How to Negotiate Real Estate Commissions

As a real estate agent, you’re likely to come across sellers who, for whatever reason, can’t meet their real estate agency’s commission demands. Typically, this will be for the services they will be providing to you.

However, in the real estate industry, the services a person undertakes in order to represent a seller and buyer are practically the same as those a buyer would seek from a real estate agent.

As such, a seller will always aim to get the most value for their home, no matter where they ultimately end up, so it follows that any agent attempting to determine how much a particular seller can reasonably expect to be compensated for services provided should help learn a thing or two about the terms used in the real-estate industry!

When we make someone an offer, we stand by that offer. We buy houses Louisville KY with all cash.

First Thing in Real Estate

The first factor you will need to induce a far greater pity is what constitutes a commission. An actual estate commission, or earnings unit, is the fee that you and a property broker can split on the sale of property & these earnings units are required by law to be paid to the broker from the vendor, even if a commission is ultimately awarded to the client.

Real estate agents & brokers recommend that a fee of 3% of the final sales price be paid to the agent. However, some can raise additional money & some can even receive less, but all of them can generally agree that the share eventually paid is usually negotiable.

For example, the share will usually vary depending on factors like whether or not the property is house-supply prepared, whether or not the merchant could be a short-selling vendor and more.


Many real estate brokers & agents refer to these percentages in terms of percentages that represent the buyer’s portion of the cost of the overall deal. For example, say that a broker is being paid a 3% fee by the buyer for the purchase of the home & then say that the seller is also entitled to 1% of the final sales price. This would mean that a typical real estate deal involves the agent getting a fee of 2% & the seller getting 1% of the final sales price.

However, this is not the only way that these percentages are typically perceived by the industry & because of how it is drafted up. For example, in many cases, the seller’s agent will pay part of the buyer’s real estate commission, which means that the seller will essentially ‘ duplicate ‘ the work that the buyer’s agent is doing for the seller.

This is absolutely standard practice in any real estate transaction and works to the benefit of all parties. No wonder the number of buyers & clients who pay fees to various real estate agencies sometimes ends up being higher than it appears to be!

Furthermore, the share could be a mounted percentage, which implies that the ultimate claim is the same for each deal & in spite of however huge or little it’d be. As a result, the ultimate share is what the vendor really collects from the deal.


The bottom line?

As a property agent it is important to know that your earnings & commissions are based around the selling price of the house.

This means that no matter how you try to negotiate a lower commission & you are never going to see a difference in the percentage of your earnings. Don’t forget that.

We buy houses Louisville KY and all surrounding areas in Kentucky and Southern Indiana. If you need to sell your house fast in Kentucky, connect with us… We’d love to make you a fair, a no-obligation and no-hassle offer. Take it or leave it. You’ve got nothing to lose 🙂

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