You want to make sure that you are in a position to obtain your next home with as low of a loan as possible from your bank. The best way to reach this goal is to negotiate successfully with your real estate agent.
Your First Priority is to Negotiate the Level of Commission
If you are in the mood to negotiate a successful real estate deal, you will first need to make sure that you are properly prepared. Finding easily affordable new homes for sale in Temecula will be a much easier process when you have all of the necessary negotiating knowledge in place.
With this in mind, you can proceed to the first order of business. This will be to negotiate the level of commission that you are willing to pay to your real estate agent once the sale of your property is complete. This level of the commission will have an effect on your rate of profit. For this reason, you need to negotiate carefully.
The Rate of Commission You Pay Needs to Be Worked Out in Advance
The first thing you need to know is that there is no universal standard of a commission that applies to every real estate agent and every real estate deal.
The reason for this is that such a standard has been deemed illegal. In most real estate markets, the typical listing-side commission will be set a level of around 3 percent.
This means that you do have some leeway when calculating the exact rate of commission that you are willing to give the real estate agent that you choose to work with.
It’s important to note that real estate agents in a particular region are prone to charge more or less the same level of commitment in order to stay competitive.
However, this does not mean that you are automatically locked into a certain rate of commission that you can expect in advance to pay.
As noted above, this would be going against both state and federal laws. This means that you may be able to negotiate a rate based on the value of your home, its location, and its estimated sale time.
Make Sure That All Renovations Are Completed Before You Negotiate
Another important point to keep in mind is that you will need to have completed all of your necessary renovations before you list your home on the market. This is also something you should take care of before you enter into negotiations with a real estate agent. The reason why is because they can affect the level of commitment.
You don’t want to negotiate with a real estate agent based on a total home value of $400,000, only to then discover that your property requires renovations to the tune of $40,000. You are already losing 10 percent of your total profit while still paying your real estate agent a commission fee based on the originally projected value.
Make Sure That Your Home Can Be Shown at Any Time
Another method you can use to keep the rate of commission you pay to your agent within reasonable parameters is to make sure that your home is available to show at any time. You can vacate your property, thus leaving it empty and ready to be shown by whoever wishes to do so. You can also have it professionally staged for the same purpose.
other valuable tips:
Tips On How To Become a Good Real Estate Agent
Referrals and Recommendations: 7 Steps for Finding a Reputable Real Estate Agent
Making your home available to be shown at any time grants a powerful incentive to a local real estate agent to be the one that actually closes the deal. This gives you much more leverage to negotiate an affordable rate of commission.
The Time to Negotiate Your Next Real Estate Deal is Now
Armed with the right amount of negotiating knowledge, you will be able to compass the sale of your home in a much more timely and profitable fashion. You will also be able to put yourself in a much more favorable position when it comes to working out a deal with your real estate agent. The time to prepare for this new challenge is now.
Image Credit: negotiate with real estate agents by envato.com
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