When it comes to selling a home in Wyckoff, everyone’s primary objective is, of course, to maximize the final proceeds. It’s not surprising that some sellers assume that a savvy business move would be to ask their real estate agent for a reduced commission. After all, cutting the normal 6% a couple of percentage points still leaves a substantial amount, right?
The reality: since most people haven’t delved into the challenges that always face real estate agents, they are likely to assume that their agent pockets the entire commission. They have no reason to have delved into how much, at the end of the day, an agent actually nets from selling a home. The fact is, the reasons why that 6% is so universally respected as a fair number (and why it makes sense for everyone involved) is a matter of logic.
First, that primary goal of reaching the highest possible price for selling a home will require teaming up with a strong negotiator. If Agent Q from XYZ Realty agrees to cut his commission as soon as you ask, that is a pretty strong indicator of how well he skillfully he will negotiate for you.
Behind the numbers, that 6% for selling a home actually earns 3% for his brokerage – the other 3% goes to the buyer’s agent. Further, of that remaining 3%, the agent usually owes about a third of that to their broker. Subtract necessary transaction fees; and then take out all the other business fees and taxes the agent must pay, and then, like everyone else: income taxes.
In the end, it becomes a question of whether a homeowner is eager to entrust the sale of what is potentially his or her largest asset to a cut-rate vendor. Since selling your home will be marketed at your agent’s expense, the potential cost to you of a cut-rate arrangement is very likely to be…costly (to say the least!)