Updated: Mar 14
It is no secret that selling your house is an intensive process there is getting your home ready to put on the market, taking the professional photographs, listing on the MLS, showings, dealing with buyers, and agents open houses virtual tours contracts, paperwork lenders appraisals, and the list goes on. It is a lot of work, and paying a real estate agent to handle that work for you makes a lot of sense but guess what? Most home sellers give away thousands of dollars in unnecessary commissions to real estate agents.
People believe a few very costly myths do any of these sound like you; do you believe that using a really good agent means paying a standard or even a premium commission, or do you think that only bad real estate agentsr will discount their commission. Perhaps you think negotiating with real estate agents is hard and is not allowed for some reason. Well, we can tell you it's all simply not true you do not have to pay high commissions to a real estate agent. Commissions are 100 negotiable, and getting the good agents to sell your house for a reduced commission can be easy if you know the correct things to say. That is why we are going to teach you five simple but very effective negotiation tips that agents don't want you to know.
So Let's dive right into these five powerful tips to ensure you don't overpay an agent when selling your home.
1. Buying and selling with the same agent:
If you plan on selling your home and buying a new one in the same area, you can use the same agent and try to negotiate a lower home selling commission or a buyer rebate on the purchase of your new home. A smart agent will understand the value of getting paid a commission on both selling your current home and helping you buy your new home. You will have even more leverage if the new home you are purchasing is at a higher price point because it means more money for the agent. Don't expect agents to offer to do this without you asking for it.
2. When your listing agent finds a buyer directly:
Typically there are two agents in each real estate deal the listing agent that represents you, the seller, and the buyer's agent that represents the buyer. The average commission that you will pay as the seller is around six percent and is split evenly between both agents. A good way to negotiate a lower commission is for you to ask the listing agent if they will lower their commission if they represent the buyer in the deal too. They will be receiving both sides of the commission when this happens. It most likely means that they did not have to do all the work a buyer agent would have to normally do for their clients, such as driving the buyers all over town to show them multiple houses, submitting many offers, and all the other tasks involved with finding a home for them. In this scenario the agent will only have to do that once because they are doing less work it means you can ask them to agree to lower their commission when they find the buyer directly. It is one of our favorite tips that most agents will agree to do.
3. Make it easy for them to sell your home:
Sometimes houses can be difficult to sell for a variety of reasons other times they sell themselves a good agent will walk you through how to get your home market-ready so that you have the best chances of selling and getting the best deal possible. The funny thing is not everyone makes it easy for real estate agents to do their job. Most real estate agents can spot a difficult seller a mile away but they still try to help them out even though it means a lot more work on the agent's end to sell the house. As professionals, they have to take on the good and the bad clients. If you are agreeable to the price the agent recommends getting your home looking its best by doing a little maintenance and staging and you will be flexible with showings this will position your home for a much faster and easier sell.
Again less time and work on the agent's end means an opportunity for you to negotiate a lower commission. Most agents won't see this coming from you and might be caught off guard, so be prepared to sell the idea to them by explaining the benefits to them. Now that's a great example of turning the tables on a salesperson.
4. Consider a rising star real estate agent:
Top real estate agents can be so busy that they often have to turn away working with some home sellers which can make it really hard for you to negotiate a lower commission with them. However, there are a lot of agents that are still building their business and because of that they have to spend a lot of time effort, and money to market themselves to find new clients which is an opportunity for you to negotiate.