If you are looking to put your home on the market, hiring a real estate agent can help your home to sell faster and for more money than attempting to list it yourself. However, hiring a real estate agent is not free. A real estate agent typically takes a certain percentage of the sale, which varies based on where you live. But these amounts are not set in stone. You can typically negotiate a commission with a real estate agent. Here are a few tips to help you negotiate a fair commission amount with a real estate agent.
Ask Other Realtors What Their Typical Commission Is
When you are first looking to hire a real estate agent, ask the real estate agents in your area what they charge. This will give you a good idea as to what is normal in your particular city, county or state. Real estate commission amounts may vary as the markets changes. As such, you may find that one real estate agent is high, simply because they haven't adjusted their rates to keep up with their competition. Letting them know what other agents are charging can give you leverage when negotiating commission.
Offer to Complete Certain Services Yourself
A real estate agent puts a lot of effort into listing and selling your home. They use different methods to help sell your home, including holding open houses, taking professional pictures to put on the Internet or using social media to attract potential buyers. If you are a photographer, you may be able to take your own professional photos. Then the real estate agent isn't paying for this service, which may entice them to lower your rates. If you're a professional, always ask if there is anything you can do yourself to get a discounted commission rate.
Negotiate an Incentive-Based Commission
Lastly, consider offering an incentive-based commission. For example, you may pay one percentage if the house sells for $300,000 within 60 days. If the house sells for less than $300,000 or if it sits for longer than 60 days, you may lower the commission amount. This helps to motivate the agent to price home properly and get it sold faster, which can be a win-win for you. If you do an incentive-based commission, always put the terms into the contract.
If you are looking to sell your home, it is important to take the time to find the right real estate agent for the job. Once you have found them, you can negotiate their commission amount to get a great real estate agent at a price that both of you feel is fair.Share
28 September 2018
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.