You may have heard or you may believe that REALTORS and real estate agents all charge X%.
The truth is we are not allowed to know what other agents are charging and there is no central data repository where commissions data can be collected and analyzed.
Some real estate companies tell their agents to charge X amount. Real estate agents are independent contractors and can say no or move to another company.
Real estate commissions are always negotiable. It isn’t always easy to negotiate with real estate agents. We negotiate all the time. Most of us wake up unemployed each morning and spend the day looking for clients. Those of us who survive get to be pretty good at negotiating.
If you find real estate agent who will not negotiate find one who will. There are like a zillion agents who are qualified to sell your home and who would do a good job. There isn’t any reason to settle.
You want an agents who is easy to work with and one who can negotiate.
When negotiating commission agents are taught to tell homeowners that agents who will discount their commission will likely get less for your house. There is no data to back that up. It is the sellers who have the last word about which offer gets accepted, not the agent.
Some agents will tell you they are worth “X” % and show you a list of services they provide and ask you which services they should cut so that they can work for less. Go ahead and challenge the agent to tell you how much each of those services cost.
Buyers agents usually get paid by the seller through the listing agent. I for one have never asked a buyer to pay my commission directly but I certainly could.
If a home buyer asked me to give them part of the commission I would probably say no. What some buyers do not realize is that working with a buyer is a lot more work than working with a seller.
Finding a home for sale has gotten fairly easy but is only a small part of the job. Learning to handle the multiple offers, negotiations during the inspection period and getting it all the way to the closing table can be challenging.
When choosing an agent a home buyer or seller should be choosing an agent who has experience. Agents with no experience can charge as much as experienced agents charge.
When looking for an agent ask your neighbors, friends, family, and co-workers for a recommendation. Talk to a few agents and ask them how much they charge. Also, ask about any fees charged by the real estate company in addition to a commission.
Also see Oink!
How not to chose a real estate agent