When Teri Karush Rogers of BrickUnderground.com asked me to write a post about how to negotiate a listing agreement, I leaped at the invitation.
With cold fear.
My concern was how other brokers might react to my disclosure of our vulnerabilities — the best way for a seller to negotiate a lower commission than the one that the listing broker proposes.
Happily, if anyone objected to what I revealed, I haven’t heard of it. Perhaps that’s because the first point I made is that a seller needs to begin such a negotiation by recognizing two things: what a broker brings to the table and the dollar cost of even a one-point reduction in a fee.
But commission isn’t the only topic of potential negotiation. Among other possibilities are length of the exclusive agreement, exceptions to the agreement and marketing initiatives.
In addition, it may be the broker who brings up subjects worth negotiating, including a timetable for price reductions and improvements that the seller must undertake.
The sellers who know what to expect when hiring a broker are the ones who will enjoy the best experience when it comes time to market, sell their homes and move on without regrets.
Tomorrow: Analyze this
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Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022