How to Negotiate Real Estate Commissions When You Sell or Buy

Commissions are negotiable. Say it with me: commissions are negotiable. There is no “going rate.” If you are selling or buying, you can and should negotiate the fee and the services attached to it. Here’s a simple, practical way to do that.

Start by interviewing three agents

Whether you are a seller or a buyer, talk to at least three agents. You will learn local norms, see who actually provides value, and have leverage to negotiate both price and scope.

For sellers: send this pre-meeting email

Tell each listing agent you’ll review fees only in the context of services. Then ask them to come prepared to address the items below and to quote their commission for this service package.

Ask for:

• Pro photography, drone, video, and floor plans, with recent examples

• Professional staging or a staging consultation

• A pre-listing home inspection

• An appraisal before pricing

• Private, agent-accompanied showings only (no unattended lockbox)

• Open house plan: who staffs it and how follow-up is handled

• Communication plan: weekly check-ins and a running feedback log

If they do not provide some of these, ask what fee reduction reflects the lighter package. Tie fee to service.

Structure the commission to the result

You have options:

• Tiered fee: for example, 3% if the sale price hits X, 2% if it lands at Y, 1% at Z.

• Flat fee: a fixed amount when you are covering certain costs yourself.

• Cost-offset: you front staging or inspection, then the agent reimburses those costs from their commission at closing.

About lockboxes

If you want maximum control and care, require agent-present showings. If an agent refuses or says it is “impossible,” you can either hold firm or reduce the fee accordingly.

Newer agents

If you choose a newer agent, that is fine. Pair them with a mentor or a team, and calibrate the fee to the experience and service level.

For buyers: protect your wallet and your flexibility

You will be asked to sign a buyer-broker agreement. Keep it:

• Property-specific or short term rather than a long exclusive.

• Clear on compensation: percentage or flat fee, and how seller participation will be requested in each offer.

• Negotiable per deal: different sellers will handle buyer-agent pay differently, so do not lock yourself into a one-size agreement.

If a seller offers less than your agreement specifies, you can 1) ask your agent to adjust, 2) request seller participation in your offer, or 3) move on. Case by case.

Simple scripts you can copy

Seller email opener

Buyer agreement note