Real Estate Agent Commissions
If there’s one thing we all want to talk about with real estate agents, it’s the commission. Of course, you want to pay as little as possible for the best service, right? Everyone wants that, but what if we told you that focusing on the commission first is a mistake? Yes, you want to pay a fair price, but there’s a lot more to it than just commissions.
Below we discuss the commissions, their structures, and how to talk about them with your agent to make it the most comfortable.
What are the Fee Structures?
On average, real estate agents charge between 5% and 6% of the home’s selling price. Of course, each agent has his or her own fee structure. Some charge 4% up to the first $300,000 with an additional 2% commission on any amount above $300,000. Others charge a flat fee regardless of the price, and yet others work on a sliding scale.
How to Talk to Your Agent About Fees
When you talk to your real estate agent about fees, you’ll actually talk about more than the money you’ll pay. You should discuss the selling time frame as well as the marketing style. It all goes hand-in-hand. Just because one agent gives the lowest price doesn’t mean he’ll provide the services you want. Sure you could sell your home, but if it’s for a lot less than what you want for it, you’ll be sorely disappointed. Making sure you have everything you need including the right price is important.
Your main focus should be the price you sell the home. Getting the right price for the home means you walk away with the amount you desire. You’d probably gladly pay a commission when you know you can get more for the home than you could if you sold on your own right? When you talk to an agent, focus on the price of the home, not the price of the commission.
Before you negotiate the fees, discuss with the agent the ‘right price’ to sell your home. At what price will you be satisfied? Then think about at what price will you be unhappy and want to lower the commission and what price will you be so happy that you’d pay a bonus? You are free to negotiate these rates with your real estate agent.
Are Fees Negotiable?
Real estate agent fees are negotiable as are the services they provide. It’s important to get downright honest with your agent. Ask what services he will provide at each commission rate. Don’t be afraid to ask for more services or negotiate a lower rate.
Also, don’t be afraid to shop around. Get quotes from a few agents. This way you can compare the cost and services to one another, choosing the agent that will sell your home for top dollar and market it the way you prefer.
Let us help you learn how to negotiate the right price to sell your home at the right commission. Your real estate agent plays a huge role in the process – we’ll help you make it successful.