Money Saving Tips - Real Estate Commissions

The Truth About The Fees and The Commission

Advice Seeker: Dear April,

I'm selling my house which is of course a complicated experience. I've hired a competent real estate agent, but I'm not sure if he's doing all he can. What ways can I get more out of the agent's commissions?

Sincerely,

House Hunter

April Masini's advice:

Dear House Hunter,

When it comes to what you can get out of the commission, always ask!

The worst thing that can happen to you, as a buyer or a seller is not asking. It isn't having someone saying no -- it's never asking at all. Because you might get a yes, or you might get an agent to work with you to reduce your fees.

Here are some ideas you can use to reduce fees:

*Know the real estate market in the area in which you are buying or selling. Markets differ by locale. Just because there's a national trend does not mean that it's affecting the area you are buying or selling in. Educate yourself on your area.

*Know the agents. There are certain agents in your area who specialize. Some specialize in big commission projects with big price tags. Other agents specialize in condos. Some agents specialize in certain areas -- high end, low end, medium, etc. Some agents are new and hungry for commissions. They may be more likely to take a cut in commission price in order to get your business. Big honchos will not. Some agents will take cut in commission if you allow them to represent you in buying a new property as well as selling your old property.

* Be clear about your price. If, in the middle of negotiations, an agent knows that you will walk away from the deal because there is a $5,000 discrepancy, the agent may kick in the $5,000 (or whatever the amount is) because it is worth that much money to get the deal closed and collect their commission, and it is not worth that amount of money to have the sale fold. Remember -- if there is no sale, they get no commission no matter how hard they work.

* If you feel your agent is lazy, decide not to allow them to represent you on the purchase of a new property -- just let them finish up the sale of your current property. Many buyers and sellers take care of the agent's feelings instead of their own wallets. It's business. Keep your eye on the ball.