Welcome back to the channel, everyone. I’m super excited to have you back. I’m Nathan Payne. And today we’re gonna be talking about how much do sellers pay real estate agents and commission fees, and why that’s important to know.
By the end of this video, you’re gonna know exactly how much real estate agents make and how much sellers are willing to pay real estate agents. You’ll also learn how much sellers are willing to pay agents that list their home, or how much they’re willing to pay buyer’s agents. Why do sellers use agents to represent them and list their homes, if agents get paid too much money for the work they do? And how to get discounts on the Commission’s agents are going to charge you for listing their home and from buyer’s agents. Alright, so we’re going to talk right now guys about how much real estate agents make. It’s very flexible. And it’s negotiable, meant if a real estate agent says, Hey, I charge 3%, you say, I’d love to work with you. But I can only two point do 2.5% For you listing my home, do you think they’re really going to turn that down? Probably not. But maybe some agents will. But this is how it usually works. When you list your home with a real estate agent, you can pay them the going rate is 3% for a listing agent, and then a 3% commission is what they get the going rate for buyer’s agents. So really, when you want to sell your house and you go the traditional route of listing with a real estate agent and having a real estate agent, bring the buyer you’re looking at about 6% Commission, okay? Now, that’s can be a lot to some people. I mean, if you have a million dollar house 6% of that is a ton and you know, even if half a million, whatever, but that is the rate right now. And that’s how you would pay agent. That’s how agents get paid by commission. So why the heck would someone want to list their home with a real estate agent and pay all that money to have them listed? Well, there’s a tons of benefits to working with a real estate agent. Number one is you don’t have to deal with all the showings you have to deal with all the people calling. And then if you’ve ever listed your house for sale by owner, you’ll see that you get a bunch of jokesters, a bunch of people calling there aren’t qualified a real estate agent deals with all that. Okay, they set up all the walkthroughs the showings. So that is one of the greatest benefits of having a real estate agent is your time and just making sure that they can negotiate and filter through the people that are a waste of time. So having a real estate agent as a listing agent is super beneficial for your time to save your time and energy and not have to worry about dealing with all those jokesters another reason why dealing with a real estate agent that’s going to list your property is beneficial as they deal with all the paperwork, you might not know how to do the paperwork. And I’ve heard that the paperwork is not that big of a deal. But for me, when I’m selling one of my most my biggest assets, my one of my biggest purchases that I’ve made, and I want to make sure I’m doing it, we’re selling it the right way. You want to have a professional that’s going to deal with the paperwork. So make sure you’re not doing anything wrong. So having a professional real estate agent in your corner is super important to make sure that the paperwork is done right another benefit of working with a real estate agent as they’re going to put your property in front of more people than you could do it yourself. So if you’re just going to do it yourself and do for sale by owner, the chances of everyone seeing that deal on Zillow or for sale by owner sites. It’s pretty slim. But if you put that property on the MLS through the agent on the multiple listing service, everybody’s going to see it I’m going to see it the other agents will see it everyone it’s just gonna get maximum exposure goes across all platforms even like the the ones like Zillow and Redfin, what they do is they take all the listings from each MLS, depending on the state, and then they put them they blast it all out. That is why you want to work with the real estate agents because you get maximum exposure on your property, you’re gonna get the most offers that way. And you know, what does that mean? More offers means a higher price. So if you want to get the most money for your house, you got to listen. And guys, I know this because I deal with a lot of properties that are off market. And I tell sellers all the time, say hey, are you sure you don’t want to list this, you’re gonna make more money, I’m upfront honest, as always transparency, you should listen. And most of the time when they don’t want to listen to the property and they want a cash offers, because they don’t want to deal with the hassle listing, it can be a hassle, because people are gonna walk through your house, they’re gonna look at your stuff in your closet and being all their stuff. When you sell a house for cash. It’s easy, quick, simple, and you don’t have a bunch of showings. But that is one of the main reasons why people list they get the most money for it get the most exposure, most eyes on the property. do real estate agents really make too much money? Well, I mean, it really depends what you think a lot of people are like, they don’t see the value in real estate agents because they can sell the deal themselves they can do for sale by owner. But the value of a real estate agent, in my opinion is when it’s in a seller’s market when there’s low low inventory. Having a real estate agent for me isn’t as valuable as it is when it’s in a buyer’s market when there’s tons of properties on the market. And you really need to get your house sold and there’s just not a lot of buyers. That is why you know having a real estate agent can be super helpful and do they make too much money? And then that’s really your opinion. I believe that if this is one of the most expensive assets that you have, that you’re trying to sell You want to get a professional to help you make sure you’re selling the house for the right amount. So it’s up to you. I don’t think real estate agents get paid that much. I mean, it