How to Negotiate the Realtor's Typical Sales Commission

Realtors anticipate the Lower Your Commission request. Home sellers will learn step by step what's needed in order to negotiate effectively and demand a lower commission regardless of how well trained and experienced the realtor is.

Difficulty: Moderate

Instructions

Things You'll Need:

• Internet access
• Confidence
• My e-book

1. Determine the average time the Realtor contributes to servicing your listing from day one to close. With marketing, advertising, maintaining, negotiating, etc., you'll be suprised at what realtors charge per hour. Who needs to make that much per hour?

2. Determine how much money the realtors spend to market a listing. Most realtors pay an set annual fee for the mls and internet listing sites regardless of how many listings the realtor takes throughout the year. Once you find out the cost of signs, brochures, locboxes, etc., you'll be shocked at how little is spent compared to how much is charged.

3. Find out what is effective in selling property. Realtors have a laundry list of things they do during the listing. However, consistently and statistically, only three actions stimulate sales. Once you find out what realtors actually do that require skill you'll be shaking your head in disbelief.

4. Research your agent the agent being interviewed. How many sales has that realtor made? What is their success rate? How long is their average listing on the market for? Find out as much as you can about the realtor and their experience.

Tips & Warnings

• Once you confront a realtor with hard facts of time, money spent and skills required you'll negotiate from a postion of power
• Always be courteous and nice
• Negotiate with confidence. Remember, you've done your homework.
• Whatever the realtor response always downplay their value.
• Remember, you're in command. It's your money. Spend it wisely.
• Realtors, in many cases are highly trained negotiating experts. They will anticipate the "Lower Your Commission" request.
• Realtors will have an arsenal of tools to counter the commission request.
• Be prepared for resistance. Realtors don't like to give away 'their' money.

Resources

• Negotiate Realtor Commissions