How I’m Talking To My Clients About Realtor Fee Negotiations | Global News Avenue

Buying or selling a home is not an easy task. In fact, 59% of U.S. homebuyers find buying a home more stressful than dating, according to a Redfin survey. Despite this pressure and high prices, real estate remains a valuable investment. Working with a real estate agent can help alleviate some of the anxiety by guiding you through the process, but it’s also important to make sure you’re paying a fair fee for their services.

What I tell my clients

The desire to buy a home quickly is risky, as a lack of due diligence can lead to significant financial losses. First and foremost, I want my clients to have a clear goal beyond “buy” or “sell”. Before any agreement is reached, they understand Closing costs, unexpected eventsand agency fee.

real estate agent commissiontypically around 5%, is a negotiable number that clients should discuss ahead of time, and strategic listing prices should be part of that conversation. For example, a 5% commission on the sale of a $250,000 home would be $12,500.

However, I remind clients that a real estate agent’s commission covers valuable services. In addition to listing properties on multiple listing services (MLS)agency market, stage, performance properties.

Other considerations

Before entering into negotiations with a real estate agent, people should consider the following points:

• The federal lawsuit and subsequent rulings have impacted how sellers and buyer’s agents approach commission structures. Primarily, it eliminates the requirement for home sellers to pay their own agents and buyer’s agents. Therefore, if a home buyer needs an agent, they may need to pay for it themselves.
• As mortgage rates rise and home sales fall, home prices are expected to continue falling, which could make the market more competitive. Hiring a real estate agent may help you in this situation.
• Home construction has increased as mortgage rates have fallen, which could affect the competitiveness of negotiations over time.

bottom line

Despite price fluctuations, real estate has historically been considered one of the more reliable long-term investments. By understanding how real estate agent negotiations work and approaching the process carefully, buying or selling a home with support can be a smart financial decision no matter the time of year.