How to Negotiate Realtor Commissions

How to Negotiate Realtor Commissions

While real estate agents are very helpful during the process of selling a home, they can come at a price. However, just like in negotiating the price of your house when selling, you are also able to negotiate your realtors' commission.

How to Negotiate a Real Estate Agent Commission

How much you can negotiate your price down is dependent on a lot of factors. This includes what real estate agent you are working with, your property, the location of the property, and current market demand. While it may be worth it to negotiate a lower price, do be cautious that it can be tough, but there is potential for thousands of dollars in savings. Here are some tips to help you negotiate with your agent.

How Much Can I Save by Negotiating Realtor Fees?

This varies on the factors we listed above, and there is no standard fee that real estate agents charge – the commission is always negotiable. In many cases, real estate agent commissions come in between 5-6% percent, meaning a $200,000 sale could leave you stuck with 10-12 thousand to pay your agent as the seller.

When selling a house in Las Vegas (or elsewhere), negotiating even just 1% saves you an extra $2,000, and the higher the price of the sale, the more money you can save. If we go to the extreme, negotiating an agent's commission that is 1% lower can hypothetically save you $10,000 on the sale.

Let’s get into how to evaluate your property and ways to negotiate a real estate agent commission you are satisfied with.

How Much Can You Negotiate?

Figuring out your ability to negotiate is essential in finding an agreement that will work for both parties. Like we said before, different factors like property price, market demand, and location can change the amount of leverage you have in negotiating.

Also, be aware of the agents involved. In a typical commission structure, half the commission will go to the seller's agent and half will go to the buyer's agent. However, in some cases, one agent may receive more or less depending on experience or time working. These situations can vary and affect how much you can negotiate.

Tips for Negotiating Realtor Commission


Make sure to look at a lot of different real estate agents and brokerages to find a deal that you are happy with right off the bat. Different agents give different deals, and based on these deals, what they offer might differ as well.

Some agents may not budge in negotiations while others may be completely open to it. Some brokerages even offer to work with you on a discount price by tailoring the service specifically to do. However it may work out, it is a good idea to research and talk with multiple agents before you make a final selection.

Help Your Agent Out

Sometimes it can be worthwhile to offer some assistance to your real estate agent in the form of fixing some problems with the house or sprucing the place up a bit in return for a lower commission.

If the house is in need of some new paint, covering the cost of painting the house may make it easier to negotiate with the Realtor, as that would help the agent out in selling the house. Just make sure that the savings you will make on the commission are more than whatever you spend to fix up or improve upon the house.

New Agents Can Help Save

Oftentimes, a newer agent, either to the profession or the area, can be easier to negotiate with. For example, being a newcomer to selling Summerlin real estate, agents may often be looking to boost their sales and gain a reputation within the market more so than they are concerned about making the highest commission off of every transaction.

This means that they may be more lenient and responsive to your commission negotiation request. Be aware that sometimes they have limits based on the brokerage they work for, but it’s never a bad idea to look into it or ask.

Offer Multiple Transactions

If you are looking into selling and buying, using the same agent for both may help negotiate the price down. Real estate agents are always looking for people to represent, and repeat business is sometimes hard to come by.

In this case, offering them the opportunity to represent you as both a seller and a buyer can help you save a lot. Some real estate agents will take a discounted price purely to obtain both transactions.

Don’t Be Afraid to Walk Away

In the end, you are the one paying the commission as the seller. If you aren’t comfortable enough with a deal or feel like you have a better chance somewhere else, don’t be afraid to walk away.

That being said, make sure you have a good grasp of your options. Getting too greedy can hurt you in the long run. Don’t make it a habit to bluff. It is best to set your limits up in advance, but be aware that you may have to budge a little too.

Consider Other Options

Believe it or not, you don’t NEED a real estate agent to sell your house. Listing your home “for sale by owner” can net you big savings as you handle all the work yourself. Instead of paying an agent, you get to keep 100% of the money.

While this seems attractive at first, only go this route if you are comfortable and confident that you can handle the workload yourself. Listing, marketing, and selling a house is a complex job. It can be very easy to become overwhelmed by all the different moving parts you have to work with. Despite this, if you can handle all of that, it is a great way to earn back that 5-6%.


Hopefully you have a better grasp of how the negotiation of a Realtor's commission and how it works. It can be tricky to work through at first, but once the process gets going you may find it easier over time.

Remember to not be afraid to talk about the topic with your real estate agent. Realtors are usually very comfortable discussing their compensations as it is part of their job most of the time.

In the end, doing your research and being comfortable with what you are willing to pay are the two most important things to negotiating effectively.

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