How to Negotiate Realtor Fees and Commissions

In most cases you?ll run into one of the following scenarios when negotiating a Realtor?s Commission.

?Buying the Listing?

I call this group ?Buying the Listing because they will list the home for whatever the Seller is willing to pay.

You?ve heard the term, ?you get what you pay for?, correct?

My opinion on someone that?s so desperate they?ll list the home for anything makes me wonder how strong their negotiating skills are and the quality of marketing they do.

The other thing you have to keep in mind is that the Buyer?s Agent needs to get paid to, so how much is the Listing Agent really walking away with? In most cases the Buyer?s Agent gets a minimum fee, which means the Listing Agent is really doing themselves a disservice by listing it for whatever they can get.

I also have to wonder how much they know about Real Estate and how strong their Marketing Program is if they don?t stand out enough to get the commission they deserve versus settling for anything they can get.

Agent ?Stonewall? Jackson

You can probably already guess what direction this agent will be going. They?re pretty much the polar opposite of the Buying the Listing Group. In this case they claim they won?t lower their commission, because you either pay their fee or they?ll do less to market your home.

Agents already get paid plenty, so there?s no reason to gouge consumers by doing less when most marketing activities are pretty inexpensive any more.

The reality is this group will lower their commission the minute a potential clients decides to decline using them as an agent. The Stonewall Jacksons of Real Estate really aren?t any better than the Buying the Listing Group in my opinion.

Picking the Right Agent

When it comes right down to it the right agent is the one that can explain what?s going on in the market. Someone that will talk about regional market conditions, the community your home is in all the way down to your neighborhood and price bracket. Agents that can explain these factors with competency are the agents to use.

The other strength is how effectively they deliver their Marketing Plan for your home. If you?re interviewing an agent that can?t do either one of these then they?re probably not the right one to hire.

Negotiating Realtor Fess

There?s really not much to negotiating Realtor Fees now that you know some of the strategies some agents use. What you may want to do is use this as a test to see what kind of agent they are and what your comfort level is.

Once you know your comfort level then you can decide what direction to go.

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Eric Hempler is a Minnesota Realtor with the Agent Referral Network and works in conjunction with RE/MAX Advantage Plus on the Minnesota Real Estate Team, #1 Real Estate Team in Minnesota since 2006.

Eric Hempler can be reached at 651-491-3393 or EricH@MNRealEstateTeam.com

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Source: http://activerain.com/blogsview/3500630/how-to-negotiate-realtor-fees-and-commissions

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