Posted on: 9 December 2020
When you sell your home, both a buyer and a seller real estate agent are usually involved in the transaction. Each real estate agent is paid a commission, with the funds coming out of the price of selling the home.
It is important to understand that your real estate agent's commission is not set in stone; rather, it is something that can be negotiated. There are various ways to save on the commission that is paid to a real estate broker.
#1: Flat Rate Commission
Instead of taking a percentage of the property's commission, with a flat rate commission, you agree on a flat fee that the agent will be paid. With a flat-rate commission, you usually get the same high level of care from the real estate agent. You will get an MLS listing, professional photos, and pricing assistance. The agent will help with showings and work on the closing. If you go this route, you won't be surprised by the total cost of their skills and services.
#2: Low Percentage Commission
Next, some real estate agents will accept a lower commission rate. This will allow you to reduce the home sale percentage that goes to the real estate agent. A low commission broker will still off your comprehensive services when it comes to selling your home. However, they may not be as available to you as if they were being paid the full commission amount.
#3: Hybrid Real Estate Commission
With a hybrid real estate commission, the broker will offer either a flat fee or a percentage-based fee based upon what services the real estate agent will take care of for you. Perhaps you want the real estate agent to handle the showings and closing, but you want to take the pictures, create the listings, and advertise your home for sale, essentially taking over part of their job. In that type of situation, you would then offer your real estate agent a reduced commission since they would only be doing part of their job, and you would be doing the rest of it.
#4: MLS Listings
You can also hire a real estate agent to list your home on the MLS, the database that real estate agents and websites use to look for properties for sale. In this situation, you only pay the agent for the listing so you take care of the rest of the sale on your own. The agent will not receive a commission for helping you sell your home.
If you feel that the standard commission paid towards a real estate agent is too much for any reason, there are alternative pricing structures to consider. Reach out to discount real estate agents to learn more.Share