Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
How (and why) do you negotiate realtor's commission?
Just curious why you would want to do this, and if you did it, how? Did you just ask for a lesser percent?
We haven't signed any paperwork yet but our realtor has 5% written down and I feel like that is fair. I can't see why it isn't fair, anyway...
Re: How (and why) do you negotiate realtor's commission?
I negotiated down from 6 to 5 for a couple reasons. In my area about half seem to charge 5 and half charge 6. I have used my realtor for several sales/purchases in the past so I feel we have gotten to know each other and work very well together, and it makes her job easier. I also have referred her to others whom have used her and she's made a small fortune of all the sales I brought her.
She is excellent and deserves a decent rate but with all the above reasons, I simply asked if her rate was negotiable. Her reply? I will drop 1 percent, without any further discussion needed. very simple.
I am not sure what others will say. In my situation, I bought my condo in 2005 and its gone down (based on the comps) by almost $100K. Luckily, I put a fair amount down with the purchase and have been paying it down every month. Depending on what the condo finally sells for- I'll either make about $10K or have to bring about $10K to the table to close (there is a range based on comparable sales).
I've told my REA my bottom line number I need to sell (any bigger deficit- we'll just rent the place out and not sell it). She's said- we'll make it work. I assume from this, she has some wiggle room in her commission- obviously, I really don't want to have to bring $$ to closing if I don't have to. When we go to list, we are going to go for 4.5% because of our situation. Before we got married, DH sold his condo with a 4.5% in the same city (similar price range for the property), so I have to believe this is doable.
FWIW, my parents have listed properties and negotiated a 4% commission, but this was at a much higher price level than I am currently at.
View our FOR SALE items
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To the OP, the mentality behind asking a Realtor for a lower commission rate is typically based on the thought that a Realtor does not do anything significant to sell your house. As a Realtor in Houston, the reason I get most of the time is based on a lack of value in what I do. It is common. However, a good REA will be able to explain the value in utilizing him or her.
If you are selling AND buying, you, as the client, have more leverage in asking for a reduction in the list price commission since you may be using the same agent to buy. I use an alternative rebate structure that protects me, as an agent, rather than giving it back to you at the beginning, but in the end, everyone is happy.