Tips for negotiating real estate commission
6 minute read
January 30, 2021


No wonder selling a home is very stressful and complex. However, it is a smart choice to hire a real estate agent. It would guarantee a secure negotiation and boost the chances of having a decent deal by collaborating with an experienced seller. A successful agent will list the property at the correct price, advertise it, plan for a home visit, communicate with potential buyers, manage all the documents, and speed up the closing process. Selling the home via a real estate agent comes with a specific price. This means that each of the high expenses involved in selling the home is called the real estate commission. In this case, you need some tips for negotiating a real estate commission. Check out this article to get better advice.

Division of commission fee

On a commission-only basis, most of the real estate agents get paid properly. It is important to note that the real estate agent is probably not going to take the entire commission. They do an even division of this commission fee in many other ways:

  • All Marketing costs

A listing agent will spend a lot of money on ads to help the client find the best deal and reasonable price for the house. This covers investments including advanced videography, editing, ads on Facebook or Instagram, and home staging. Many of these changes have come from the same commission.

  • Splitting with the buyer’s agent

Also, the commission fee paid is usually shared equally between the selling agent of the real estate property and the buyer agent.

  • Splitting with the managing broker

A listing agent will divide the commission share with the real estate broker that they are working with. Among several other things, they would calculate the split according to the experience and qualifications, like how many properties they are selling per year. A beginner will have to settle for a 50-50 split. As a result when a star performer will reserve as much as 90% of the commission.

  • Other costs

Other costs will be incurred by the real estate listing agents, like parking, real estate listing fees, all type of licenses, and taxes.

Is it Negotiable?

By the way, the law does not control the fees for real estate agents. No matter which state or city you are present in, it is completely allowed to tell a realtor to decrease commissions. Most real estate brokers are trying to get business and can usually provide the seller few concessions. However, there is always room for negotiation with a real estate agent when it comes to fees.

Tips to Negotiate with a Realtor

Knowing what rate you are planning to apply for and justify why you think the low real estate commission is reasonable is the secret to negotiating a real estate commission effectively.

Some tips for negotiating real estate commission are as follows.

Offering to share some of the work

In brief, by managing any of the responsibilities involved with selling a home, you will reduce the real estate agent’s work. For one, you should make an effort to get your home ready to move in. To decorate up the interior, do some renovation and proper cleaning. To target homeowners, get rid of all the mess and focus on the curb appeal. You will host an open meeting of your own and place a signboard for sale in the home’s front yard. They are likely to be available for negotiating real estate commission when you make the real estate agent’s job relatively easy.

Selling the property in the off-season

If it is in the middle of winter or autumn, a great way of getting discounts on real estate payments is to sell the property in the low season. As all agents are likely to need some business during that period, they will be ready to work even at low fees. The one drawback of selling the property in the off-season is that you will negotiate real estate commission but fail to find potential buyers for the property.

Studying the real estate market

When you are in a nice neighborhood or present in a hot real estate market and are confident that your property will sell easily, you will use it to negotiate a real estate commission. To determine your area based on metrics, for example, money on cash return, total rental revenue, and occupancy rate, you will use the real estate google maps app. To figure out how many comparable homes sell around your neighborhood and how easily they sell, go ahead and do some comparative marketing research.

Early Vacating of the property

Another reasonable approach for negotiating a real estate agent commission is to leave your property early and leave it staged. When none occupies the property in several cases, real estate agents find it very easy to sell the home. To allow showings without any of the realtor’s existence, you will consider putting a lockbox in the door. Because of the comfort, your agent will be open to negotiating a real estate commission.

Buying the property with the help of a listing agent for all purchases, try using the same agent if you will be selling and buying a house at the same time. You will also use this as motivation to negotiate a commission on real estate. Please remember that if you change your mind afterward and wish not to shop with them, you will be in breach of the contract.

 The offering of multiple listings

Finally, establish a long-term partnership with your real estate agent if you are a real estate owner, and you plan to sell many homes in the future. Whether they will partner with you on future transactions, you will use this as a tool for negotiating real estate commission. For “fix-and-flip” real estate owners, such an arrangement performs exceptionally well.


It is not guaranteed to earn a discount on real estate commissions. It is about giving it a try. You can use the above methods to obtain real estate commissions or during house transactions, which may leave you with a little money in your wallet.

If you are looking for expert advice and guidance, contact Aceland mortgage.

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