Selling or buying a home can be a lot of work.The rate of commission charged by a real estate agent is usually between 5% and 6%.You can negotiate a better deal with the agent if the rate is not fixed.The rate could be lowered by half a percentage point.You can try to negotiate a lower rate, as well as employing an agent on a flat fee basis, or marketing and selling the property yourself.
Step 1: Commission rates aren't fixed.
It is important to remember that there is no fixed standard rate of commission when it comes to paying real estate commission.In recent years the average rate has been closer to 5%, but there is an expectation that commission will be 6.Real estate agents can say that 6% is their standard rate, but that doesn't mean there is no room for negotiation.During housing booms, the rates of commissions fall and selling a house doesn't take a lot of work.When selling a house is more difficult, commission rates tend to go up.
Step 2: Interview at least three agents.
Before you sign up with a real estate agent, be sure to interview a number of potential agents and keep an open mind.Before you meet with any agents, you should ask some questions to help you make a decision.You may decide to pay a higher rate of commission if the agent has a proven track record of selling quickly.If the demand for houses is high in your area, most real estate agents will have a proven track record of quick sales.Ask the agent how long her listings stay on the market.She has experience selling houses in your area.Ask her what she will do to sell your house.The agent should have a plan.
Step 3: Good reasons to lower the commission can be found.
You can always try to negotiate a lower rate for your agent.Unless you ask, the agent may refuse to lower it.Some of the reasons why a lower rate of commission may be appropriate will be helpful in your negotiations.The house is in an area where homes sell very quickly and the agent is not likely to have to do much work to find potential buyers.The high end of the market is where the home is listed.The marketing strategy will be changed by the agent.This could include not conducting an open house or only listing the house for a short period.You are selling the house to someone you know.You are buying a house and selling one.
Step 4: How can we reduce the agent's work?
One of the best ways to get a lower rate of commission is to take on work that the agent wouldn't do.If you are selling to someone you know, you shouldn't have to pay for marketing.You can advertise your house on your own by hosting open house events.It is possible to lower the work for the agent by making sure that your house is well presented for potential buyers.Say in your negotiations that you will clean and fix up the inside and outside of the house yourself.You could spend some of the money you save on a professional who presents houses to buyers.You may be able to negotiate to pay for a photographer on your own.
Step 5: When the market is down, sell.
When houses aren't selling an agent is more likely to negotiate a lower rate of commission.It is possible to negotiate a lower rate of commission if you sell your house in the off-season.If your house is harder to sell, the price may have to be lowered.
Step 6: Sell your home on your own.
There are many ways to sell your house without using real estate agencies and paying high rates of commission.It is possible to advertise and sell your house online if you have the time and are prepared to put in the work.If you hire a lawyer, you can still save a lot of money.The selling of a house can be difficult.It can be difficult to drum up interest if the property you are selling is not in a popular area.The deals are called for sale by owner.If you find a buyer yourself, you may be able to save money if you list your home with a real estate agent.The agent's commission is 2% if the seller brings the buyer.The agent's commission will be 4% if the listing agent brings the buyer.The agent's commission will be 6% if another agent brings the buyer.
Step 7: Call flat fee agents.
A number of real estate agents will work to a flat fee, rather than a rate of commission.Depending on how much your house is being sold for, this could save you thousands of dollars.Flat fee agents are more limited in their service than agents who work for a percentage.The advantage to the seller is that you can negotiate a fee up front and you will know exactly how much you are going to pay the agent from the start.It's important that you're completely clear about the fee.You can pay a relatively small amount for the agency to list your house.If you don't pay again, your house will not be re- listed.
Step 8: Take a look at the rebates.
In some cases, a broker will offer to pay a rebate to the seller after the deal is closed.The broker will have to pay back a percentage of the commission.A broker may be able to give you a kickback of one third of the commission, which can save you thousands of dollars.Some brokers use rebates to get their business.Other incentives may include gift certificates or a free moving service.If you live in a state that doesn't allow rebates, be sure to check the rules.