Does anyone have recommendations for negotiating Realtor fees?

Question

We are getting ready to sell our house in Michigan. Previously I thought Realtor fees were fixed. However, I have heard recently that they are negotiable. How should I approach agents with this question, and what is a reasonable discount to expect?

Answer 1

You get what you pay for. In most markets you can find a realtor who will list your home for 3%-4%, but all they will do is stick a sign in the yard and wait for a buyer. I've found that if you pay more - and pick a good realtor - they will advertise your property weekly, talk it up to other agents/brokers, do open houses, etc.

Answer 2

First of all if you want to be a FSBO (For Sale By Owner) by all means do it but make sure you know what you are doing. There are many legalities and work that has to be done to sell your house.

If you want to negotiate fees by all means do it BUT "you get what you pay for". Many agents tell you that they do the same work but for less money and the reality is that it is a real good illusion but far from the truth. If you pay less you get less services. I am NOT telling you that the highest commission will get you the best and hardest working agent either because just like there are real good agents in this industry, there are also those bad apples like in ANY other industry.

The fees ARE NOT fixed. If they were there would not be competition and the consumer would loose. Besides it is against the law for any agent to tell you that the commission is fixed. As it is widely known ANYTHING, I mean anything is negotiable in Real Estate and that includes the commission of the Realtor. But let me stress this point one more time "you get what you pay for"

There are many agents that only charge you 1% or some charge you a flat fee. Other traditional agents charge you the traditional 5% to 6% commission so you have many choices to pick from. I am a FULL service Realtor therefore I charge the traditional commission 5% - 6% because I offer a lot more than any other 1% or flat fee agent. I am not putting them down because they are good for certain seller but definitely not all of them. Most seller need a full service Realtor not a discount service.

I hope this information helps, good luck

Answer 3

Realtors fees are NOT fixed, but ask yourself this question,,,, Would you give a 100% effort if your employer offered you less money than what you are paid now? Of course you wouldn't, and Realtors are no different. I would be suspicious of a Realtor who offered to discount their fee upfront, Why do they feel they need to do that?

Now, if you get in a situation where you have an offer much less than expected or something like that, or if you offer to purchase your next home with that Realtor, then I'm sure a qualified agent would be more than willing to work with you. But I wouldn't recommend trying to cut fees upfront. What if your home sells for more than you had expected? Then obviously the agent earned every bit of his commission.

Answer 4

Think about what services you want the agent to provide. Do you just want your house put in the MLS? (This is what I always opt for). Do you want open houses? Do you want advertising? If so, how much? Do you need advice on staging your home? Do you need market data to figure out a competitive asking price? Do you want the agent to give you a price? How frequently do you expect your agent to update you? Do you need help evaluating offers and contracts?

Think about what a fair price for the services that you want and send emails to random agents to see if anyone is interested. If you get bites, then you can use them as leverage when negotiating with the agent of your choosing. If not, then you will have to offer up more $$. Note that you will also have to pay a co-op commission to the buyers agent that is separate from what you pay the listing agent.

If you are going to use the same agent to buy a different house, then say that you will buy the house through them if they list your house for free- I've done this a couple of times.

I only need the bare minimum of service so I offer a comensurate fixed fee $$. There are so many agents starving for business out there that I have never had a problem getting someone to bite.

Good luck!

Answer 5

Hello,

Yes, Realtor fees are not fixed by any State. They are always negotiable. But don't ever forget the old saying "You get what you pay for".

I bet you must be working somewhere. Will you take a cut in your salary? Not unless you are inexperienced, or the market is having too many people with your skills, or in case you need money desperately and you are willing to take a cut. Right?

If you look a a Realtor's job,

They need to get licensed and educated and continue to upgrade.
They Monitor the Economy at a very high level, and your specific market at the local level.
They network with people of their industry.
They spend time marketing themselves and once they get a listing,
they market the property.

A lot of skill, technique and effort is required in marketing Real Estate apart from sheer hours.

We are not even talking about protecting you in legal situations, getting you the best price and procedural aspects.

Think about it, someone who cannot negotiate their own commission, will they be able to negotiate your home price?

I hope that helps...

Disclosure: I am a Licensed Real Estate Agent in San Jose, CA.

Answer 6

your lucky if they are negotiable. Where I am from there seems to be a pact amongst Realtors to NOT negotiate with the sellers.

My real estate agent told me that it was "dirty" if another real estate agent negotiates to get the listing. Might want to make sure the representative isn't breaking any laws written or un-written.

I don't know, and am not really answering this question either I suppose, but I didn't think they were negotiable either??? If they were, you'd have RE agents running all over the place under cutting anyone and everyone with back stabbing taking place everywhere.

Answer 7

Have you thought about doing a For Sale By Owner? That away you can help the buyer with some closing cost, and not have the Realitor Fees - Lots of ppl are needing closing cost help. Just curious.

I always tell my clients that if you are needing closing cost help, to do the following. "NOT to hackle over the price, since you are asking for closing cost help" - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance). Realitors are great - but sometimes, with paying the realitor fees, the buyer will not get any assistance on their closing fee's.

A Broker, will order all the paper work that involves in a cloisng of a purchase. Works along with the title company,and orders survey's, appraisal, inspections, etc.

Just an Idea

Answer 8

It really depends on the price of your home. Most Realtors will take a cut if the house is expensive. Ask for a cut rate if they bring the buyer. Just ask questions about it. If a Realtor is offended by it, you don't want that Realtor. A good Realtor will answer any and all questions you have.

Answer 9

Sherman AntiTrust Law prohibits price fixing and market allocation. This means taht there is no set standard for commission charged for the sale of your home. The only thing your agent can say to you regarding commission is "I charge ___% for this type of transaction." They cannot tell you what other agencies charge.

Go in to talk with a realtor, and tell them you're only able to pay ___% commission, or $_____. Please remember to be fair and reasonable, as they are offering their services to you, and you are using them. Many times, agents will be willing to work with you to meet your needs. I've seen many agents take a reduced or flat fee commission.

I hope this helps out! Any additional questions, feel free to send me a message!

Answer 10

Just tell them you will only pay X amount - but remember, you truly get what you pay for!

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