Tips on Lowering Realtor Commission Fees
It can be extremely difficult to sell your house, especially if you don’t hire a professional real estate agent. Unfortunately, real estate agent fees are pretty expensive. Because of that, many clients opt to try to lower the fee of their real estate agent.
Technically, real estate agent fees are always negotiable. It does not matter what the broker or agent may tell you. However, your capability of negotiating a lower price might differ on various factors. This includes the relationship of the agent with their brokerage, demand in your area, your property, and much more.
You should keep in mind that it can be hard to negotiate the agent’s commission fees. Even if you do manage to lower the price, it might not be a big reduction. Today, we’re going to share with you some tips on how to lower the commission fees of Kitsap County real estate agents.
The Agent Needs a Bottom Line
If you’re trying to enter into price negotiations, you should remember that the deal has to make sense for the agent as well.
It is not cheap to be a real estate agent. If you reduce their commission fees too much, it can lead to them losing money on your sale.
This is particularly true for newer agents. They typically have slimmer margins to play compared to independent and/or veteran agents.
Possible Issues when Negotiating a Lower Fee
The fees of a real estate agent are always negotiable. Unfortunately, not every agent will have the ability to lower their own rate. This is particularly true if they’re working with a brokerage.
A lot of brokerages dictate commission structures on their agents. This means that the agent might not be able to reduce their fees, even if they want to.
Look Around for the Best Rates
There are a lot of choices out there. This includes discount services, agents, and brokerages. You should always be patient and do your homework.
With a bit of research, you will be able to find an excellent agent who is willing to lower their commission fees.
It is suggested that you shop around and interview at least 3 different brokers and/or agents. This will help you find the ideal overall fit and value.
Do Not be Scared to Initiate a Pricing Conversation
Almost every agent is used to having talks about compensation. Because of this, they’ll be open to negotiating their commission fees.
The truth is that around 30% of home sellers try to negotiate fees with their real estate agents. In addition to that, around 55% of them are successful in lowering the rates.
Should You Negotiate the Commission Fees of Your Real Estate Agent?
The short answer to that question is yes. You should try to lower their fees. It’s extremely expensive to sell a house. One of the biggest associated expenses is realtor fees. Even if you manage to lower the fee by a bit, it can save you a lot of money.
Keep in mind that real estate agents have no set fee. However, the average rate in the United States is 5% of the home’s sell price.