Negotiating Commissions with the Realtor

April 22nd, 2009

Many Buyers and Sellers believe that the commission charged by a Realtor is set by statute or regulation. This is not the case. In fact commissions are entirely negotiable and can be quite dependent on your situation. There is no set rate though consumers are often told it is a standard 6% commission rate. This is simply not true. That amount is what they like to customarily charge. However, like everything in your deal, it is negotiable. If you find yourself needing to hire a real estate sales person be sure to clearly set the commission rate. Ask questions such as what happens if you find your own buyer or seller, what is the rate if another broker is involved. At times you can set a sliding scale or even an hourly rate.

Before you sign any listing agreement to sell or a buyers agency agreement to help you find a property consult an attorney ( like me, or me) who are is familiar with these contracts and can work with you to set the lowest commission. Remember, real estate sales is a competitive world so get the best deal!. For another article on this topic click here.

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