If you want to negotiate real estate commissions, it is important that you realize approximately 6% of the commission is considered a high price. Generally, you can set the percentage between 3-4 percent.
When everything is coming together during the home buying or selling process, you don’t want to lose any important ground during the negotiation wondering what the realtor commission should be. So, follow these 5 important tips on how to negotiate with a realtor commission before beginning the process.
When you have set a price for the home, you can consider the realtor commission.
Here are 5 tips to help you negotiate real estate commissions:
The fluctuating housing market can change on both the sellers and buyers side, at any time. Get all of the paperwork you can, including data about recent sales in the neighborhood, comparable home values, and flips (if any). This can give you a good idea about the actual value of the home. This way, you will know how to negotiate a realtor commission accurately.
Take the Lead
If you are able to take control of the conversation during negotiations it will be much easier to get what you want. If you want to have things turn out in your favor, talking to the listing agent about your specific needs will help. If you are able to effectively communicate your needs to the listing agent, like your budget, family size, schools, employment etc., tell the listing agent and other real estate professionals. This is the best way to turn the negotiation in your favor.
Your listing agent should be able to answer questions about their career, marketing strategy, success rate, client communication, and provide a list of references. Don’t make the mistake of choosing a listing agent without asking enough questions. It can make a BIG difference when learning how to negotiate with a realtor commission.
Use Any Leverage
Gaining ground in a negotiation is important, but that doesn’t mean that it is easy to do. Use anything you can to gain leverage during the negotiation process. If that means pulling up documents from home inspections, data from online searches, comparative home selling values – get the data. The more information you have during the negotiation process, the more likely you are to get the lower percentage you want.
Show Up In Person
You cannot assume that any strategy will actually work if you aren’t building a real relationship with your listing agent. In order to negotiate real estate commissions successfully, you must choose the right real estate agent. That way, when the time comes to negotiate realtor commission, the process is easier to navigate. Not to mention more enjoyable.
How to negotiate with a realtor commission is a simple and easy process if you follow these 5 steps, and include the team at Jeff Barchi in your home buying. Reach out to our team, today!