# Negotiating real estate commission



## FarmerKat (Jul 3, 2014)

We have some land we want to sell. Unfortunately, it is 2+ hours away from where we live so it seems impractical to go FSBO. So I was wondering if anyone has experience in negotiating a real estate commission. Was the agent willing to negotiate at all? If they did accept a lower commission than proposed, did you still get a decent service or did it result in less advertising, etc.? 

If you are (or were) a REA ... do you ever negotiate your commission? How do you feel about sellers who would like to negotiate?

IMO, the "going rate" in our area is high (10%). I certainly understand that an agent deserves to make a profit but having lived in an area where the commission rate was 5%-7% (last house I sold with a REA was at 4% commission), I feel I should at least ask if they would take less.


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## elizaloo (Jul 5, 2010)

We just sold property in the northern part of our state, just over an acre on water. The local real estate office (there aren't many that far north) had a standard $2,500 fee. No dealing whatsoever on the amount. I think it was $2,500 or 10%, whichever was less. It took a year but they sold the property and we bit the bullet and paid the fee, just glad to be rid of it.


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## buffalocreek (Oct 19, 2007)

I've never heard of a 10% commission before. Mostly 5-6% where I've lived in western states. I've negotiated rates before and sometimes got lower rates. If one realtor won't budge, try another. Or maybe try selling it on ebay. I once bought a fixer upper house for $2000 and sold it on ebay for $6000.


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## Jennifer L. (May 10, 2002)

Around here the commission is 10% on bare land, 6% on a regular house type situation.


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## ChristieAcres (Apr 11, 2009)

Real Estate commissions are negotiable. Keeping in mind, typically the % is split between the Listing Firm and the Selling Firm, with contracted portions to each individual Agent. Selling Agents are much less likely to show properties offering lower commissions than other properties. If you get a discount, be sure and ask what % the Selling Agent will receive...


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## FarmerKat (Jul 3, 2014)

ChristieAcres said:


> Real Estate commissions are negotiable. Keeping in mind, typically the % is split between the Listing Firm and the Selling Firm, with contracted portions to each individual Agent. Selling Agents are much less likely to show properties offering lower commissions than other properties. If you get a discount, be sure and ask what % the Selling Agent will receive...


Thank you for your input. That is good to know. 

We actually went ahead and just put the property up for sale by owner for now. Since we live 2 hours away and do not have a need to go that direction, it takes a special trip for us to get there. When we made the trip to do some mowing, we made appointment with 2 agents - one did not show and I did not like the other one. He may be a great agent but I cannot stand people who do not answer questions you ask. For example, when I asked if his commission was negotiable, his answer was "I will tell you, I am 75 years old, in good health, I am not on any medications, play golf ... " and continued talking about the things he likes to do. What kind of answer is that? He also said a few things that were not true. I may not have as much experience in the real estate business as he does but I am not entirely ignorant either. 

We are not hurting to sell, we just do not have need for the property. When we go back next time, I will probably try someone else. If it were closer, we would prefer to sell by owner but I cannot run there to show it on a short notice.


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## mnn2501 (Apr 2, 2008)

10% is usually for commercial property.
Never heard of higher than 7% for a home.

Yes some will negotiate, some (mainly national chains) will not.


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## fishhead (Jul 19, 2006)

I was told a relative listed his property on Craigslist, had 5-6 interested parties, picked one and then turned it over to a realtor to do all the paperwork for $1,000- $1,500.

This was in MN.


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## homebody (Jan 24, 2005)

Hmm. I heard years ago that United Country charged 10% commission, don't know if that's on land, house or everything. Never thought about Craigslist. May try that first when we get ready to sell here in MO. Will have re co. agent lined up beforehand if we can't sell ourselves.


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## po boy (Jul 12, 2010)

Raw Land and Commercial property normal runs more than residential.


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## Evons hubby (Oct 3, 2005)

The last few real estate auctions I've attended charge a ten percent buyers premium, sellers aren't charged a dime.


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## edcopp (Oct 9, 2004)

All we know about the property is nothing at all...
So it is pretty difficult to answer most of the questions.

ALL real estate commissions are negotiable. To answer one question. The question then changes a bit. Are YOU a good negotiator? This is a very powerful part of the real estate selling business. If you negotiate nothing, then the industry has a plan for you. It will most likely be in a printed up form. Frequently the Realatator lady will arrive (up your gravel road) in a Mercades Benz, complete with spike heals, etc.

No problem here she usually is not a negotator, she does not know how. She is just there to get papers signed, that's all.

Often the best negotations are done without a contract form at all. When both parties agree then the proposal can be put on paper, signed by both parties, and copies delivered to both parties. That is when it becomes a contract. Until then it is incomplete, it is an offer.

So negotiate anything you like. It helps if you are negotating with someone who can make a transaction happen There is more to selling real estate than putting information on some kind of List.


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## Bellyman (Jul 6, 2013)

Do you have to actually list the property?

Could you let the agents in the area know that if they bring a buyer that completes the deal, that they will receive a commission? Set that commission to whatever YOU think is reasonable and let them either show the property or not. 

I don't know if that's something that is done in today's world. About 30 years ago, I did know of a few places very much like that. Nobody got to put up a sign but agents in the area knew these places were for sale and that they'd get a commission if they sold it. That's a long time ago and things could have changed.

Then again, there's always ebay.

Good luck!


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## edcopp (Oct 9, 2004)

The main reason that a property gets listed is to gurantee that the listing broker will get paid. Once the listing is signed and each party has a copy it is a contract.

The time to negotiate is before you sign the listing form. Once you sign the listing form and the agent or broker signs it, it then becomes a contract between you (the seller) and the broker. If the broker does what the contract, he is entitled to be paid. 

If you change your mind, and all the requirements of the listing contract have been met, the broker is entitled to be paid (as you agreed on the listing contract).


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## Nimrod (Jun 8, 2010)

I bought the land I am living on from a cousin. No realtor or closing firm. Just had a lawyer draw up the forms, we filled them out and filed with the county and state and I paid a couple of fees. 

When I sold my apartment building I did use a real estate agent. Both agents did lower their commission to get the buyer and me close enough to make the deal.

When I bought my new piece of land the seller had an agent. I found the property and contacted a friend who was a real estate agent. He made the offer and collected the buyers commission. Otherwise the seller's agent would have collected the entire commission so why not have my friend get some?


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## pmondo (Oct 6, 2007)

buffalocreek said:


> I've never heard of a 10% commission before. Mostly 5-6% where I've lived in western states. I've negotiated rates before and sometimes got lower rates. If one realtor won't budge, try another. Or maybe try selling it on ebay. I once bought a fixer upper house for $2000 and sold it on ebay for $6000.


in just about all 50 states land no building on it is 8-10 % houses are 5-6%


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## farmerted (Dec 21, 2012)

3.5 for the seller 3.5 for the buyer here in Missouri.


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## edcopp (Oct 9, 2004)

pmondo said:


> in just about all 50 states land no building on it is 8-10 % houses are 5-6%


Says who?


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## Evons hubby (Oct 3, 2005)

pmondo said:


> in just about all 50 states land no building on it is 8-10 % houses are 5-6%


My brothers and I recently sold a 80acre farm in Oregon, the old log cabin was of little to no value. 6%.


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