How to Negotiate Your Real Estate Agent's Commission When Selling a Home
- 1). Get a good idea of what your home is worth before you start meeting with agents. Check out other homes for sale in your neighborhood, find out what similar homes have sold for, and consider having your home appraised.
- 2). Learn as much as you can about the local market - does it favor sellers or buyers? (If the market favors sellers, you will generally have more negotiating power with agents.)
- 3). Establish precisely what price or percentage you're willing to pay before going into a negotiation situation.
- 4). Determine your agent's qualifications before you start negotiating. It may be that you'll feel your agent is worth what he or she charges. Also note the agent's apparent weaknesses and use these in bargaining.
- 5). Explore payment options (beyond just straight commissions) with agents. For example, you can discuss a flat fee; a dual fee in which you pay 5 percent if the home is sold with a buyer broker and 3 percent if sold only by the listing broker; or pay consultant fees on an as-needed basis.
