How to Negotiate Realtor Fees in Seattle

When selling a property, Seattle homeowners want to maximize the amount of money they walk away with from the home sale. To do so, sellers not only need to achieve the highest price possible for their home, they also need to minimize the closing costs on the transaction. And the largest closing cost that sellers can control is realtor fees.

Seattle is experiencing a seller’s market right now, and just as seller’s have more negotiating power over buyers, they also have greater negotiating power with their realtors as well.

Houses in Seattle are selling in a matter of days with a majority of these sales resulting in bidding wars. It has never been easier to sell a house for a great price, and is exactly why sellers shouldn’t overpay for realtor fees.

What is the average real estate commission in Seattle?

The average real estate commission rate in Seattle is approximately 5% to 6% of the sale price. These commission rates can vary from property to property and from brokerage to brokerage depending on the services provided.

When hiring a Seattle realtor, homeowners enter into a contract called a listing agreement. Like any other contract, the homeowner and realtor negotiate the terms of that agreement. The most important financial term of the agreement is the real estate commission rate.

Homeowners need to know that real estate commission rates are always negotiable when you sell your home.

How can sellers negotiate lower commission rates?

First, the best way to negotiate a lower commission rate on your home sale is to simply ask. Realtors will make their big pitch, explaining their services for marketing your house, in order to justify the rate they charge. Just because a realtor quotes a realtor fee of 5% or 6% doesn’t mean you have to accept it on the spot. Sellers can request a lower amount.

Second, make sure to research commission rates in your area. While you can easily search the internet for average realtor fees in Washington, rates can vary from city to city depending on the list price of houses. In order to negotiate the best rate, you need to be informed on the going rates in your area.

Third, homeowners should always interview multiple agents. One of the biggest mistakes sellers make is hiring the first real estate agent they meet - usually the referral of a friend or neighbor. Sellers can achieve a lower commission rate by creating competition between local agents for their business.

Finally, confirm what services are included by the realtor you hire and how much they invest in the marketing of your property. For example, there is a big difference between a realtor who shows up with a professional photographer and a realtor who shows up with their iphone to take listing photos. Ask for a description of services in writing so you can transparently compare agents.

Tips to negotiate realtor fees in Seattle

• Ask for a lower rate
• Research commission rates in your area
• Interview multiple real estate agents
• Confirm the services included by the agent

Are there alternatives to the high fees of traditional brokers?

In the past, home sellers felt trapped having to choose between the high fees of a traditional realtor or the flat fee of a discount real estate agent.

Luckily, thanks to technology, there are now modern brokerages that are able to provide the luxury experience of a traditional realtor for a much fairer commission rate. 

For example, Prevu Real Estate offers Seattle homeowners a Smart Seller Program. Sellers pay a 1.5% commission to the listing agent while offering a buyer’s agent commission. As a result, homeowners can receive the full service of a local expert, and at the same time save significantly on commission fees compared to a traditional broker.

What additional costs can sellers expect?

In addition to realtor commissions, there are other closing costs that home sellers in Seattle need to plan for. These transaction closing costs include real estate excise taxes, escrow fees, title insurance premiums, as well as local recording fees and taxes.

How can buyers negotiate a better deal?

While sellers have a greater ability to influence the commission rate for realtors, buyers also have the ability to negotiate a better deal on real estate commissions.

Commission rebates are a modern way for homebuyers to make their home purchase more affordable. The concept of a commission rebate is straightforward such that a buyer’s brokerage gives a percentage of their realtor fee back to the buyer in the form of a rebate. 

Interested in buying or selling a home in Seattle? Learn how you can save on realtor fees with Prevu’s seller services or get cash back with Prevu’s buyer commission rebate.