Q. What is broker’s commission? Is it negotiable?
A. Brokerage commissions are completely negotiable. It is illegal for local or national brokerage firms to “fix” commission rates.
That means that your negotiating skills and local competition — and not the managing broker of the firm you use — will determine how much commission you pay.
What is the typical commission? Generally, commissions range from 5 to 7 percent of the sales price. But some brokerage commissions are higher and some are lower. Some discount brokers will attempt to sell your home for as little as 1.5 to 2 percent of the sales price. Others have taken listings for as much as or 20 percent.
For example, these are brokers who will cut commissions down to nearly nothing if the seller agrees to do almost all of the work or agrees to pay for the advertising costs associated with marketing the home. In fact, some brokers have cordoned off the discount commission business and made it a successful niche. Discount brokers usually offer sellers (and buyers) a sliding scale of fees for a sliding scale of services.
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