Possible Ways to Pay Less Real Estate Commission
We’re all aware that buying or selling a home is not a walk in the park. It is equally expensive as it is tiring. The commission rate charged by real estate agents usually varies but commonly, it lies between 5% and 6%. Fortunately, this rate isn’t fixed so a negotiation is always an option and a better deal can be made. Every buck counts so saving even half a percentage point could come in handy in the run.
We’ve arranged a few pointers for you to bring into consideration that could help you save a penny or two.
Understand That The Commission Rates Are Not Fixed:
Before you start to come up with ways that could possibly help you pay a lesser real estate commission, let’s understand that there is no fixed rate of commission. The expected commission is to be 6% but rates have gone as close to 5% which proves it is clearly negotiable even if agents tell you their standard rate is 6%.
Interview At Least Three Agents:
It’s always better to have a variety of options before you narrow-down to the final one. Prepare yourself a set of questions to ask the agents, this will help you make a more informed decision later on. If the demand for houses in the area you live is high, then most agents will have a recorded track record of quick sales. So, they’re bound to have a higher rate of commission.
Determine Good Reasons To Lower The Commission:
Even if you start off with 6% commission rate, you can try to negotiate it later. There are certain circumstances where an agent will most probably agree to lower commission, which include:
- The house is in an area where homes sell very quickly and the agent is unlikely to have to do much work to find potential buyers.
- You are buying a house and selling a house with the same agent.
- The agent agrees to alter the marketing strategy. This could include only listing the house for a short period, or not conducting an open house.
- The listed home is at the high end of the market.
- You are selling the house to a friend, family member or somebody known to you.
Contemplate How You Could Reduce The Agent’s Work:
If you tend to lessen some of the work which the agent would be doing then you might be able to decide upon a lower rate of commission. When you do those tasks, yourself you are getting a one-on-one experience with your clients, some of these tasks include:
- Advertise your house yourself.
- Ensure your house is in good condition when being presented to visitors.
- Clean the inside and outside of the house yourself.
Read more: Is investors’ next stop Wapda Town?
Sell When The Market Is Down:
An agent is more accepting towards negotiations when there aren’t many or fewer houses selling. So, selling your house during the off-season can be beneficial, however, the drawback is that it might be harder to sell your house and the price would have to be lowered as well.
So, there you have it. If lowering the real estate commission is a priority to you then these tips can help you finalize at a decent rate.
Tell us what you think if you try out any of these tips, in the comments section below or you can sign up and continue this discussion on our forum.
December 22, 2017 AT 11:12 AM
Who pays the commission in a real estate transaction?