Many real estate agents charge a percentage of the commission. But what is the average sell side commission for real estate agents? This question is important to know before hiring an agent. The commission can range anywhere from zero to three percent of the selling price. In the past, many sellers paid full commission to their agent but now they may not want to pay tens of thousands of dollars for their services. Fortunately, there are some tips to help you negotiate a commission that is fair for both parties.
First, find out how much your agent charges. The average sell side commission is 6% of the home’s selling price. This is a fair amount, especially since the commission amount increases with the selling price of the home. In many cases, agents are more than willing to negotiate the commission if the seller will agree to pay a lower price. For example, a six percent commission for a $500,000 home would be $30000. However, if the home is worth $600,000, the fee is $36,000.
Another tip for negotiating a sell side commission is to ask the real estate agent to disclose their total revenue for the year. The average real estate agent can expect to earn eight-seven thousand dollars for a year if he or she does two or three deals in a single year. For an agent, it is possible to negotiate the percentage of commission to give them more flexibility in negotiations.