How to negotiate a lower commission from listing agent

1 Reply

When listing a house for sale, most people will ask for a break on the listing side commission. In order to be successful I recommend a couple of tips.

1) Make sure house is vacant. If it is vacant it is less work. I don't have to call you and find out you are having a family dinner that day and your daughter is having a sleep over the night before and we have to reschedule. It is rare I will ever go lower on an occupied house. Tenants....... Don't get me started.

2) Make sure you both agree on what the price to sell is. If the agent thinks it will sell at 150 and you are insisting on 180. They may take the listing to have a sign in the yard and some exposure, but every newspaper ad/minute spent is a gamble for them. Gambles require a higher payout. At least have a plan for getting down to where they are (after 10 days we drop 5K and then 5K every week until sold)

3) Don't ask me to be there at every showing. You would be surprised at the number of people who want the listing agent there at each and every showing (or a representative). I can do that, but odds are we are going with a higher commission as opposed to a lower one.

4) Have some sort of relationship. Knowing each other from a volunteer activity or kids share a sport are a good way to get a break.

5) Do more than one transaction, prices change dramatically when we are working in bulk and based on a price point. Refer a couple people my way and that also has a profound effect. 

6) If you are in a state that uses lawyers for RE transactions, choose one of the good ones. A rockstar lawyer makes things nice and smooth. If I know you are using (insert one of about 20 lawyers here) I know things are going to be good on our end and less work for me.

Just a couple thoughts and want to hear any others

@Mike Cumbie Awesome info! Thanks.

One thing I would add in is, use the same agent to buy your properties if you buy a market property so they get some commission on the front end too.