What is your commission?

Remember, your real estate agent isn’t working for free. While they may not be charging you an hourly rate, expect to give them a percentage of what you get for your home as commission for their work. Panicking? Don’t. The good news is, real estate commissions aren’t drastically high—on average, real estate agents take about 6% of what you get for your home. The even better news: commission is negotiable.

One of the questions you should ask when interviewing prospective realtors is the amount of commission they take. Typically, real estate agents ask for 6% of the total sale price of a property. Some agents may ask as low as 4%; others may ask up to 7% or 8%. If an agent asks for more than 6%, be sure to ask them to justify this number. If a property will be especially difficult to sell and will require a lot of the agent’s time, it’s reasonable for the agent to ask for a slightly larger commission. However, make sure to “shop around” and get quotes from other agents, as well. If everyone else is willing to sell your property for a 6% commission, but one is asking for 8% commission, then that one may be more interested in your wallet than in your well-being. If, however, all the agents you speak to agree that the home will be a difficult sell, then perhaps a higher commission is reasonable.

You can, if you wish, try to negotiate a lower commission. But you have to be reasonable, too. If you feel your property will be an easy sell (and this is supported by some kind of evidence—other real estate agent opinions, for example) you could try to negotiate the commission. However, don’t just try to lower your commission for the sake of saving money. All real estate agents will charge commission; this is simply a normal part of the home selling process.

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