The recent housing dip provides an excellent opportunity for buyers and sellers to extract lower commissions from their real estate brokers. The commonly accepted rate of 6% can now be negotiated to around 4.5%.
In theory, of course, broker commissions are always negotiable. Setting up fixed commission rates has, in fact, been considered illegal since a 1950s Supreme Court ruling. But real estate brokers certainly don’t want you to know that. “The owners of the large [broker] firms want everyone to think the broker fee is 6%,” says Jay Michael, Labinov’s realtor and the founder of Estate Property Group, a boutique real estate firm in Chicago that, while a full-service brokerage, negotiates its fees with its clients, typically charging 4.5% to 5.5%.
To further increase your leverage:
— CAREY GREENBERG-BERGER
More Real Estate Brokers Are Reducing Their 6% Fees [Smart Money via FreeMoneyFinance]