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How Can I Negotiate Lower Real Estate Agent Commission?

-by A. Scott


Negotiating lower real estate agent fees is a common practice and can help you save money when selling your property, but many sellers are left asking themselves “How Can I Negotiate Lower Real Estate Agent Commission and Fees?”. Here are some effective strategies to negotiate lower fees:

Use an App to do the work for you!: Technology is a wonderful thing, and these days there’s just about an App for everything. Well it turns out there’s an App for negotiating lower real estate agent commissions and fees too! With bRight Agent you to post a few details about your property and then different real estate agents effectively compete for the right to represent your property by reducing their fees and commission. The best part is you could save thousands or tens of thousands of dollars in saved agent’s commission.

Research and Interview Multiple Agents: If you want to do things the old-fashioned way, take the time to research and interview several real estate agents. Look for agents with a strong track record, experience in your local market, and positive reviews. By comparing multiple agents, you gain a better understanding of the average commission rates in your area and can identify agents who may be more flexible with their fees. The down-side is you’ll probably need to open up your house quite a few times to let agents in for a look.

Leverage Multiple Offers from Agents: If you’ve interviewed multiple agents and received competing offers, you can use that as leverage to negotiate lower fees. Agents may be more inclined to lower their fees if they see that they’re in competition with other agents for your business – which is exactly how bRight Agent works. Use this opportunity to explain your preferred fee structure and negotiate a favourable rate.

Emphasise Your Property’s Unique Selling Points: Another great way to assist with negotiating lower real estate agent commission and fees is to highlight the unique features and selling points of your property during negotiations. If your property has desirable qualities, such as a prime location, recent renovations, or a large backyard, make sure the agent understands the value these features bring. By showcasing the potential marketability of your property, you may be able to negotiate lower commission or fees as its easier work for the agent to let the property attract its own buyers.

Consider the Agent’s Expertise and Services: When negotiating fees, it’s essential to consider the agent’s expertise and the services they offer. A highly skilled agent who provides comprehensive marketing strategies, professional photography, staging, and effective negotiation skills may be worth a higher commission rate. (Keep in mind that you can look at agents prices for staging, photography and advertising through the bRight Agent App as well.) However, if you believe certain services are unnecessary for your property or you can handle them yourself, you can use that as leverage to negotiate lower fees.

Consider a Performance-Based Commission Structure: Instead of a fixed percentage-based commission, you can propose a performance-based commission structure. This approach ties the agent’s fee to specific sales targets or milestones. For example, you could negotiate a lower commission rate if the property sells within a certain timeframe or achieves a higher sale price. Be aware though of real estate agents who try and turn these tactics around on you to incentivise getting your business ahead of their competition.

Seek a Discount for Referrals or Repeat Business: If you have worked with the agent before or have referred clients to them, you can mention this during negotiations. Agents may be more willing to provide a discount on their fees for repeat clients or referrals as a gesture of appreciation for your loyalty.

By following the above points you should be able to negotiate a lower real estate agent commission and fees. Remember that while negotiating lower agent commission and fees is important, it’s equally crucial to choose a reputable and experienced agent who can effectively market and sell your property. A service like bRight Agent can really help do the negotiating work for you and you still get to decide which agent you’d like to go with. You can then weigh the agent’s expertise and track record alongside their commission rate when making your final decision.