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%.

• Use the same broker to sell your current house and buy a new one. Negotiate an overall discount on both houses.
  
• Use a smaller firm. Lower rates can be approved faster with fewer layers of bureaucracy.
  
• Use a different broker. If one broker won't negotiate, leave him/her and find one who will.
  
• For the especially adventurous, consider using the internet to replace your broker altogether.
  — CAREY GREENBERG-BERGER

  More Real Estate Brokers Are Reducing Their 6% Fees [Smart Money via FreeMoneyFinance]
  (Photo: brighterworlds)