The Great Real Estate Commission Heist
Dirty Laundry: Alleged High Commissions
- National loan marketplace, LendingTree, dropped a bombshell that’s got the real estate scene buzzing: only 31% of homebuyers or sellers attempt bargaining for a lower commission.
- Of the brave souls who do decide to haggle, a whopping 64% successfully scrounge up a delicious discount.
- Despite these promising stats, a staggering 69% of the crowd doesn’t even bother to try and negotiate commission rates. They are just leaving potentially saving dollars on the table.
- Puzzlingly, around 10,000 real estate professionals around the United States seem to have taken a vow of silence about this issue.
Slippery Slope: Lack of Negotiation Practices
- The LendingTree survey revealed that most homebuyers and sellers, around 69%, do not attempt to negotiate the commission fee.
- This lackadaisical attitude toward negotiation has left many professionals bemused and a little uncomfortable – somewhat like a cat in an unfamiliar hat.
- The research suggests a potential lack of awareness and negotiation education among the general public. Maybe it’s time for a nationwide real estate reboot?
Emerging Trends: Negotiation Success
- The flip side of the story reveals a surprising number of commission bargain veterans: 64% of those who dared, emerged victorious with a lower commission.
- This trivia implies that real estate professionals are more flexible than Susana, the neighborhood’s yoga teacher.
- It’s clear that when it comes to squabbling over commission, it literally pays to try. After all, you miss 100% of the slices of pie you don’t reach for.
At the end of the day, it seems like the real estate, despite its rigid appearance, is more of a flimsy Jenga tower when it comes to commission negotiations. The statistics put forward by LendingTree have unmasked a seemingly unexplored goldmine in the real estate landscape: negotiating commissions.
Hot Take: Let’s Stir Some Action a.k.a. Commission Revolution
This juicy tidbit comes with a built-in take-home message: Negotiate! Roll up your sleeves, channel your inner Ross (yes, that Friends’ episode where he attempts to ‘negotiate’) and never accept the first commission rate thrown at you. Are we hinting at the dawn of a commission revolution? Absolutely! Turning the tide on astronomical commission rates involves shifting the mindset from ‘it’s just the way it is’ to ‘let’s make a deal’. Embrace that haggling spirit and you might just shave a few thousand off your bill, leaving more moolah for fancy light fixtures or that ridiculously priced, but ridiculously comfortable looking, recliner.
So, to all you potential homebuyers and sellers out there who find themselves dreading the ‘C’ word. Fear not! Commission negotiation isn’t a taboo, and it doesn’t have to be as scary as clowns at a circus. It’s time we give this beast a stylish makeover. Instead of nervously sidestepping the dreaded commission conversation, why not jump in and see if you can’t snag a better deal? Dust off that bargaining hat and step into the real estate arena with a newly discovered gusto. You might surprise yourself! Who knows, you might even awake a long-dormant personality trait – that of a savvy negotiator. Now, wouldn’t that be a hoot?
Original article: https://www.inman.com/2024/02/27/survey-supports-realtors-claims-that-commissions-are-negotiable/
