Ask Phyllis: a blog series of frequently asked real estate questions. Email us here
Negotiating the Realtors Commission
Dear Phyllis,
I will be selling my Glendale home in the fall. What is the best way for me to find the agent with the lowest commission? JL
Dear JL,
In our neighborhood, the most common commission structure is between 5% – 6%. The commission is divided into four ways:
1) Listing Agent (agent who represents the seller)
2) Listing Agent’s Broker
3) Selling Agent (agent who brings the buyer)
4) Selling Agent’s Broker
Real estate commissions are typically split evenly between the listing agent and their brokerage, and the buyer’s agent and their brokerage. However, sellers can negotiate these commissions.
Still, the lowest commission does not always put the most money in your pocket. For example, assume you sell a home for $1,000,000 and negotiate a 5% commission. After paying commissions, you net $950,000. Now assume the same home sells for $1,025,000 with a 6% commission. In that case, you net $963,500. As a result, you earn $13,500 more despite paying a higher commission.
You can also structure negotiations strategically. For instance, you might reduce the commission if you find the buyer yourself. This approach keeps incentives clear while allowing flexibility.
However, focusing only on the lowest commission can backfire. A lower commission often attracts less experienced agents. In contrast, strong agents negotiate harder and protect your final sales price. Therefore, you should not ask who charges the least. Instead, ask, “How do I maximize my net proceeds?”
Next, evaluate the agent’s full marketing plan. Look at experience, strategy, and services. Do they hire a professional real estate photographer? Where do they advertise your home? Since about 90% of buyers search online, a strong digital presence matters.
Also, ask about home preparation advice. Many agents recommend inexpensive improvements that deliver strong returns. Some even include staging consultations at no extra cost.
Ultimately, the right agent helps you sell faster and for more money.
To sell for the highest possible price, your Realtor’s marketing plan, not their commission, is most important to your bottom line.