really depends on how does what kind of market you’re in. If it’s in a seller’s market, then yeah, real estate agents really don’t do too much work because anybody could sell the house. But right now with the way things are, yeah, they’re probably going to get what they’re working for, just because it’s harder sell properties. Before I move on to the next point, guys, I want to ask you for a favor a very, you know, something that really helped me out please comment below because I want to hear from you. I really want to know who’s watching these videos and I want to be able to interact with you I read all my all the comments I get I respond because I want to be able to learn from you guys. I mean, that’s that’s how I am I want to interact, I want to help you guys succeed. So please comment below, say what’s up, get leave a little question. Tell me what you think about working with real estate agents. Or even if you are a real estate agent, comment below and let’s chat, there’s a lot of benefits to paying more money and listing with a real estate agent, instead of just doing a for sale by owner or going with these low listing services like homie or these flat rate places. The benefits of paying more is, if you’re working with a real estate agent that’s going to make 3% or 6%. Commission, their drive to get you the most money, it’s mutually beneficial, they’re going to work as hard as they can to get you the most money for your property because they want to make their commission, most real estate agents sell like one to two properties a year. So if you’re working with one doesn’t sell a lot, this is their chance to make a living, this is their chance to make the money that they need this year. So they’re going to be really driven to get you a high price and work hard. Or they at least they should, you know really depends on the real estate agent you’re working with. But if you want to pay more, if you want to work with a real estate agent, and you’re going to pay more is most of the time, it’s beneficial for both parties, because they’re both trying to work hard to make that that as much as I can. The benefits of paying less for real estate agent are basically that you just don’t have to pay that much. And it depends again, on the market you’re in in a seller’s market. If you can list the property with a flat fee listing service homie or any of these other ones that are out there, then you pay like what 1500 $2,000 instead of $20,000 to list the property that’s going to sell quick anyway, because the market is in favor of sellers and there’s less inventory. So it really depends what kind of market you’re in, I wouldn’t want to list my house in a buyer’s market on a flat fee listing service, because you’re just going to just sit there and wait and hopes and so it makes an offer. What I gotta tell you guys is it really just depends. If you pay less, it really depends on the market you’re in. But again, you know, having a real estate agent in your corner is super important. In my opinion. I’m not even a real estate agent, but I believe it is helpful to have a professional in anything you do giving you advice. So how do you negotiate a discount with a real estate agent, even one that wants to get their 3% Commission? Well, you really can negotiate the the listing agent, you can negotiate their their fee. But really, you can’t really negotiate with the buyer’s commission because the buyer’s agent is going to bring a buyer if he feels their buyers your house if they feel like they’re getting compensated. Now let’s say you’re only willing to pay 2% to the buyer’s agent, and everybody else in the area is willing to pay 3%. Well, that buyer’s agent that only does one or two deals a year, he’s probably not going to even though he should, he’s probably not going to show your house to his buyers that he has because he wants to make as much commission as he can. So if you feel like you can negotiate on the end of the buyer’s agents commission, you usually can’t, again depends on the market you’re in if you’re in sellers or buyers market. But usually, I don’t skimp on the commission of the buyer’s agent, because they’re the ones that are bringing the buyers, they’re bringing the value. Now when it comes down to a seller’s agent, you can can negotiate for sure an agent is going to want to list your house 100%. And then most every time whether it’s a seller or buyers market there you want to list your home. So what you can say is say look is that you can negotiate. You can say hey, look, I’m talking to a lot of different agents. I really like you. But you know, I’m I’m really trying to keep as much money in my pocket as possible. I’d like to work with you. But what’s the best deal you give me on your commission? I know you asked for 3% I don’t mind paying 3% If that’s the best you can do. But I’m asking you for help. I’m asking you for a discount. What can you do for me? And if they’re like, Oh, I can’t go over? I can’t go under 3%. You could say okay, well, hey, no, I appreciate you saying that. If that’s where you’re sticking, that’s fine. I’m just you know, I’m gonna have to look somewhere else. I got a lot of friends, I got a lot of buddies that have their license, so I’m just gonna check it out. And then it’s a negotiation, you’re coming from a place where you don’t need them. All right, there’s so many real estate agents, you don’t need to just be stuck to one, you can say hey, look, I’m trying to get a little bit of a deal. I’m not trying to get you down to point 5% or 1% Just give me something and then you can negotiate it that way. But if you are not needy, if you’re just like, hey, look, I got a lot of options here. That way you can, you know, be in a place of power instead of a place of like necessity or like you know, you’re needy. So that is how I would negotiate your commission with the agent have a free giveaway for you if you want to work with real estate agents if you want to if you’re an investor and you want to learn how to make money by working with real estate agents, check out my mind map I lay out the whole process of how to make offers on the MLS and negotiate with agents
