Negotiating Realtor Fees

When the real estate market was booming, there was no possibility of getting a negotiated fee from a realtor. Realtors were so busy that anyone who required their services just had to pay the going rate. Now that negotiation is possible, potential homeowners have the option of a better fee rate. A fee of seven percent has existed as a standard in the real estate business for many years, and it is based on the selling price of the home or property.

Some limiting factors

Negotiating a fee with an agent is not as easy as it may seem. For one thing, the seven percent dollar amount does not go entirely to the agent. The broker who employs the agent requires some of the profit of the sale to maintain the office and to pay licensing fees and other expenses. Then there is the matter of the agent who listed the property, because the listing may have come from someone who did not make the sale. The usual distribution between these two entities is a 50/50 split.

Inquiries are helpful

Some agents are willing to consider a discount on their fee for clients who hire them for more than one service. For example, a client who sells a home through an agent may offer to use the same agent to buy another home. Some agents also consider such an arrangement if the transactions go through their broker.

Dealing in real estate is an expensive activity, so the wise client takes the time to inquire if any discounts can help reduce some of the costs. Agents and brokers who want to increase their business are likely to consider making a deal.