How to Negotiate Realtor Commission in Miami
By Alex Mikoulianitch on September 30, 2024
Veteran and novice buyers yearning to stake a claim in the Magic City can benefit tremendously from working with an agent. The same holds for sellers who want to secure the best deal.
The challenge is finding real estate agents in Florida who can deliver the professional service you are seeking for a fair commission rate.
Below, we break down everything you should know about realtor fees in Miami and how you can negotiate them.
Negotiating Realtor Fees in Miami
- What are realtor fees in Miami
- Know what you’re paying for
- How sellers can negotiate realtor fees
- How buyers can save via commission rebates
What are realtor fees in Miami?
Miami home sellers are likely well aware of how expensive Florida real estate commissions can get. But before you start negotiating for a better rate, you need to understand what realtor commission fees are and what they cover.
A real estate commission is either a flat fee your listing agent charges or a percentage of the home’s final sale price charged at closing. Traditionally, this percentage has ranged anywhere from 3% to 6%, and can vary from brokerage to brokerage.
That commission technically pays for the agent’s expertise as they prepare your listing, offer showings, and help secure a qualified buyer who can purchase your home.
The key to negotiating that commission lies in understanding the services your broker offers to help sell your home.
Know what you’re paying for
Before you partner with an agent, you deserve to be fully informed of the services you’re paying for.
Your first step is to determine the services you need. Some Miami sellers want seasoned Florida real estate agents that handle every aspect of the home sale, such as staging the home, promoting the listing, and utilizing social media.
Others may be content with brokers who carefully handle the complicated paperwork and navigate negotiations.
As you ask more of your agent, chances are their fee will be higher.
Sellers should interview multiple local agents before committing and ask detailed questions about how the brokerage works.
You want to be comfortable with how the agent will communicate and how often, what their availability is, and how they plan to secure the best possible deal.
How sellers can negotiate realtor commission in Miami
The cornerstone of a seller and listing agent relationship is trust, and both parties should feel comfortable with financial details before establishing that relationship - particularly on commission, which is one of the largest seller closing costs in Miami.
It may be a red flag if the brokerage you’re interested in is unwilling to negotiate their total commission and explain why. You’re embarking on a significant financial transaction, and any way you can save is crucial. If you don’t ask for a lower commission rate, you won’t get it.
How you negotiate will depend on many factors, such as the kind of property you have, the price you’re aiming for, and the work you’re willing to put in.
For instance, if the agent offers a full-service approach that includes staging the property, you can offer to take care of those costs yourself in exchange for a lower real estate agent commission.
Even though Miami real estate is always in demand, it takes knowledgeable expertise to find the right buyer and negotiate your desired price. So if you are convinced the broker is the perfect fit, negotiate accordingly to ensure you both walk away satisfied with the terms.
How Miami buyers can save with commission rebates
Realtor fees are also directly linked to potential savings for aspiring Miami homebuyers.
Just as sellers should search for the right broker to represent them when selling a house, buyers should put in the same effort to find the perfect buyer’s agent that will offer a commission rebate.
Sellers can save by negotiating their real estate commission in Florida prior to signing a listing agreement, but buyers can save by receiving a portion of their broker’s fee as a rebate.
In traditional real estate transactions, the seller technically pays for both the listing agent and buyer’s agent commission, as both agents typically share the commission at closing.
But this is a half-truth, as the seller usually accounts for this by embedding the extra expense into their target sale price of the home.
Modern brokerages like Prevu invest in a streamlined online buying process that makes buyer commission rebates possible. The rebates are essential tools to make homebuying more affordable in Miami and help offset high down payments and closing costs.
For example, Prevu currently offers the largest rebate in Florida, allowing buyers to receive a portion of their agent’s commission, up to 1% of the final purchase price of a home.
