Real estate agents are typically paid a commission that is a percentage of the sale price of a home.
Many home buyers and sellers assume that the commission that is offered is a legally required amount and cannot be negotiated with the real estate agent.
However, a certain set percentage commission is not required by law and you can offer your real estate agent a lower commission percentage or a flat fee for representing you in a successful transaction.
Real estate agents who work for larger brokerage firms may not have the flexibility to change the amount of commission they charge but smaller real estate firms, such as BLG Properties, are sometimes open to a lower commission percentage or a fixed fee depending on the complexity of the transaction, the time of the year and the amount of work that needs to be completed.
For example, the standard 2.5% commission might be fair if it is a busy time of the year for real estate transactions or if the house will need a significant amount of work to find a suitable buyer, but it might be too high if you are buying a new condo in San Francisco's financial district and the agent will likely only do a few hours of work.
If your real estate agent offers you a standard commission rate, consider asking for a lower percentage or a fixed fee. Depending on the details of the transaction and who the real estate agent works for you might save yourself thousand of dollars on the transaction.
Need a great real estate agent to help you find the perfect home in San Francisco? Give us a call at (415) 295-6370.