Are real estate agent commissions negotiable?
Real Estate Agent Commissions By Appreciate Realty CO
Real estate agent commissions can be a big expense when buying or selling a home, but the good news is they’re negotiable! Whether you're a buyer or a seller, knowing how to negotiate a realtor’s commission can help you save thousands of dollars. With new commission rules implemented, now is the perfect time to understand your options.
Are Realtor Commissions Negotiable?
Yes! By law, realtor commissions are always negotiable. If you're selling a home, you don’t have to accept the first commission rate an agent offers.
How to Negotiate Realtor Fees
Shop around – Interview multiple agents before choosing one.
Ask about services – Some agents include staging, marketing, and photography.
Consider a flat-fee agent – Some realtors charge a set rate instead of a percentage.
Do some tasks yourself – Handling your own staging or photography can reduce commission costs.
Request a breakdown – Ask the agent to explain exactly what their commission covers.
By negotiating, you can make sure you’re getting the best value for the services provided.
Do Real Estate Agents Earn a Salary in Addition to a Commission?
No, most real estate agents do not earn a salary—they work only on commission. This means they don’t get paid until a home sale closes.
What Realtor Commissions Cover
Marketing & advertising – Listing on multiple websites, online ads, and open houses.
Legal paperwork & negotiations – Managing contracts and ensuring a smooth closing process.
Business expenses – Insurance, licensing, and professional fees.
Because agents invest time and money upfront, they only earn a paycheck if the home sells.
Are Realtor Fees Tax Deductible?
For homeowners, real estate commissions are not tax-deductible. However, if you’re selling an investment property, you may be able to deduct commissions as a business expense. Always consult a tax professional to see if you qualify.
Advice on Your Mortgage You Should Actually Listen To
Not all real estate advice from social media influencers is bad! Here are a few smart tips that actually make sense:
Get pre-approved before house hunting – This helps you understand your budget and makes your offer stronger.
Consider an adjustable-rate mortgage (ARM) if you plan to move soon – This can save you money on interest.
Make extra mortgage payments when possible – Even small additional payments can reduce interest and shorten your loan term.
5 Reasons Pending Sales Fall Through in Real Estate
Even after accepting an offer, a sale can fall apart for several reasons:
Financing issues – The buyer’s loan may not get approved.
Low home appraisal – If the appraisal is lower than the sale price, the buyer may back out.
Inspection problems – Major repairs or safety concerns can cause buyers to rethink.
Title disputes – Issues like unpaid liens or ownership conflicts can delay or cancel a sale.
Buyer’s remorse – Some buyers get cold feet and decide not to proceed.
To avoid these problems, work with an experienced agent who can help navigate potential roadblocks.
6 Reasons You Should Never Buy or Sell a Home Without an Agent
While some people try to go For Sale By Owner (FSBO) to save money, hiring a realtor often results in higher profits and fewer headaches. Here’s why:
Pricing expertise – Agents help you set the right price based on market data.
Negotiation skills – They can negotiate better deals for you.
Marketing reach – Listings get maximum exposure with professional marketing.
Legal protection – Agents ensure all contracts and paperwork are correct.
Time savings – Selling a home requires a lot of work; an agent takes the stress off you.
Network of professionals – Agents have connections with lenders, inspectors, and attorneys to smooth the process.
Final Thoughts
Understanding realtor commissions can help you save money and make smarter real estate decisions. Whether you’re buying or selling, negotiating fees, shopping around for agents, and knowing what commissions cover can lead to better deals.
Thinking about selling your home? Contact Appreciate Realty CO to discuss your options and find out how to get the best deal!