The average sales commission in the real estate market for the real estate agent is at around 5%. This is a pretty high price if you do the math and you do need to consider the services of the real estate agents because of the associated advantages. The good news is there are always ways in which the commissions can be reduced or you can simply save some money during the buying or selling process. Here are some things you do need to be aware of.
Reduce The Commission By Half
The real estate agent commission is normally split between the seller and the buyer. Even so, the home seller is the one that tends to pay it in full. When selling real estate property and buying something else in return you do want to work with the same agent so that you can negotiate cutting the commission in half. Many think that this is not possible but this is incorrect, especially with the pricier properties available on the market.
Shopping Around For Better Commissions
It is highly recommended that you will interview at least 3 real estate agents in order to see what commissions are going to be charged. You might be surprised to find out that there are some pretty great deals available on the market right now, like the One Percent Guys. Alternatively, you can contact the agencies in order to discuss the property with them and see what they would be willing to agree with when they find clients. Having the real estate agents compete with each other is going to drastically reduce commissions in many cases.
Discuss What The Commission Entitles You To
This is especially important when you talk to an agent that is asking for a commission that is higher than current local market average. Is there a reason why you need to pay more than what the others charge? When you deal with luxury real estate the costs that are needed to advertise are normally higher or the considered agent may actually have an increased number of contacts than what the cheap realtor has access to. If the reasons that are offered are not justified you will want to consider negotiations. When negotiations do not work you want to work with another real estate agent.
Higher Selling Price
In this case you are not actually negotiating lower agent commissions but you end up covering payment through receiving a larger amount of money as the property is sold. When the buyer offers an asking price that is close to what you want within a short time frame you are tempted to take the deal. However, a real estate agent is going to be interested in selling the property fast, without waiting for a higher offer that would be more than the asking price. Holding out for some time and receiving more money for the property is going to be mainly beneficial for the seller. Commissions are normally covered and more money lands in the seller’s pockets.