Negotiate lower agent fee?

Melba, yes, and the rules changed in a way that works in your favor since you asked this. Every answer above this one predates August 17, 2024, when the NAR settlement practice changes took effect, so the landscape is different now than what you are reading. Here is what changed and why it matters to you. Offers of compensation to a buyer's agent can no longer be published on the MLS. Sellers are no longer automatically on the hook for the buyer agent's commission. And any agent working with a buyer must have a signed written representation agreement, with their compensation spelled out, before showing homes. Practically, this means the listing side and the buyer side are now two separate negotiations rather than one bundled number. You negotiate what you pay your listing agent. Whether, and how much, you contribute toward a buyer's agent is a separate decision you make, and it is a genuine negotiation now rather than a default. Now to your specific idea, which is a good one and has a name. What you are describing is close to what the industry calls a variable rate commission. In the standard version, the listing agreement provides a lower rate if the listing agent also produces the buyer, because there is no second agent to compensate. It is legitimate, it is common, and it has to be disclosed. If you ask for it, most agents will at least discuss it. Your version is a little different, because you are asking about a reduced fee when you, the seller, produce the buyer. That is also negotiable, and it usually shows up as a named exclusion or exception in the listing agreement. If you already have specific people in mind, name them in the agreement before you sign, with an expiration on the exclusion. Trying to carve someone out after the fact rarely goes well. Be aware of what you are trading for in the variable rate scenario, though. If your listing agent represents both sides, they are either working under your state's rules for representing both parties or handing the buyer off to someone in their office. Confirm how your agent handles that, in writing, before you sign, and understand what changes about the advice you receive. The savings are real. So is the reduced advocacy. Go in with eyes open. Two more things that matter for a home you describe as above average price. Ask about a tiered structure rather than a flat cut. A common version is a base rate plus a bonus above a target price. That aligns the agent with getting you a higher number instead of a fast number, which on a higher priced home in a smaller market like Magnolia is worth more than a fraction of a point. Ask what specifically you are giving up. A lower fee is fine. A lower fee with no professional photography, no video, no print, and limited syndication is not a discount, it is a different and worse product. Get the marketing plan in writing next to the number. On a higher priced home in a rural market, where the buyer may come from Jackson or out of state, marketing reach is what finds them. And put every bit of this in the listing agreement itself. Nothing verbal survives a closing. I am a real estate professional, not an attorney, so have your agent or a Mississippi attorney confirm the dual representation rules for your situation. I am Zoltan Peresztegi and I work in Los Angeles and the South Bay. Magnolia is not my market, but I am glad to help you think through a fee structure if you want to lay out the specifics, and I can connect you with a strong local agent in southwest Mississippi. Zoltan

Yes, it's absolutely reasonable to discuss commission and fee structure before signing a listing agreement. Real estate commissions are negotiable, and many sellers have conversations with their agent about different scenarios. If you believe you may already have a buyer, you can ask whether the commission would be adjusted if that buyer ultimately purchases the property. Keep in mind that even if you bring the buyer, your agent may still be handling pricing, marketing, negotiations, contract management, inspections, and coordinating the transaction through closing. The amount of work involved will vary depending on the situation. The best approach is to have an open conversation with the agent and make sure any agreed-upon terms are clearly documented in the listing agreement. Transparency upfront helps avoid misunderstandings later. Juan Picos, Realtor

Yes, that's a reasonable discussion to have. Real estate commissions are negotiable, and it's common for sellers to ask about different fee structures based on how the transaction unfolds. For example, some sellers ask whether the listing broker's compensation would differ if the buyer is unrepresented, if the seller finds the buyer independently, or if certain services are no longer needed. Every brokerage has its own policies, so it's important to discuss these scenarios before signing the listing agreement and make sure any agreed-upon terms are clearly documented. Rather than focusing only on the commission percentage, consider the overall value the agent provides. A strong marketing plan, skilled negotiation, and effective transaction management can often have a much greater impact on your net proceeds than a small difference in commission. The best approach is to have an open conversation with your agent about your expectations and ask them to explain their fee structure. A good agent should be happy to discuss the options and help you find an arrangement that works for both of you. Juan Picos, Realtor

Melba, yes, agent fees are negotiable. You can ask whether the listing fee would be reduced if you personally produce the buyer, especially on a higher-priced home. Make sure the terms are clearly stated in the listing agreement, including what happens if the agent or another agent brings the buyer.

Melba, you can always ask but if an agent is doing twice the work, I believe they should be compensated as such don't you? Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

This is a common question among Florida buyers and sellers, and the answer depends on your specific situation and local market conditions. Understanding the fundamentals before making any decisions protects your investment and your timeline. In Brooksville, Hernando County, Florida, the real estate landscape has its own characteristics that affect how this plays out in practice. The Hernando County market attracts a diverse buyer pool including relocators from higher-cost states, retirees, and local move-up buyers, which creates consistent demand across most price points and property types. The strategic approach is to work with a local agent who can pull current comparable sales data and walk you through the specific factors that apply to your situation in Florida. Every market is different at the neighborhood level, and decisions based on general advice or national headlines often miss the local nuances that matter most to your outcome. Making informed decisions based on local data is always the strongest position. Kevin Neely & Kaitlynd Robbins | K2 Sells

Yes, this is a completely reasonable negotiation and many agents will agree to it. If you bring the buyer yourself, meaning no buyer's agent is involved, the listing agent doesn't have to split their commission with another agent. In that scenario, asking for a reduced listing commission makes sense because the agent's workload is similar but the deal structure is simpler and they're keeping the full commission rather than splitting it. A common arrangement is to agree on a standard commission rate if a buyer's agent is involved, and a reduced rate if the seller introduces the buyer directly. For example, 5 percent if a buyer's agent brings the buyer, 3 to 4 percent if the seller produces the buyer with no outside agent. The specific numbers are negotiable and depend on your market and the agent. Get this written into the listing agreement before you sign. A verbal understanding isn't enforceable. The agreement should clearly state the commission structure for both scenarios so there's no confusion at closing. On a higher-priced home, you have even more leverage in this negotiation because the dollar amount of the commission is significant. Agents know this and are generally more flexible on rate when the price point is above average.

Everything in real estate is negotiable. A great agent has all of these scenarios negotiated with you prior to listing the property.

Negotiating commission up front is always an option. Keep in mind, your agent is the one bringing a buyer whether they are representing them or not due to the work they put in helping prepare your home to be listed, having professional photos taken, creating the MLS listing & marketing the home.

This question I believe is based on the recent court case in which it was determined that the buyer can negotiate the commissions with their agent.

Yes I think that would be a fair thing to ask if the seller provides the buyer