In continuing with our series on “10 Things About Agents”, we move onto commissions. The whole basis for the For Sale by Owner model is to avoid those costly commissions. So I think I should start this post off as saying that commission are more than negotiable—they’re unnecessary. Instead of selling your house and paying that 5%-6% commission rate (which sellers are responsible for), you can sell your home yourself, save the thousands on commission and never have to deal with realtors.
Despite the resounding reasons against going with a realtor in the first place, we shall still enumerate upon this topic—briefly.
Real estate brokers and their agents tend to make is sound like their fees are at a set price, a certain percentage of commission on a given sale. But when market factors tend to force competition—such as this market—realtors tend to be a little bit more flexible. If you ask them, they’ll probably be more than happy to give you a discount if you commit to selling your house and purchasing your next with them. If you end up in a dual-agency position, the representing agent will typically reduce fees.
Bigger agencies tend to offer “better” services through their agents and will have more fees and costs before commission is even discussed. So it’s typically cheaper to go through independent realtors or smaller agencies.
One case in which seller and buyers should definitely try to negotiate with agent commission fees is when the home doesn’t quite sell at the asking price. In many cases, agents are more than happy to renegotiate their commission percentages in order to get a deal in the books.
Although agent commissions seem like hard, fast rules, they’re often negotiable under the proper circumstances as evidenced by the cases presented above. Remember: you always have the ability to ask for a lower commission rate. Or you can’t just go the FSBO route and avoid the whole debacle.
Coming up next:
The 3rd thing about realtors, and…
Texans start to feel the housing crunch.