How to Successfully Negotiate Sales Commissions

One of the biggest reasons many people choose to try to sell their home on their own without the benefit of a real estate agent can be summed up in one word: commission. There is no getting around the fact that when you utilize a real estate agent to sell your home or property you will need to fork over a percentage of the final sales price to the real estate agent in the form of a sales commission. While there are numerous benefits to using a real estate agent to sell your home, including a higher sales price and shorter time on the market, it can benefit you negotiate the commission with your chose agent rather than sticking with the industry standard.

Typically, most real estate agents charge between five and six percent of the total sale price depending on the area where you are selling your property. While this may be a typical standard, you do have the right to try to negotiate with the agent for a lower commission rate.

Always be sure to ask up front, before you sign any listing contract, how much the agent will charge as a sales commission. This can help you to avoid any unexpected surprises later on. There is no law that fixes sales commissions and you certainly have the right to ask for a lower rate if you believe that the rate you’ve been given is too high.

Now, of course, your agent doesn’t have to lower the rate but you don’t have to accept whatever rate you’ve been given either. If you feel that you would have better luck with another agent in gaining a lower rate you can always look for someone else.

You can improve your odds of getting the agent to negotiate with you on a lower sales commission by obtaining information from other agents in advance regarding the going rate for sales commission. If you can show that other agents charge a lower rate and make the point that you’ll walk and sign with someone else if your chosen agent doesn’t lower their rate, you may just be able to strike a deal. In addition, if your home would be a particularly hot commodity on the market, you may also find yourself in a better negotiating position. If the house will sell rather quickly based on its own merit, the agent won’t have to put as much work into marketing; thereby justifying a lower commission rate.

 
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