Can You Negotiate What a Realtor Will Charge You to Sell Your Home?

Yes, you can negotiate the commission a realtor charges you to sell your home, and in a competitive real estate market, you should. In many areas, the standard commission rate is 6%, but you may be able to secure a lower rate, such as 3% to 4%, especially if the agent is not busy or hasn't sold many homes recently.

Understanding Commission Rates

Most realtors expect a 6% commission for selling a home, but you can negotiate this rate down. For instance, you might pay 3% when the agent is not as busy or has not sold a home in a while. If you do not expect to make substantial profits, a lower rate might be more appropriate—3% or selling it yourself altogether.

Negotiating with Realtors

Real estate agents often offer discounts, especially to repeat customers or for large potential sales. For example, we frequently reduce the commission to 4% to 5% from the standard 6% for repeat customers or very large sales, and half that rate if we are only representing the seller. In some cases, we might offer a 1% commission to the seller's agent if we close a transaction, especially when the seller is difficult to deal with.

Realtor Fees and What They Include

Your realtor's fee covers a wide range of services, including professional photography with aerial and video, professional staging, on-site signage both inside and out, online and print advertising, and sometimes even paying part or all of a stager's expenses. This comprehensive approach ensures that your home is presented in the best possible light, increasing its marketability.

It is important to be clear about what you are getting for your money. The custom in real estate is that the seller pays for two realtors—both the seller's and the buyer's. This practice actually benefits the seller because it does not add a buyer's realtor commission to their already considerable down payment and closing costs, which can bring more buyers to your table.

Smart Negotiation Tips

When negotiating with a realtor, keep in mind that the agent you are working with will later be the one negotiating for you. This means the same person who might offer you the best deal when you reach out for a discount may also be the weakest negotiator. Consider these factors when deciding who to work with.

By understanding these negotiation tactics and the value that a realtor provides, you can make an informed decision and potentially save a significant amount of money on your home sale.