Yes, it is true real estate commissions are negotiable. They always have been.
Agents are independent contractors who set their own rates. Some agents will not negotiate. Agents are not required to negotiate.
There is no “going rate” but I’ll admit I have benefited from the myth. For many years I have charged less than what people believe to be the “going” rate.
Real estate agents are selling experience yet new agents often charge the same rate an experienced agent charges. Personally I wouldn’t pay it but people do.
There are many real estate agents to choose from. In fact, there are more agents than there are houses to sell. If one agent charges too much and won’t come down in price find an agent who will.
Real estate agents are salespeople taught how to sell themselves and negotiate fees and commissions. Real estate agents do not get paid until after a sale closes and most work on a 100% commission basis. There are no paid vacations and there is no group health insurance.
Some agents show this chart that shows how much of the commission they get to keep after fees and splits with their broker. To that I say who cares. That is the agents problem.
The good news is that people can buy and sell houses without the help of a real estate agent. It can work out very well especially considering that home buyers and sellers often do not know what it is they do not know and won’t know if they ended up spending more or getting less because they did all on their own.
Real estate commissions and fees are spelled out in the contracts home buyers and sellers sign. It is a good idea to read the contract before signing it. We can not list a house or work with a buyer without having a signed contract.
It is true that real estate agents can make a lot of money but most do not but don’t feel sorry for those who don’t make a lot of money.
