5 Tricks to Save Cash on Realtor Commissions

Aaron Crowe





















Published October 10, 2012 Updated: April 15, 2016
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Caroline S•  December 19, 2015 Edit
"Some agents, however, have been known to go out of their way to avoid showing those houses." This is illegal (called boycotting) but unfortunately it still happens and is basically impossible to enforce. You mentioned a few flat fee shops who face this problem and it is a serious one. I'd also suggest looking into Hauseit which is a NYC based company that pairs you with a top local full service broker who provides the occasional flat fee listing. This avoids the reputational risk you mentioned.
Duane Christensen•  August 6, 2016 Edit
For more than asking? Then it either wasn't priced right or there's a shortage of homes on the market. Then if the home doesn't appraise, you're back to the negotiations table. It's easy to say you don't need a Realtor until you try selling on your own. Even with the little help of a flat fee company, it's not easy.
B.P.•  August 30, 2016 Edit
This article is horrendous. Obviously, you've never worked in the real estate industry. Highly competitive, crazy hours, on call 24/7 because the business never sleeps, high liability, lots of driving, organizing inspections, photographers, aerial photos/videos, meetings with title companies, mounds of paperwork, and everyone is trying to take a piece of the pie that you MORE THAN EARN--your broker, your insurance, your clients, the MLS and realtor board dues--everyone. This is the most important and one of the most expensive, decisions/purchases someone can make. Having someone who is a professional, ethical, and your advocate to make sure everything is taken care of, done properly, and your interests are protected is INVALUABLE. All commissions are negotiable, but that doesn't mean you take advantage of your agent. You get what you pay for in this industry. Any realtor with experience is never going to agree to something like a 3% split. Using a realtor to pre-market and market your home on the MLS, social media, open houses, title company home tours, staging, etc. is a TON of work and costs us a pretty penny up front. We are far more invested in you and the success of selling your home for the most money in the least amount of time, than you are invested in us. Every listing we take is a risk. The best thing you should do is interview several agents in the area. Ask them what their average days on market are, how many listings they have vs how many buyers they've represented in the past year, what records have they set or broken in surrounding neighborhoods for price per square foot, (etc), how many of their listings received over asking price, what they would suggest you do to make your home market ready, ask them to walk you through their comps for your home and how they determined a value range for listing your home--all of these things are what separate a typical agent from a great agent. That, and the level of service they provide. A great agent will go above and beyond. How do you find these agents? Ask your neighbors, look on facebook, read reviews... In most cases you'll find that agents don't need to discount you because they sell your home at a price that you otherwise would not get if you used an inexperienced agent or no agent at all, and therefor, you actually make back far more than the 1-1.5% you're asking us to take out of our pocket. That's 33% of our paycheck. If someone asked you for 33% of your paycheck, how would you react? And while you may think that agents are rolling in the dough--they're not. The average agent has 11 transactions a year according to realtor.org. A nickel is twice as large as a dime, but worth half as much. Don't be cheap and don't be stupid--selling and purchasing your home is not the time to be either.
Butters•  October 19, 2016 Edit
SS•  January 16, 2018 Edit
Annoyed•  November 1, 2017 Edit
If realtors work so hard then why hasn't my realtor showed my house in 2 months? The only people I've gotten to see it were through social media.