How To Get Around Paying Real Estate Commission
Posted: Friday, January 29, 2010
by Adam Waxler
uKeepCommission Real Estate
If you're going to be selling your house by working with an agent then you are going to find yourse
The question then becomes precisely how much is the commission that the seller is having to pay?
The percentage is agreed upon between the seller and his agent prior to the home going into the local MLS or Multiple Listing Service. It is important if you are going to be paying real estate commission to an agent, to make sure you are not having to pay too much. However, the percentage is NOT usually going to be negotiable. In fact, many (if not most) brokers will NOT allow their agents negotiate their fee. And additionally, if the broker does allow their agents to reduce the commission, most agents themselves will not be willing to do so. For that reason it is important if you are planning on selling your home that you check with the agent in advance whether or not they can negotiate the commission. If your agent is not really willing to reduce the commission, then simply continue your hunt to get a better agent.
At the same time, in terms of paying real estate commission, you want to also be sure you will not be paying too small an amount. Unless you are working with a flat fee listing service, in which case you pay no commission, but also have no agent, you need to ensure that the agent isn't lowering the commission too much or else the agent won't be as determined to work for you. They likely will work harder for the customers who are having to pay a higher commission. Try to strike a balance where you'll get what can be considered a deal in terms of paying real estate commission, but where you wouldn't be totally cutting the agent out of the mix.
So what exactly is the best deal?
To start with, you must remember without any negotiating, an average real estate transaction has the seller paying 6% of the final selling price with 3% of that going to the selling agent and 3% going to the buying agent. Naturally, each of those those agents must then pay their broker their share. A broker usually gets from 20% - 50% of their real estate agent's commissions.
Therefore, while the seller is probably paying out 6% in commissions, just 3% of that goes to the seller's agent (and that agent just will get about 70% of that). So, keep in mind that you are only seeking to negotiate down that 3%. If the agent is willing to meet you half way then you've got a nice deal. In other words, the agent should be ready to slice 1.5% out of their 3% commission. Consequently, the seller will just be paying 4.5% of the final sale price (3% to the buying agent and 1.5% to the selling agent).
Again, in the event that your agent is unable to negotiate when it comes to paying real estate commission, then find a better agent.
Want to avoid paying real estate commission? If you're looking to save thousands of dollars when selling your Florida home then make sure contact uKeepCommission Real Estate at http://www.uKeepCommission.com or call 941-465-9207
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