How do I negotiate a realtor's payment?

Commission rates are always negotiable. The best way to approach it is by discussing the marketing plan, level of service, and expected results. An experienced agent who offers professional photography, online exposure, and strong negotiation skills often brings more value than a lower commission alone. Ask your agent to explain how their fee supports your goals — especially in today’s competitive market.

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.

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.

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.

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.

That’s a fair question, and you’re right that most business transactions involve some level of negotiation. In real estate, compensation is typically negotiable, but it’s also important to understand what services and expertise you’re receiving in return. A good starting point is simply asking the agent to walk you through their commission structure and what it includes. For example: “Can you explain how your commission works and what services are included?” That conversation often gives you a clearer picture of the marketing strategy, negotiation experience, and level of service they provide. Also keep in mind that the lowest commission doesn’t always produce the best outcome — an experienced agent can often negotiate a higher sale price or better terms that more than offset the difference. If you have specific questions about how this works in practice, feel free to reach out.

The best way to negotiate is to get them to compete. Get a few bids just like you would with a contractor, see what they each have to offer and compare. Make sure you search their track record and how many years they have been in the game. Experience is definitely crucial. That being said, study how they react and what they say when you push on their commission. This is an opportunity to see how they work and how the react when negotiating tough deals. on your behalf. Remember, they will also have to negotiate against other trained agents and sometimes even attorneys who get in the middle of negotiations. If they can't show you why they are worth their commission, or give you a win/win solution for the opportunity to serve you, how will they represent you and your property against everyone else? Many times the cheapest agents can cost you way more when you're in the middle of a deal than the ones who show you true value and why they are worth what they are charging.