When a home is sold in Florida, the agents who represent the parties involved in the transaction typically receive a commission. The commission is traditionally paid by the seller in a lump sum that is split between those who are entitled to receive it. In some cases, agents may be willing to compromise as it relates to the size of this payment.
How much is a typical commission?
Real estate agents typically charge commissions that total about 7% of a home’s sale price. Therefore, if your home sold for $100,000, you would pay $7,000 in commissions to be split between the buyer’s agent and your agent. The exact amount that you’ll pay will depend on a number of factors including the pace of the real estate market in your area and how busy your agent is. During slower periods, an agent may take less simply to get a listing. Agents who don’t sell many homes may also be more flexible in negotiating their rates.
How to negotiate with real estate agents
It may be easier to negotiate real estate contracts by getting quotes from multiple agents. If the agent that you want charges more than the lowest price you are quoted, ask your preferred agent to meet that price. In many cases, your preferred agent will propose a compromise that meets everyone’s needs. It may also be possible to get a discount if you use the same person to sell your current home and buy your next home.
If you’re selling your home, it’s generally in your best interest to keep closing costs to a minimum. One of the easiest ways to do this is to ask your agent to reduce his or her commission.