Real estate agents work much harder on homes that are not move-in ready, so it is your job to make the home look as attractive as possible. Curb appeal is vital to excite buyers, and the interiors should be clean and clutter-free. You can even hire a professional stager connected from Lawsuits Threatening Agent Commissions: Moehrl v. NAR, for instance. You compare and weigh things up to make your home look its best.
Negotiation
The National Association of Realtors (NAR) recently stepped in to open the door for home sellers to negotiate commissions with real estate agents. The association hopes the new guidance will change how consumers view the value of real estate agents’ services and encourage open communication between sellers and agents. Negotiation has been a longstanding right of consumers, but the real estate industry has historically defended its traditional fee structure.
While many agents are apprehensive about the process, they can set themselves up to negotiate the commissions they deserve if done correctly. The first step is to be transparent and show your clients that you appreciate their business. They’re unlikely to give you the commission you deserve if they don’t see that you appreciate them.
Understanding Commission Structure
If you are working with a real estate agent, you should understand how their commission structure works. Some agents have a fixed split, while others have a tiered structure. Both types of commission structures have advantages and disadvantages. First, the fixed split is easy to understand and makes accounting operations more predictable. Second, it doesn’t give agents much incentive to increase their production. Consequently, a high-volume agent may be tempted to work elsewhere. Despite these disadvantages, most brokerages use the fixed split because it’s simple and does not require a lot of internal capacity.
When you list your property with a real estate agent, you agree to pay them a certain commission rate. This commission is typically between four and six percent. Sometimes, a seller’s agent will split the commission with another agent. The listing broker then pays a portion of the commission to the buyer’s agent and distributes the rest to the other agent.
Including Pricing Information in a Marketing Pitch
One simple way to fight for real estate agents’ commissions is to include pricing information in your marketing pitch. In addition, the NAR has released guidance that encourages frank conversations about commissions with consumers. While cutting professionals out of the transaction is not the most effective way to empower consumers, providing them with information will help them become their advocates.
Dual Agency
Dual agency is not legal in some states, and you should avoid using one agent to represent both parties in a real estate transaction. This practice puts the buyer and seller in an unequal position and can even result in conflicts of interest. To avoid this, always use a real estate agent solely focused on representing you.
Dual agency can benefit both sides, but it can also cause ethical concerns. It is important to know that the listing agent will always be compensated for services rendered to buyers and sellers, but that does not mean that you should be forced to work with them.
Getting a Buyer’s Agent Commission
If you’re a buyer interested in purchasing a home, you may wonder whether you should get a buyer’s agent commission. After all, real estate agents typically charge their clients a commission, which will almost always be factored into the price. The good news is that you can negotiate a higher cut than the seller’s agent offers.
Before negotiating your commission, you’ll need to compare the price of your home to the median sale price in your area. Usually, this will result in a lower commission. Moreover, it’s also possible to negotiate a lower commission if your home sells quickly, which is an advantage.