Most realty agents charge somewhere around 6 percent of the total home price for selling houses. This percentage includes both commission and fees, and it amounts to a significant amount of money in most cases. Although you might have to use a real estate agent if you want to get your home sold quickly, you don't necessarily have to pay that 6 percent. Use these two creative ways to get your real estate agent to cut their percentage when selling your house!
Bargaining: It's Not Just For Flea Markets and Pawn Shops
While you might think of bargaining as something that happens primarily at places like flea markets and pawn shops, you can also do some negotiation with your real estate agent. While the agent will probably present you with a contract that specifies their usual percentage, you don't have to sign on the dotted line.
Instead, make the agent an offer. Tell them that you are willing to pay half the usual percentage and see how they respond. The agent may respond with a counter–offer that is lower than the original percentage, or they may even accept your offer.
Don't assume that you are being unfair to the agent by negotiating a lower percentage. They'll still make a nice chunk of change when your home sells, even at half the usual percentage. Also, keep in mind that the agent may end up getting full six percent (or more!) in the long run, anyway. If you choose to buy your new home with the same agent, the seller of that new home will be paying the agent, just as you did.
Competition: It Can Bring Out The Best In Real Estate Agents
While most real estate agents do charge about the same amount, there are always going to be variations, and it's your job to find those variations in order to save some money. Try to interview at least a few different local real estate agents to find out what their commission and fees are.
Make sure that you find out exactly what's included in the realty services before doing a comparison. As long as all of the potential real estate agents include marketing and have a specific plan for selling your home, you can usually consider the services more or less equal. With that in mind, it makes sense to let the realtors know that they have competition for your business.
After you've got rates from several agents, revisit your top choice if they don't have the lowest offer. Let the agent know that you've got a lower offer from a competitor, and ask if they would consider matching that offer. You might be surprised to see just how willing your agent is to give a price cut when they find out your business is on the line.
If you want to know more, try contacting a company such as The Gresham Group.