The average sales commission paid to a real estate agent is 6% and yet it is regarded as a high price you seem to be paying, particularly, if you were to believe the economists who claim that real estate agents do not actually sell houses for remarkably more as compared to the asking price.
Now the question that arises is that if you are not able to get substantially more money while using the services of a real estate agent then why are you employing their services? The answer to this question is because real estate brokers and agents assure expediency. They are able to sell off houses much faster than the homeowners themselves, as per a publication by the economists of Stanford University.
However, if you desire to sell your house and also, hire the professional services of an expert real estate agent, you could explore the next few tricks to lower their commissions.
Offer Just the Half
The real estate broker’s commission is typically 6 percent, and that is actually split between the real estate agent for the seller and the broker for the buyer, and each one of them would be getting 3 percent each. However, this 6 percent is paid exclusively by the house seller. In case, you are planning to sell your house and then buy another one using the services of the same real estate broker, he would be collecting the 3 percent commission twice.
Tell your potential real estate broker that you would be giving 3 percent commission in total for selling your home that could be divided between agents from both the sides. Your real estate agent could be free to work out a deal as per his terms whenever he is hired to help you purchase another house. If you do not cut their commission into the half, each realtor would be getting a hefty amount twice for selling, as well as, buying a house. Of course, much of that amount would be going to the real estate agency but it certainly is a huge fee for just a few weeks of service. The realtors could seek the professional services of Realtor Commission Express so that they have a constant cash flow.
Consider Shopping Around a Bit
It is always a good idea to do some shopping around and explore various choices that are available to you. You could do ample research and shortlist a few agents. You may interview them and see which one is compatible with your requirements. Ask them how they would be selling your house? What price would the house be offered at and other minute details? When you take estimates from multiple companies at one go, for selling your house, they would certainly be very competitive and you could get the best deals.
Make Sure that You Are Getting Your Money’s Worth
It is necessary for you to make sure that you are not wasting your money. While hiring the services of a real estate agent or broker, it is a good idea to ask him precisely what services he would be providing. When you have determined the precise list of services offered by the agent, you could evaluate if the commission is value for money or not. Moreover, if a broker is demanding a higher commission, he must justify why he is asking for more. In what ways his services are an upgrade over the others. However, in the case of luxury house sales, the agents would need to spend a great deal on advertising in websites and publications for the affluent people. Additionally, the agent would be having more influential contacts as compared to any cheaper real estate agent/broker.
Keep the above-discussed tricks in mind while selling your home with the help of real estate agents. These tips could help you in saving some money on the commission for realtors. Moreover, you could delay the deal by waiting until you get a relatively higher selling price. This strategy may not be helping you in negotiating a relatively lower realtor commission but it would be helping you in paying for the service without deducting the fee from the asking price of the house.