Negotiable Commission When Buying a Home

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All commissions are typically negotiable in the state in which you are planning on buying a home. Learn how to negotiate commission when buying a home with help from a managing broker with Windermere Real Estate in this free video clip.

Part of the Video Series: Real Estate Questions
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Video Transcript

Hello, Jim Jacobsen, managing broker, Windermere Real Estate, Seattle, Washington. The question today is the negotiation of commissions, and in our state, all commissions are negotiable. The firm actually is the one that has control of the listing and the agent is just the individual who markets the property for the firm. However, all commissions are negotiable and I think that you sit down with the client and find out at what level they would like to see their property marketed. I'd like to give you an example and it's only for example purposes but let's say that we are looking for a 6% commission on a piece of real property. In our particular case, the commissions are split between the listing firm and the selling firm so each office would receive a commission of 3%. Now at the beginning of this you would negotiate the listing whether it be a 5% or it could be a 7%. It could be 8, it could be 9, it could be lower than that. It really is determined on what you are going to do to market that property and the cost associated with marketing that property. So if I've got a very exclusive property and it's going to be in some form of premiere listing and we're going to be doing a lot of extra things that are costly, that's all going to be determined and many times it's actually paid for upfront by a client. Again a negotiable situation, that would be just an example or for instance, we might be doing some video or we might be doing some magazine work or additional which would be above what would be normally done on a listing. That's all negotiated. At the same time, we might negotiate the other way with the client. Again the client might say to us, you know, we want 5 or 4, whatever percent they may want. Again, that's negotiable. There's nothing set in stone.


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