Negotiating Realtor Fees to Reduce Commission

At Listwizer, our experienced team of licensed real estate professionals in Los Angeles knows that realtor fees and commissions can comprise a large chunk of the money home buyers and sellers are counting on to help them move forward in a new location.

No matter your plans, dishing out the national average of 5.5% in realtor commission fees can hurt anyone’s bottom line. By the numbers, trimming even a small percentage off the agent’s fee can have an impact. The question is, how do you get there from here?

Our Los Angeles County discount brokers are real estate agents who offer reduced commission rates compared to traditional full-service agents without compromising our services. We also offer free advice for home buyers and sellers throughout California on reducing commission and realtor fees, so even if you don’t choose us, you can keep more of what’s yours.

Here are a few tips to get started.

Know Who’s Paying the Realtor Fees

Sellers typically cover realtor fees for both their and the buyer’s agents. The average realtor commission is 5.5% and will be split almost evenly between the listing agent and the buyer’s agent. The commissions for both agents are usually included in the home’s final sale price.

For example, on a $750,000 home with even a 5% total commission rate, the seller would pay the agents $37,500 from the sale proceeds at closing.

Top Tips for Reducing Realtor Commission Fees

As with most negotiable fees, you could discuss the total commission rate with your realtor and potentially get a better one. Remember, realtors are not necessarily in the business of taking less money, so this may be a challenging conversation. However, it is an important one.

Trusted real estate agents should be willing to talk to you openly about their fees.

When you begin this vital conversation, talk to your realtor about their fees. Acknowledge the agent’s value and respect their professionalism and ability to do their job. Be transparent about your financial situation and why a commission reduction would be beneficial and could help you meet your financial objectives.

Do not approach negotiations as a win-win scenario. Instead, be willing to compromise. While you might not get everything you ask for, a willingness to compromise can lead to a good deal for both parties.

Other ways to negotiate realtor fees and reduce commission may include:

  • Understand Your Home’s Value: If your home is desirable, agents may be more willing to lower their rates to secure your listing. This could be due to being well-maintained, being in a prime location, or featuring popular amenities. On the other hand, homes that present challenges in selling, such as needing significant repairs or having unique features that might not appeal to the general market, could mean that agents are less open to reducing their fees.
  • Invest In Your Home to Improve Its Appeal: If you have limited room to negotiate due to the home needing attention, simple improvements such as repainting, landscaping, or carpet cleaning can enhance your home’s appeal. By making these upgrades, you facilitate your agent’s job and potentially increase your home’s value. As a result, your agent might be more willing to negotiate a lower commission rate.
  • Emphasize How Market Trends Apply to Your Home:In a seller’s market, agents might be more flexible with their commission rates. The quick turnover of properties means they can afford to accept a lower rate for a faster sale.
  • Don’t Skip a Professional Listing to Save Money: Selling a house involves more than just listing it. Agents invest time and often cover upfront costs like professional photography and marketing. Opting out of essential services to cut costs might backfire by making the realtor’s job harder and leaving no room for negotiating fees.
  • Demand Transparency to Avoid Paying Junk Fees: Junk fees can include, but are not limited to, administrative or transaction fees disguised as essential services. These fees are not mandatory in any market but can be added to the commission and increase the cost of selling your home if you’re not asking the right questions.
  • Shop Around for the Best Possible Value: Consider exploring discount brokerages or agent matching services, which can provide built-in commission savings without negotiating.

Use a Flat Fee Premium Service to List Your Home

Working with a discount real estate brokerage like Listwizer can prevent potentially uncomfortable conversations with your realtor without compromising marketing services. Listwizer carefully selects agents based on their performance and commitment to transparency, ensuring you won’t face hidden or excessive fees.

Partnering with Listwizer also means complete listings on the MLS and premium placement on hundreds of other sites like Zillow,, and Redfin. You’ll get the expertise of top agents while paying only a flat fee of $2,500 or up to a 1% listing fee. This offers significant savings without compromising service quality.

Our Los Angeles real estate professionals prioritize each client’s unique buying and selling needs because every step we take from here defines their futures, and we want to be a part of their journeys. Contact us today to learn how we can put our team of licensed real estate professionals in Los Angeles to work for you!