Discover How To Pay Less Real Estate Commission
Discover how you can save on the real estate commission on the sale of your house. Contrary to what most real estate agents would have you believe, their commissions are not set in stone. Real estate agents don’t like to discount their high commissions unless they have to.
This latest recession/depression has put a big hurt on real estate agents and brokers. With home sales down many agents are not selling as much as they used to. Life on easy street has changed for many of them.
How much commission does an agent make when they sell a house? The agent who takes the contract to sell your home is called the listing agent, and the agent who brings the buyer is called the selling agent. Sometimes they’re one and the same. The split between the two agents is usually 50/50. So, on a $150,000 home, the “preferred commission rate” is usually 7%, or $10,500. The listing agent gets half, or $5,250 gross, and they have to pay their broker half of that. So they end up with $2650. If they are both the listing and selling agent they will make double, or $5,250. That’s a lot of money for just a few hours’ work.
How to find an agent that will negotiate their commission. Large real estate agencies typically do not like to discount their fees. The best bets are the smaller, independent real estate agencies. They can make the decision themselves without having to get permission from the home office.
Next, develop a list of all the local independent real estate agencies in your area. Your local yellow pages or internet is the best source for this list. Then call each one, let them know you’re interested in selling your home, and start asking questions to qualify them, such as: “Do you sell homes in my neighborhood?’ “Are you full-time or just part-time?” Last year, how many houses did you sell?’
By asking these questions, you’re letting the agent know that you’re qualifying them over the phone, and that you’re in charge.
Ask them directly if they will lower their commission. If they hesitate or say “no”, thank them for their time and call the next agent on the list.
If their response is positive, get their cellphone number and tell them you’ll be scheduling interviews in a few days. Try to get at least three agents to compete for your business.
When you call them back, give them your address, and ask them to prepare a marketing plan for your property, along with a proposed commission rate.
When you meet with the agents do not sign a contract or make a commitment on the spot. Many agents will try to “close the sale” and walk away with a listing. Tell them you haven’t finished interviewing all the agents and you’ll get back to them. Be honest with them if someone else is offering a lower commission rate.
When your satisfied, pick the agent that gives you the lowest fee, and the one you’re most comfortable with. Now, let’s get started
To save money on your home sale, visit Houses for Sale in Greenwood SC or Lake Greenwood SC Properties
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