Are Real Estate Commissions Negotiable?

First and foremost, there can be no set listing commission in a certain area of the country otherwise it could be considered price fixing.

Each brokerage firm sets it’s own listing commissions based on the services they offer, their business plan and what the market will bear. Therefore, listing commission are different at different real estate firms.

Most firms will negotiate a little on the total commission, but many larger firms have a set rate for exclusive listings and they will not allow their real estate agents to reduce their listing commission even if they want to.

Other real estate firms or discount brokerages will charge a set fee for certain services. They may even list your home under a limited service agreement that may specify you must handle the showings yourself.

Smaller boutique real estate firms tend to be more negotiable when it comes to the total listing commission. They have less overhead and less restrictions from upper management.

Make sure you understand all the terms of your listing agreement before you sign it. All commissions should be spelled out for the listing broker and any real estate agent who brings a buyer into the equation. If you are unclear about anything in your listing agreement, ask for clarification or consult a real estate attorney.