The home purchasing or selling process may seem never-ending, in regards to what must be completed. It is as detailed as it can be challenging, with respect to what has to be done overall. One of these areas has to do with finding the right real estate representative. In order to get the most desirable outcome, this representative must know their craft.
However, with a good amount of experience behind them also comes a higher cost of servicing. If you feel that you are unable to fund your venture because of this, it may be time to negotiate. Thankfully, negotiating realtor fees, especially with respect to commission, is doable.
Below are the seven tips for negotiating realtor commission fees:
1. Shop Around
To begin with, your chosen realtor will be the most important real estate representative in the process. They will always have your best interests in mind, and will try to find you the best deal possible. That is why it is generally recommended to look around for potential representatives first.
Before you choose a specific realtor, you should get to know a few personally. Take a look at their professional experience, and discuss the ways in which they can best service you. Each realtor should have a number of years behind them, in addition to fulfilling client needs. It never hurts to do some initial research!
2. Research Market Trends
Researching market trends is another tip for negotiating realtor commission fees. The more informed you are as a potential homebuyer, the better your ability to negotiate will be. As such, ensure that you take a meticulous look at key market trends in your desired area. For example, inspect how much demand there is for homes in a specific neighbourhood. This grants you a bit of leverage, if you know how to communicate.
Moreover, you should also be aware of how much your realtor stands to earn from the entire process. You can make an educated assumption here using a couple of aspects, which are target rate and price. Since these factors are bound to fluctuate, it is in your benefit to at least know the basics.
3. Commission Rate
The market for purchasing homes can be as dynamic as it can be static. The result of this is a fluctuating rate for commission fees from a potential realtor. However, you can also try to find out what the general commission rate is in your targeted market. Some areas will necessitate a higher commission rate average than others.
Once you know what is typical in your specific area, you will be given a foundation to build off on. Just make sure that you negotiate reasonably with your realtor. Remember, these rates are always subject to change. You don’t want to potentially undersell yourself after all! As realtors, your commission may not be stable every month. There may be months where you don’t earn a consistent income due to your lack of sales. Thankfully, you can rely on commission advance companies, which provide you with more flexibility and stability with your earnings.
4. Investing In Upkeep
If you are selling your home, you’ll want to make sure you take the necessary actions at the onset. This means that you need to conduct various repairs and maintenance in and around your property. Pre-listing repairs on your end can make things much more viable for your realtor.
By taking the initiative on this part, you can potentially get a realtor to lower their desired commission fees. Ensure that your landscaping is kept in good condition, and paint over any surfaces that appear antiquated. The better your listing photos appear, the better the outcome will be for negotiation purposes.
5. Creating Value
Conducting maintenance around the home that is to be sold isn’t the only influence on commission fees. You should always look for ways in which you, the seller, can create value out of the transaction. For example, by conducting the marketing aspects yourself, you can save yourself a ton of money.
6. Offer a Competitor’s Price
Realtors are often trying to look for clients who want to sell their property as fast as possible. Negotiating fees can, as a result, often be overlooked, especially if you don’t know how to approach it. One of the best ways to initiate the negotiation procedure is to offer a competitor’s pricing rate.
This is one of the most useful strategies to use, when trying to get your realtor to lower their commission fees. That way, they will candidly work with you, in order to get a mutually-desired result.
7. Walk Away
Before the contract is actually signed between you and your realtor, things are always subject to change. If negotiations come to a halt, don’t be afraid to walk away! A better representative is out there, when it comes to negotiating fees to be charged.
Whether you are buying or selling your home, a realtor’s services will often be necessary. However, don’t think that their services are a done deal from the start. Negotiating is a useful tactic to use, especially when it comes to saving you money!
