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Thursday, October 7, 2010

Tips For Negotiating a Real Estate Broker Commission

Although most real estate brokers work for a specific commission, in some cases you may be able to negotiate to get a lower amount. Commission rates have come down a bit in recent years, but you still have a right to negotiate if need be.

By law, commissions must be open to negotiation to avoid "price fixing" situations. In regards to a real estate commission, even saving a single point can save a lot of money.

If you've decided to try negotiating with your real estate broker, you should first do some research so that you are familiar with the current rates. As the seller of a home, you actually have more control over the situation than you might think.

Get several commission estimates from different brokers. Then use the numbers you've found to get the best rate. It can also help to do some homework to see if you can find any weaknesses for the brokers that you can use to strengthen your case for a lower rate.

The Internet can make it easier to do the research you'll need in order to negotiate a commission. In fact, the Internet has done a lot to increase the overall competitiveness between brokers, which can also help a person get a better deal.

Offering incentives to your broker can often be a good way to get a lower rate plus a faster sale. For example, offer an extra bonus if the house is sold by a certain date, or if it sells for at least a certain price.

If you can't seem to negotiate a discounted rate from any of the real estate brokers in your area, you can consider working with a discount broker. These brokers traditionally work for a lower commission, and can often be found online.

Some brokers will also offer to change you for only the tasks you need them to perform. By using this method you'll save money by only paying for the services you really need.


Paul Jameston has been writing articles about commissions for the past two years. He also likes to write about NYC real estate, like information on SoHo apartments and Murray Hill apartments.
Paul Jameston

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