Negotiate Real Estate Commissions

Few home sellers - or even buyers, for that matter - are aware that the Realtor commission for selling (or buying) their home is negotiable. You should consider the broker's "offer" for the commission to be a starting point for negotiation. Why?

The biggest reason is due to such high property values. When the average home is $280,000, a 6% commission is a whopping $16,800. While Realtors will want that much, seldom would they object to getting paid a "mere" $11,200 (4%). And some "discount" places like ZipRealty and Assist-2-Sell only charge 1-2%. So, if you are selling your home, don't be afraid to negotiate that commission - it can put thousands of extra $$$ in your pocket.

Since more and more homes are reaching or exceeding the $500,000 mark, even a 1/2% reduction in commission can result in savings of at least $2500.

And while you are in a mood for negotiating, buyers should try to negotiate "freebies" into the purchase, such as the gardening tools, snowblower, a chandelier etc. And sellers may even want to negotiate the retention of certain rights, such as "air rights". Why? As communities grow, so do the buildings in many instances. In the future, your children or grandchildren could sell those air rights for a lot of money, as businesses and developers need to build upward. After all, that is one of the wealth producing methods of the late, great John D Rockefeller. He owned substantial air rights in New York. As the skyscapers rose, so did his wealth!