How much is a standard broker commission and is it negotiable?

How much is a standard broker commission and is it negotiable?

By law, real estate commissions are negotiable. However, the pricing of real estate service varies by level of service and consumer needs. For full service, most brokerages charge between 6 and 7 percent of the purchase price of the home. This total is paid to and split between the listing office and the selling office and is paid for by the seller. Keep in mind that a brokerages willingness to charge less is usually a reflection of the services delivered. A full service Broker utilizes a wide array of tools prior listing a property or writing an offer and allocates more marketing resources throughout the process. This generates greater interest in the property and the ability to negotiate better results and a bottom-line, higher net profit in spite of whatever commission is being paid. Although some brokers are willing to discount their fees, not unlike hiring any other type of service professional, in the long run “we get what we pay for.” Many service providers are forced to discount their services because they are unable to provide results above and beyond the cost of providing those results. A competent, professional broker rarely discounts and will put many thousands of dollars in your pocket above any perceived savings otherwise.