Making Your Real Estate Dreams Come True

Posts tagged ‘commission’

Why You Want to Pay Commission

When you’re trying to sell your home, it’s important to interview many Realtors so that you can find the right one. You might be faced with three or four agents, all who want to sell your home and all who have different marketing plans and personalities. 

Anti-trust laws prevent Realtors from fixing commissions – therefore, in NJ, all real estate commissions are negotiable. Choose your Realtor with the same care that you would choose any professional that you hire. When you choose a Realtor, make sure that a lower commission isn’t the only thing they have to sell. 

5 Reasons Why Real Estate Agents Reduce Commission

1. They need the business. Agents who don’t have a lot of clients may offer to work for less commission because they haven’t built up a clientele yet. Which could mean they aren’t experienced.

2. They don’t have a marketing system that works. If they had a marketing system that worked, they wouldn’t be working for less, would they? There is a difference between listing a property and selling a property – do they know the difference?

3. They’re willing to cut services. If an agent isn’t going to make a lot of money on the sale of your property, then they’re not going to spend a lot of money marketing it. It’s an old cliche, but it really does take money to make money.

4. They’re not offering the cooperating brokers a competitive commission. When an agent sells a property that they hadn’t listed, they earn one half of the commission, usually. In most sales, this means that 3% of the sale price goes to the buying broker who splits with the agent according to their contract. Sometimes, agents will list a home and offer less than half of the commission to the buying agent – perhaps only 2% or less. If you were a buyers agent, would you be excited to show a house that’s offering 33% less of a paycheck for you?

5. They’re not good negotiators. Good negotiators not only get the most money they can for you, but they also get the most money they can for themselves. If they weren’t able to negotiate commission successfully with you, how will they negotiate with a buyer?


Before you choose that agent who offered you a reduced rate listing, be sure that you know what you’re getting in to.


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