How to Pay the Real Estate Agent and Negotiate Your Commission

The real estate agent is an important part of the home selling or buying process. They will help you price your home, advertise it on the multiple listing service (MLS), negotiate with potential buyers and see your home sale through to closing.

However, there are questions about who pays the real estate agent and how the commission works. It can be confusing, but it is important to understand the real estate commission system and how you can negotiate the terms of your contract with your agent.

How to Pay the Real Estate Agent

Generally, in the United States, sellers pay a real estate agent a commission. This is a percentage of the property’s sale price and usually comes to about 6%. Sellers also pay a buyer’s agent, who shares part of the commission with the seller’s agent and brings buyers to the table. Read more

It is common for both parties to negotiate the amount of the real estate agent commission. Some brokers offer a sliding scale commission to ensure that agents earn more money as they sell more homes or increase their sales volume.

The average agent earns around $42,246, according to a recent study from the National Association of Realtors. That salary is primarily from commissions, although it can also be a flat fee for a specific listing.

How to Negotiate Your Commission

It’s often possible to negotiate the amount of the real estate agent’s commission, but it’s important to work with a broker who is familiar with local market conditions and can provide you with a detailed report on how your home would sell for the current market value. This information will allow you to make a better-informed decision about how much to offer for your home.

You can also use the MLS to research real estate listings and prices in your area. This will give you a good idea of what the average home is selling for and what your home might be worth in the future.

How to Find a Great Agent

You should always seek out a top-rated real estate agent in your area, who has years of experience and an extensive track record of sales. This will give you peace of mind that your agent is a skilled negotiator and will know how to get the best deal for you.

When you are ready to list your home, ask a friend or family member who they used and how they felt about the agent they used. This will help you to determine if the agent is a good fit for your needs and will make the process easier and faster.

Then, contact a few local agents to compare their services and ask about the commission split they offer. If they have a sliding scale, it might be worth considering.

It’s also important to ask if the agent offers discounts for new clients or if they’re willing to rebate any part of their commission to you if you purchase your home. This is a great way to save money, especially if you are a first-time homebuyer.