When you hire a real estate broker to sell your home, they charge a commission for listing and selling your home. The rate varies and is negotiable. The rate is a percent of the sales price. A typical commission here is 6% and is split between the listing agent and the buyer's agent. The buyers agent's commission is listed on the MLS listing sheet and can be viewed by any agent who has access to the MLS. When you start negotiating the commission to a rate lower that 6%, ie. 5%, you need to clarify with the listing agent you are planning to hire how they are willing to split the commission. A listing agent, may consider the 2% commission and give the buyers agent the 3%. But when the listing agent starts to lessen the buyer's agent, even at 2.5%, the buyer's agent tend to show the listings that pay a higher commission first than those paying less. In the same token, hiring a discount agent to list your home could mean that you will not get a service level that you expect. Most discount agents would simply put your home on the MLS and a for sale sign on your front lawn and you may not hear from them until the listing expires. Some sellers agree to this and they also agree to show their own home to the buyers.
A discounted commission is usually negotiated and given by the listing agent if you agree to use the listing agent to purchase your new home.
So before you negotiate to a lesser commission, think twice and find out what level of service you expect to receive.
