February 24, 2024

Leadership craft

Unlocking Homes, Building Futures: Your Real Estate Partner

Can Buyers Negotiate Real Estate Commission?

3 min read
Negotiating Real Estate Commission Seller's Guide Mashvisor

Understanding Real Estate Commission

When buying or selling a property, one of the expenses to consider is the real estate commission. This is the fee paid to the real estate agent or broker who assists in the transaction. Typically, the commission is a percentage of the final sale price, and it is split between the buyer’s agent and the seller’s agent.

Is Real Estate Commission Negotiable?

While real estate commission is generally the responsibility of the seller, buyers often wonder if they can negotiate this fee. The short answer is that it is possible, but it depends on various factors and circumstances.

Firstly, it’s important to note that real estate commission rates are not set by law. They are determined by the market and can vary based on location, property type, and other factors. In some cases, agents may be willing to negotiate their commission if it means securing a sale.

Factors That Influence Negotiability

Several factors can influence the negotiability of real estate commission. One of the most significant factors is the current state of the housing market. In a seller’s market where demand outweighs supply, agents may be less willing to negotiate their commission as they have more potential buyers and less competition.

On the other hand, in a buyer’s market where there are more properties available than buyers, agents may be more open to negotiation to secure a sale. Additionally, the price range of the property can also play a role. Higher-priced properties may have more room for negotiation compared to lower-priced ones.

How to Negotiate Real Estate Commission

If you are a buyer interested in negotiating the real estate commission, there are a few strategies you can consider. First, it’s important to educate yourself about the current market conditions and average commission rates in your area. This will give you a better understanding of what is considered reasonable.

Next, you can discuss your negotiation request with your real estate agent. They will be able to provide insights into whether negotiation is feasible in your specific situation. It’s essential to approach the negotiation process respectfully and professionally to maintain a positive relationship with the agent.

Another strategy is to consider offering incentives to the seller. For example, you could offer to cover some of the closing costs or agree to a quick closing timeline. These incentives may make the seller more willing to negotiate the commission.

Benefits of Negotiating

When successfully negotiating the real estate commission, buyers can potentially save money on their overall home purchase. This can be especially beneficial for first-time homebuyers who may have limited funds available. Negotiating the commission can free up some cash that can be used for other expenses, such as renovations or furnishings.

Additionally, negotiating the commission can also help establish a positive relationship with your real estate agent. By showing that you are knowledgeable and proactive, you can build trust and enhance communication throughout the home buying process.


While it is possible for buyers to negotiate the real estate commission, it is not guaranteed in every situation. Factors such as market conditions, property price range, and individual agent policies can all influence the negotiability of the commission. By educating yourself, working with a knowledgeable agent, and approaching the negotiation process professionally, you can increase your chances of successfully negotiating the commission and potentially saving money on your home purchase.