Can I negotiate the comission that the buyer's agent will receive?

Question

I am looking into selling my house on my own, with some flat fee support. Can I negotiate with the buyer's agent on their commission, or should I just give the 3%? I'm looking at the 3% commission being $11,000-$13,000, which doesn't sound like much, but I am probably going to have to sell the house already for less then I owe and make up that difference with a personal loan. Just curious if the commission was negotiable.

FYI: Renting and waiting is not going to be an option for me.

Answer 1

The commission is somewhat negotiable. While these things vary by state, your contract is generally going to be with the Listing Broker, and you can agree to pay whatever rate you both decide on. You do not have to pay more than this, and how the Listing Broker shares it with the Selling Broker is their affair, not yours.

When an agent comes to you as an unlisted owner, they are basically asking you for a restricted listing, one valid for a single buyer. You can set the commission at whatever you want to, percentage or flat amount.

If you are foreseeing the prospect of bringing money to the Closing table, I strongly recommend you consult with a competent attorney who handles real estate, and talk about "short sale". If this is successful, you will bring less to the table, if anything at all. It's worth checking into.

Answer 2

I assume you are using a limited service agency to get your house into the MLS. The commission is negotiable with the buyer's agent, but if you go too low, it is unlikely your house will be shown much. There are so many houses on the market and if you really need to sell, you need to give your house every advantage.

One thing that is showing up a bit in the local MLS is a flat compensation to the buyer's agent. Rather than offer a percentage, the seller is offering a set dollar amount. Something to consider.

Good luck.

Answer 3

Now is not a good time to sell a home...hang in there as long as possible as the outlook for next spring renewals is not promising either...

We are borderline for a recession right now and the housing market will grow worse if that happens...as if it could get worse...! Foreclosures are out of sight in all states and those that are selling can expect to sell for 10% - 40% less than market value if they cannot wave the storm... There goes the equity, right...?

Your "buyers' agent"...??? That agent deals with the buyer, not with you. If he has an agent finding him a home to buy then his numbers are with the buyer, not you, and he may charge the buyer a flat fee or a percentge fee which is out of your interest or control.

If his agent is not a broker then part of his commission goes to the brokerage firm in states that require a real estate agent must be a broker or work for a brokerage. However, your thought is not out of place and it never hurts to talk with the agent. Times are really tough and he may settle for less as less is better than nothing, right...?

As the process goes, "you" set "your" selling price and may or may not add a commission into it if having an agent of your own. Then, an interested party will consider your selling price and then negotiate a lower price. You do not have to accept that and can make a counter-offer to his offer or he will make another offer. No deposit is made until an offer has been accepted...

What "you" must be careful of are hidden costs for closing, demands for land survey, title insurance, home repairs, local inspections for safety, local inspection for insect control and complying with upgrades required for plumbing, sewerage and electrical that may have been grandfathered in to the previous owner...

It's a shame your situation is such as to sell and still have to pay off later. It would seem best to negotiate a mortgage change with another company...a fixed mortgage rate for a longer period would seem best for you if able to make extra payments when affording...

It seems the pleasure of owning a home has become a nightmare...and renting one or an apartment seems getting worse despite lesser responsibilities...

Good luck...!

Answer 4

If you are using a 'flat fee' service to gain entrance to the MLS, the listing firm will ask you what percentage (or flat rate) you are willing to pay to an agent who brings you a buyer. This percentage or flat rate shows up in the MLS on your listing so that interested agents can understand what you will pay. Guess what happens to those listings with "low pay rates" for agents who will bring a buyer. Yup, they're going to pass by YOUR listing in favor of showing others which will pay them a higher rate for their work.

These flat rate services have come into our MLS within the past two years, and I know of NO agent who has not learned to look at what is offered for pay before providing information on a property to a prospective buyer.

Take it for what it's worth.

Answer 5

i'm assuming this your are selling the property yourself?? If this is the case, then you can't really compromise their %, you'd just have to ask for more on the property to compensate your loss.