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How do I negotiate a realtor's payment?

How do I negotiate a realtor's payment? I don't want to be disrespectful and I understand that this is their job; however, it's normal to negotiate a business transaction. So, is this similar? What are recommendations for how to negotiate? Are there any key points to talk about or inquire about?
Asked By Collin | Boston, MA | 465 views | Buying | 1 year ago
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Semi-Pro
52 Answers
Jason Craig

Coldwell Banker

Great question, Collin. Here’s what I usually tell my clients: in the Boston area, the seller typically pays the commission, which then gets split between the buyer’s agent and seller’s agent. So if you’re buying, you generally don’t pay me directly. On the selling side, commissions can sometimes be negotiated, but it’s worth keeping in mind that in a competitive market like Boston—especially with condos and multi-families—strong marketing and negotiation can make a big difference in your net. My approach is always to make sure the value of my work more than covers the cost, and I encourage people to have an open conversation with their agent about what services are included.
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Novice
6 Answers
Person+ Person

William Raveis Real Estate

(15)

Negotiating a realtor’s payment is definitely like any business deal—it’s expected, but handle it with respect.

Here’s a quick guide:

Do your homework: Find out the local average commission (usually 2.5%-3%) so you don’t sound clueless.

Build rapport: Compliment their skills or recent sales before bringing up fees. People like to be liked.

Bring it up early: Don’t wait until after the "For Sale" sign goes up.

Use smart language: Say things like, “How can we make this fair for both of us?” instead of “Lower your fee!”

Offer incentives: Suggest tiered commissions (e.g., lower if sold at market, higher if above) or ask for extras like staging or extra marketing.

Get it in writing: Don’t leave money talks vague—put agreements in your contract.

Bottom line: Negotiate politely, knowing you both want a win, and think of it as teaming up rather than arm-wrestling over dollars.

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Novice
1 Answer
Melissa Mayer

Compass

(183)

Negotiating a realtor’s commission is understandable, and the key is to approach it with respect and a focus on value. Instead of simply asking for a lower rate, have an open conversation about the services provided and how their strategy will maximize your sale price. Ask about their marketing approach, negotiation skills, and track record, as a top agent often justifies their commission by delivering a higher net profit. Consider alternative structures like a tiered commission, reduced fees for dual transactions, or creative incentives that align with your goals. Keep in mind that an agent who easily cuts their own commission may not be the strongest negotiator for your home sale. Instead of just focusing on cost, focus on value—because the right agent can make a far bigger impact on your bottom line than a small percentage change in commission.
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Novice
1 Answer
Ari Tanasio

Tanasio Realty Advisors

(59)

I understand that commission fees are an important consideration in your bottom line, and as an agent I am always happy to have an open conversation about it with my clients. Transparency is key. You want to see and negotiate their value when they provide exceptional service, market knowledge, and negotiation skills that deliver the best possible outcome for you. The commission reflects the effort, time, and resources they invest in marketing, negotiations, and handling every detail of the transaction to ensure a smooth process. So you should base any disagreements with the commission they are asking on those items.

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