Is a Mt. Washington Real Estate Agent’s Commission Negotiable?
Tracy King Realty
Apartments, apartment operator
When buying or selling real estate in Mt. Washington, you’ll need to form a relationship with an experienced Mt. Washington realtor who possesses a record of proven success. Homes in Mt. Washington, CA are always in high demand and whether one is buying a home or selling a home, large sums of money are going to be switching hands.
Real estate business structure is pliable because it is constructed by negotiations and compromises set on the intent of satisfying all associated parties. Agreeing on a commission rate is essential to any real estate relationship. The average commission rate is 6%, but it’s vitally important to remember that this sum will trickle down through other people before your agent receives it.
There is nothing wrong with asking your agent to lower his or her fee. The worst answer you may get is “no”. In fact, approximately fifty percent of sellers ask for a lower commission rate. It is uncommon for buyers to inquire about lower commission because it does not affect them. Some agents may have less flexibility to modify their commission because their brokerages enforce a minimum percentage. The commission percentage is typically split between the buying and listing agent and some agents may work for companies who take a large percentage of their commission.
There are specific circumstances in which an agent may lower his or her fees by a half or whole percentage. If the agent is working on becoming known in Mt. Washington, if they are selling a high-end house or selling in a “hot” neighborhood like Mount Washington, they may accept a lower commission. If a seller has multiple properties to sell at once, the realtor may produce a “group deal” and lower their rate. If you waive somemarketing services, like open houses or social media advertising they may drop their commission rate to compensate the time they will be saving. Lastly, if a seller takes an item that was supposed to come with the house, like the washer and dryer, the realtor may drop his or her commission by the price of a washer and dryer for the sake of the buyer.
To make the most out of your relationship with your Mt. Washington realtor, keep these tips fresh in your consciousness. Do not allow their share of the commission to drop below three percent. They need incentive and desire to put their energy into selling your home. If your real estate agent is working for a lower commission, be cognizant of standard prices to ensure that you wont get marked up for extra fees. If you are working with an experienced agent, appreciate their value and the years of experience they will utilize to sell your home for the highest price. An experienced agent with higher commission could get you a significantly higher price than a lower commissioned agent with less experience.
Before you select a realtor you should committo intensive research to ensure they are the right person to sell your home in Mt. Washington. Ask around your friends and neighbors and see what positive experiences they had with past realtors. Another useful source is the Internet. Any website such a Yelp that has reviews can provide “backend” insight to a potential realtor’s past work. Once you select a realtor, here are some questions to ask to see if they are right for you.
o On average, how long do your listings stay on the market?
o What is your usual commission rate?
o Do you have much experience selling homes in this area?
o What will be your strategy to selling my home?
Once you select a realtor and agree on a commission percentage, sit back, relax and let your Mt. Washington home be sold!