Few home sellers are aware that the Realtor commission for selling their home is negotiable. You should consider the broker's "offer" for the commission to be a starting point for negotiation. Why?
The biggest reason is due to such high property values. When the average home is $280,000, a 6% commission is a whopping $16,800. While Realtors will want that much, seldom would they object to getting paid a "mere" $11,200 (4%). And some "discount" places like ZipRealty and Assist-2-Sell only charge 1-2%.
So, if you are selling your home, don't be afraid to negotiate that commission - it can put thousands of extra $$$ in your pocket. Especially with more and more homes reaching the $500,000 value.
1 comment:
I successfully negotiated for my Realtor to contribute 20% of his commission toward my closing costs at close of escrow of my new home. Furthermore, because the house was a foreclosed home, the bank wanted to dump it and not only discounted the price of the home but also paid a full 3% toward my closing costs. These two combined not only attributed to getting me into the house with no cash out of pocket but also paid 2 points on my mortgage!
How's that for negotiating closing costs! Oh, and by the way, thanks Bill for teaching me how to think in such ways. A Simple Man's Guide To Real Estate is not just for investors, but anyone wishing to buy or sell a house for any reason.
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