How to Negotiate Real Estate Commissions

When it comes to selling your real estate property, hiring a real estate agent is a very good idea. He or she will do a lot of work for you and that work is quite valuable. However, the commission at the end of the deal can be a really hard pill to swallow. Unlike your residential movers NJ, real estate agents will ask for a hefty commission for their services. You can negotiate real estate commissions. It is definitely not easy but it is quite possible.

You will most likely lose out on some of the agent’s services, as any agent worth their salt knows how much their work is worth. There are several other solutions, such as finding the agent through referral networks. However, if you are dead-set on negotiating with any agent, this is what you need to know:

Why do you need a real estate agent?

Before you can get into negotiations, you need to realize what exactly your agent is doing for you. Is he doing marketing? Is he doing the listing? And so on. If you do not have enough expertise to do a particular task, that is why you need someone who does. And that costs. There is quite a bit of money on the line and you want to know that you are doing the best thing. You really need to know how to hire the best real estate agent. Hiring a real estate agent gives you that sense of security, that your property is in experienced hands.

negotiate real estate commissions - hire an agent!
Having someone to do the negotiating for you is invaluable!

What do real estate agents actually do?

If you want to properly negotiate real estate commissions, you need to be aware of the particular tasks that your agent is performing. Some of them are:

  • Listing your property (so it is visible to the right people)
  • Preparing marketing material (such as signs and flyers)
  • Holding an open-house (so people can come in and check the place out)
  • Making sure paperwork is in order

However, that is not the only thing your agent does. As you want to negotiate, which is perfectly normal, there are other people with the same idea. Your agent is the shield that keeps them all at bay and makes sure that you get the largest price for your property. This can severely reduce the stress that you are exposed to.

 

How to Negotiate Real Estate Commissions – Find the Right Real Estate Agent For You

Now that you are aware of what your agent is doing for you, and how much is that worth, it is time to find a real estate agent that is a perfect match for you. Negotiating is a skill and it is a skill that your agent absolutely needs to have. What you need to do is “feel” the agent out, start negotiating and see how he reacts.

Before that, however, make sure that the agent you contact is experienced and quite knowledgeable in real estate and that he sold similar properties before. Then you need to make sure that he or she is quite friendly and approachable. It is really important that you and prospective buyers are comfortable around the agent. You want them thinking about professional packing services NJ after a brief talk with your agent. It is also important that they feel that they can ask questions which will be answered.

Lastly, your agent needs to be a great negotiator. Now, I know what you are thinking “if he is a great negotiator, how am I supposed to negotiate real estate commissions with him”? Well, you want the agent to negotiate the best price for your property, right? You can see straight away how good the agent is when you try to negotiate the commission rate.

cardboard house next to few stacks of coins
If you want the best price for your property, a real estate agent is invaluable!

Tips for negotiating with your agent

The best time to start to negotiate real estate commissions is right at the beginning when you hire your agent. If you want to be in the best spot when it comes to negotiations, this is what you need to do:

  • Do the prep work
  • Be in command
  • See what the agent can bring to the table
  • Explain what you need and what you don’t need
  • Make sure to use any leverage

Do the prep work

You need to make sure you know what type of market your property belongs to before you start the talks. It is completely different if the market is a seller’s market or a buyer’s market. If the property is easy to sell, you will have more bargaining power. Make sure you get as much information as possible about the property that is similar to yours, and it is in the same area. Be aware of what is the best time to sell your house. Of particular note are two facts: How much did the property sell for and how quickly it was sold.

Negotiate Real Estate Commissions – Be in command

Your needs are what is most important here and you need to know it. You are the ultimate expert in what your needs are and that is a bargaining chip. Make sure to be in command of the conversation, ask questions about the real estate services that you will receive. Only discuss the price after you are sure that you and the agent are the right fit for each other.

See what the agent can bring to the table

Make sure to ask the agent what can they do for you, what is their working process, how they do the marketing and how do they deal with any offers. You are making sure here that the services that your agent will provide are the services that you want.

desk with laptop on it
Make sure your agent is adding value to the table.

Explain what you need and what you don’t need

Also, you need to let the agent know what exactly is it that you require and what you do not require. Perhaps you do not wish to have a website or you do not want to send out emails to other people. The best way to cut down on the price is to have something that would be provided for the agreed price but you do not want or need it.

Make sure to use any leverage

This part combines everything from above, in order to give you the best possible leverage to negotiate real estate commissions. You start by thanking them for their time and saying that you acknowledge their expertise. Then you let them know which services you do not need. Finally, you use the prep work, if applicable. You let them know that the houses sold real quick and ask them politely if they are willing to work for a lower commission.

And in most cases, they will be. And you will learn a lot from their stance on negotiating. It is almost a win-win situation. Just make sure not to overdo it and to lose a valuable agent in the process.

 

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