Are Real Estate Commissions Negotiable? The Answer May surprise You.
The last time we checked, houses were not made of money. Real estate and ownership of real estate remain a great vehicle to accumulate wealth, but like everything else today there is a great deal of information out there that may not be 100% accurate. When deciding to sell a home one of the first questions a potential Seller may ask is along the lines of "What is your Commission?" Upon hearing the answer, many people follow with "Is your commission negotiable?". Despite what you may hear, the answer is "yes", and make SURE it is approved IN WRITING by the Broker. A little-known fact is that an earned commission actually "belongs" to the Broker and is then divided accordingly with the Realtor® (s) or Agent(s) involved in the transaction as spelled out by their Brokerage agreement. That's why it's important to get this confirmed in writing from the Broker because it can be agreed to by the Realtor® or Agent, but the ultimate decision belongs to the Broker. If you're vetting someone to help you sell your property and they tell you that the commission is not negotiable, it's time to politely move on to the next interview. The correct response would go something like this; "of course commissions are negotiable, but selling real estate is very complicated and I'd like to be able to demonstrate the ways in which we earn our fee..." or something to that extent. As we've stated on countless occasions, it is possible to sell real estate on your own, but we strongly encourage the use of a Realtor®, Agent, or Attorney (and using both is also a great idea when you examine what is involved and potentially at stake). Now, knowing that commissions CAN absolutely be negotiated is one of the many reasons we created PropertyGuerilla.com as we did. Because our platform excludes literally no one from posting their Buying or Renting needs (Want to Buy or want to Rent, WTB/WTR), we also don't exclude anyone from responding either. So, imagine this conversation after the question about "negotiable commission" as both a potential Seller after using our platform and then asking a potential Realtor® or Agent the same question. It may sound something like this; "Do you think you'd be willing to discuss a lower commission rate if we already had a qualified Buyer, had agreed on a tentative price as well as a closing time schedule, had their proof of funds and/or pre-approval letter, and we just need you to facilitate the deal from contract to close?" The time, effort, and expense to produce a Buyer is a large part of the earned commission, and contrary to popular opinion it's not as easy as it may appear! We never question the commission model of doing business...but if much of that is already done, then shouldn't the negotiation be that much easier, and the end result be just as fair to everyone? Those are just one of the types of real estate transactions we wish to engage in. How about you? if you'd like to learn more, visit our website and go through the FAQ's and if you still have questions e-mail us direct at info@propertyguerilla.com and we'll be happy to help! #realestate #commission #negotiablecommission #realtor #broker #agent #propertyguerilla #buyingrealestate #sellingrealestate #rentingrealestate