Typical Commission – Negotiating Realtor Fees

The typical commission a realtor charges can be anywhere from three to seven percent depending on the area and realtor competition in the marketplace.  In most every case the typical commission can be negotiated if you know how.

The challenge most consumers have when it comes to negotiating real estate commissions is they are negotiating against a professional negotiator. Realtors negotiate for a living and you’re hiring them to negotiate for you when a buyer is found.  When a realtor meets with you to talk about listing your property they fully expect you to ask or try to negotiate a lower commission.

Well, the truth is, nearly all realtors spend thousands of dollars during their career on education and training.  It’s safe to assume the realtor your interviewing is easily and fully prepared for the “Can you lower your commission” question. It’s not the first time they’ve been asked.

Sure, you can ask for a lower commission and you might even have a few reasons why to solidify your position.  But what happens when the realtor comes right back at you and responds with something like “I understand you want to save as much money as you can. Who doesn’t, especially in this market, right?  However, I have a proven track record in this town with the highest amount of sales. Even at my higher commission you will net more with me than any other realtor.”

Are you prepared for this?  Do you have a response?  Maybe, but probably not. Most consumers have not thought this far ahead.  Maybe you’re the exception and can come up with a brilliant and effective response and get a lower commission.

But, wait. Not so fast.

Remember, the realtor has spent time, money and energy to overcome your objections.  Don’t think one measly, brilliant comeback is going to make the realtor crumble to the floor, beg you to stop negotiating and throw in the towel.

Hardly.

In order to negotiate and pay less than the typical commission you need to learn the ‘lower my commission’ objection handling techniques that realtors learn. Secondly, you’ll need to come up with responses to those objections handling techniques. Only then do you have a chance.  Only then can you negotiate from a position of power.

In summary, the typical commission is three to seven percent and it can be negotiated. If you take the time do the research you’ll find negotiating real estate commissions is not hard. Once you can anticipate the responses that a realtor is most likely to give when you ask them to lower their commission the more likely it is you’ll pay less than the typical commission.

Learn how today.