The average real estate commission is six percent of the total sale price, which, with the U.S. average home price of just over $250k, comes out to about $13,940. That is a lot of money indeed to pay out, regardless of how much you slice it up. In addition to being pretty darned expensive, commissions are also very hard on the seller as well. Many sellers do not realize that they can lower the amount of commission that they pay to the broker, in some cases by as much as 50 percent! Read more about flat fee real estate broker.
It's true that if you have a very large home and a high-end lot, your commission may be higher than what you would get for smaller properties. But even if you do not have such a large home or a high-end lot, there are still ways to reduce your commission. First, make sure to negotiate the terms of your lease or contract. Often, if a landlord offers a significantly lower rent than the market rate, you can easily get your payment down to something closer to what you would pay a mortgage broker. This can make the difference between getting an excellent commission and getting nothing at all.
Second, ask your real estate agent for a reduction in fees or commission if you are planning on buying a home within a short period of time, or selling one quickly. If the seller has a fixed commission rate that doesn't change based on the market, this is an easy way to negotiate a reduction, especially if it is a higher commission than what you are currently paying.
Third, get in touch with your credit card company and ask for a waiver. Even if your credit card charges are not too high, they still could end up costing you money if they go into arrears. Even worse, your credit will get in the way of the agent helping you close a deal. So if your current rate is low but your interest rates are high, switch them to a lower one.
Finally, if you plan on selling in a shorter period of time, you might want to consider getting a lower real estate agent's commission. Most commission schedules are based around the length of the contract that you sign, so if you decide to sell in a couple of months, your broker might take less commission from you. If you plan on selling in a few years, you can ask for a bigger commission.
There are many other ways to cut down your real estate commission, but those three are just a few of the tips that can help you save a significant amount. Once you figure out how much commission you are currently paying, talk to a local realtor about lowering that. Check best cities in atlanta.