Many home sellers are rethinking their stand on hiring a real estate agent. The high commission entailed in the sale of their homes is what makes them have second thoughts. Not surprising, many have pursued their home sale on their own with great success.

Real estate agents are actually not to be feared when commission is being discussed. The truth is, they do accept commissions lower than the required six to seven percent if negotiations go well. It’s just a matter of explaining your situation to them.

Threats to agents

There are a number of reasons why agents now go for lower commissions. One is the emergence of web sites on the internet that offer free services such as home estimates and listings to home sellers. Some sites even allow consumers to buy and sell homes without benefit of a personal visit to the property. Other sites allow sellers to select and pay only for the services they need. On the internet, everything can be done from appraising the value of your property, marketing your home to closing the deal with your buyer. The internet technology has indeed put pressure on real estate agents these days.

Another threat to agents is the existence of discount brokers who charge more affordable fees and even offer rebates to buyers. Some sellers would rather use these discount brokers and save money than pay thousands of dollars in commissions to agents.

Home sellers today have more choices for lowering real estate commissions thereby allowing more savings. No longer are they pressured to pay the standard six percent commission to the agent or sell on their own. Real estate commissions have actually dropped in recent years to an average of 5.1 percent across the U.S. and if negotiated in the best possible way, can even go lower.

Negotiating commissions

Agents for buyers and sellers normally get a total of five to six percent commission from a typical home sale with the commission take from the seller’s proceeds. But with the presence of discount brokers and flat-fee services, some real estate agents are now open in accepting lower rates of two percent or even less.

You can negotiate for a lesser commission by first asking several agents in your area to provide a free market report with an estimated sales price of your home. Discuss with each agent your expected proceeds from the sale and request for a lower commission. You will probably be lucky if your house is at the high end of the market with a value of at least $1 million. If you get a negative response, just thank the agent and inform them that you’ll be getting another agent in the coming weeks. Who knows, they might have second thoughts.

Discounted services

Big chains of real estate companies offer discounts and rebates for home sales and purchases. Some give sellers a one percent discount from market commissions in their area and give buyers 20 percent rebate on commissions. You can even save another five percent if, for instance, you choose to use them to buy and sell your home.

There are chains that don’t offer cash rebates but other valuable perks like frequent-flyer miles or gift cards from big chains of department stores.

Helpful FSBO sites

Real estate websites that offer flat fees for their services are in stiff competition with the agents. Some of these sites have access to the Multiple Listing Service (MLS) that only charge a flat fee. Some charge on an hourly basis such as for services involving price advices and preparation of closing documents. If you’re selling on your own, these sites can truly help you in whatever part of the transaction that you might choose to pay for. They can best serve in the marketing aspect.

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