Bucks County Real Estate Web Resource

Pay Lower Commissions With Your Agent

You are ready to hire an agent in Bucks County. Should you try to negotiate the best commission possible?

The answer is yes. Although we highly recommend that you do not base your decision on the agent, largely upon their commission. Let me explain.

If you go to an experienced agent in Bucks County and ask them to lower their commission, some will and some will not. There is a good reason for this. If an agent says yes, that is because they are willing to and able to flex their price to attain you as a client. Although you will find that most will flex only slightly or not at all. Here is the reason.

An experienced Bucks County agent has built their business on their service. They have taken the time to learn the industry well and provide solutions to their clients, which in return makes the client extremely satisfied. Their focus is on providing solutions, not on their price. Their focus is making their client happy, which will result in continual repetitive business, not low fees. Their niche in the market comes from their ability to deliver, obtain excellent results and make the process move smoothly.

What will commonly occur in a situation where an established agent is asked to reduce their fees, they will educate the client on why they charge the fees they do. If the main focus is on commissions, then often times they Bucks County agent will encourage the client to shop around for a cheaper commission.

The downside to this for the client is that they are making their focus on price and not quality, which could come with a lot of revivifications when selling their home in Bucks County. This can be devastating and in the long run end up costing a lot more. When an agent is willing to work for a low commission, it’s because they do not have strong demand. This can be the result of a new agent that lacks experience in Bucks County, an agent with a bad track record or an agent that simply does not understand the industry clearly. If this is what you, as a client, are willing to compromise to save $500-$2,000, then just be aware of what you are potentially stepping into.

Here is what we recommend to do if trying to receive a lower rate. First, make sure the agent has a strong track record and knows the business well. Second, when you approach the agent, express to them your concerns on commission. Ask them what they can do to offset the commission or lower them. An agent cannot pay you for a referral, but if you know someone or a couple people who are thinking about buying or selling, then tell them and place them in contact with the agent. The agent will thank you with a lower commission. Another approach is if you are selling your home, tell the agent you want lower commission in the transaction and that you will also buy a home through their services. By giving them the commission on both sides of the transaction, they will be willing to negotiate.

Before you do make your final decision, make sure you give the agent an opportunity to explain to you what you can do to lower the commission. If you are not going to use them, give them details on why and let them place one more offer on the table. Bucks County agents live a life of negotiations, so use this to your advantage, but be sure you are not selecting an agent solely on price!