When it comes to selling or buying a home, a real estate agent is one of the most crucial persons in the process. Having a good real estate agent is necessary to ensure that you get the best possible deal and reduce the stress and complexity that comes with the process.
However, this comes at a price and what most sellers and buyers alike do not know is that you can negotiate the commission amount when hiring a real estate agent. Although there are local customs to refer to, their commission rates are typically not set in stone.
In fact, many agents enter the process with the expectation of being negotiated with. While this doesn’t mean that they will always agree to a fee reduction, it’s still a good idea to try negotiating when hiring real estate agents in Perth.
With that said, how do you negotiate with them?
1. Investigate and study the real estate market in your area.
First, you need to determine what kind of neighborhood your property is in. If it’s in a good neighborhood where a lot of people are looking to buy a property, you can use this information to negotiate your agent’s commission.
For example, a seller’s market means that the demand of buyers looking for property exceeds the number of homes being put up for sale.
Because of this, you can negotiate to list your property for 3 months with a commission reduction by 1% less than the norm as selling your property wouldn’t be too difficult in a fast-moving market such as that.
On the other hand, if the market in your neighborhood is a buyer’s market, meaning there are more properties for sale than buyers looking for one, then you can negotiate with your agent to reduce their commission by 1% if they handle both sides of the transaction.
You can also incentivize them to stimulate interest in your property by offering a commission that’s at the norm or slightly above it. You can even suggest a bonus to the agent that manages to attract a buyer within a specific period.
2. Sell your property during off-seasons.
A great way to get discounts on your real estate transaction fees is by selling your property during off-seasons like winter or fall. This is because real estate agents will be more willing to negotiate during this time as they are likely looking for more business.
However, this has the potential downside of failing to find suitable buyers for your property as this is the time when fewer people are looking for a property to buy.
3.Transact with your listing agent when buying a home.
If you’re looking to buy a house while you sell yours, why not consider using the same listing agent to help you find your new home? This can be a way for you to get reduced fees but you need to be sure that you’ll buy with the same agent as you can be held accountable for breaching the contract in case you decide otherwise later on.
4. Use the same listing agent for multiple listings.
If you’re an investor who buys and sells properties, then consider forging a long-term relationship with your listing agent by hiring them to sell your other listings. This can help you gain discounts in fees if they’re handling multiple properties for you.
Real estate agents commissions are flexible enough and many would consider a negotiation. However, take note that the more successful your agent is in the business, the less likely they are to negotiate their fees.
Nevertheless, with the stress that selling your property and moving can bring, it’s always a good idea to negotiate with your real estate agent.