Ways to Trim Commissions
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Here is what financial planners and consultants suggest homeowners can do to reduce the commission they pay to real estate agents.
Shop around. Settle on a group of agents with good track records and start asking them to quote their commissions.
Negotiate. Once you’ve picked an agent, try to negotiate a lower commission than the first one you were quoted. “People are making a mistake if they accept a commission schedule without taking the brokerage on,” said Stan Ross, a real estate consultant with Kenneth Leventhal & Co., a Los Angeles accounting firm. “The first word of advice is negotiation is appropriate.”
No frills. The commission can be reduced further if you agree to do some of the work ordinarily done by the agent. For example, you may want to show the house yourself or share expenses such as advertising if you think your home will be a quick sell.
Paying an incentive. You can negotiate a commission that will be reduced the longer your home is on the market. The agent will make more money if your house sells quickly.
Package deal. If you like the agent, you can ask for a reduced commission if you promise in writing to use him or her in the future.
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