when they know what they want. They are less likely to waste your time. Many salespeople have a habit of demanding a low commission on a deal. This is a big mistake because the salesperson always ends up settling for a low commission. Most salespeople settle because it is less painful than asking for a higher commission. Begin any negotiation by asking for what you want. Then, let the salesperson talk and decide how much commission they are willing to offer.
Consider the market and season
One of the biggest keys to successful negotiations is considering the market and season. In today’s economy, and with the number of jobs out there, buyers are very competitive, and sellers need to price their homes competitively. If they price too high, they will have a hard time selling. If they price too low, they will not get the amount of commission they deserve.