“My current Realtor raised her commission…
… from 6 to 7%. Can i do better?” – a Baron Briefs reader
Your current Realtor is likely offsetting the additional costs she incurs in marketing expenditures and overall risk as homes sit on the market unsold. If you want to keep her as your Realtor, here are some suggestions for getting her back down to 6%:
- Consider passing on expensive services that rarely sell homes such as newspaper advertisements and open houses
- Offer a “tiered” commission. For example, at $200,000, agree she’ll be paid 6% on any dollar up to $200,000 and paid 10% on any dollar above $200,000.
- If you’re moving within the same local market, ask her to represent you on your purchase, too. Typically, Realtors will reduce their commission by up to 33% if they have a hand in both transactions.
- And finally, if all else fails, we obviously recommend using our own service to help find the most competitive sales commission in your area.
Anyone have additional tips?
April 18th, 2008 at 11:02 am
I think most agents will agree that they cannot afford to loose a deal. Whether it is at 6% or 7%, the market is very tough right now. Not only are they paying for advertising, they are paying for gas to show houses or tracts of land that are 2 hours away.
April 19th, 2008 at 12:03 pm
Good article! Commission is very sensitive topic, no realtor is presenting it much, on the other hand it’s crucial for everyone. I am dealing with West Toronto homes and competition is very tight here, so it’s almost impossible to rise commission, but US market, hit with strong vibrations is in different position. I think realtors who are able to sell property quickly are very rare and many people are willing to pay more for them, because they now if they will be hesitating their property will lose much more than 1%.
May 2nd, 2008 at 4:25 am
Outragous that she’s putting the squeeze on you.
May 17th, 2008 at 6:22 pm
Any agent can list a property but not all can sell it. Not always, but most often you get what you pay for. I do believe no matter the commission percentage, the contract should state a lower commission if the LA brings the buyer.
Think about it– 6%, 7%, 10% — when was the last time you tipped a waitress that much? Is selling your house not more inportant than putting a plate in front of you?
May 17th, 2008 at 9:55 pm
@ John Rakoci
My mom uses the same rationale in her pitch when negotiating commission. Good thought, but odds are that your waitress isn’t making enough money to drive a lexus or mercedes, which seems to be the realtor vehicle of choice.
In all fairness, I’m not seeing a pinch where I need to raise my commissions about 6%. Why is this persons realtor suffering so much? I see low to mid-volume agents suffering, but it seems to me that agents who were top producers prior to the boom are still getting by just fine. Perhaps the problem lies in the agents own marketability?