Tips to Negotiate Seal Beach Real Estate Agents Commissions
April 19, 2010
Regardless of local customs or what Seal Beach real estate agents tell you, you have to know that their commissions are negotiable. In fact, there are brokers or agents who will even agree to a full percent reduction of their commissions right off the bat. These agents are open to discussing about having their fees reduced. Do not hesitate to ask because rarely would you meet an agent who will take offense. In fact, they expect it and they likely have a speech prepared to dissuade you.
Understand the Local Custom of Transaction
Before you can effectively negotiate your real estate agent’s commission, you need to understand how they are paid. This will depend on various things including company policy. Usually, a good agent expects to be paid more. He will also charge a higher commission fee. An agent who barely closes one deal every month or so will likely charge lower commission fees.
Remember, however, that only licensed brokers can actually charge commission on sale. Usually a broker will have agents working for them. They will pay these agents as independent contractors.
When You Get the Same Agent to Do the Selling and Buying
When you hire the same Seal Beach real estate agent to sell and buy properties for you, you can in good conscience ask for reduction of commission fees without feeling guilty. It is actually permissible to do so. If someone works as your listing agent and he or she earns a commission from the listing side, she will also earn a commission from the selling side of a “buy a home” transaction. He or she gets to work on two deals and earn on both deals. Therefore, it is perfectly acceptable to ask for a reduction in commission.
When You and the Buyer Gets the Same Agent
When the seller and buyer of the same property hire the same agent, a dual agency is created. This is not legal in some states because it creates a double-ending transaction. The agent, however, acquires increased liabilities. When this happens, it is a common practice to inquire from the Seal Beach real estate agent to lower his or her commission fees. Be careful about doing so because it might backfire in you. The agent may end up working for the interest of the other party more than your own interest especially if the other party is willing to work with the agent’s asking commission rate.
Indeed, there are scenarios wherein it is acceptable and even accepted to ask for the reduction of Seal Beach real estate agents commission fees.
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