What’s Negotiable in Real Estate — and What Isn’t
Everyone seems to know that home prices are negotiable. So it’s logical to assume that realtor commissions are, too. Unfortunately, I tell prospective clients, my commission is not.
When I practiced corporate law, my firm billed me out at $185 an hour. Could clients have found a cheaper attorney? Absolutely. Could I discount my billing rate for them? No.
Ditto when I worked as a CPA (although my billing rate was $135 an hour — I was fresher out of college then, and not a J.D. yet).
Counter-intuitive as it may seem, what really matters when you engage an attorney or CPA is whether they’re worth what they charge. I personally know of many attorneys who are a bargain at $250 an hour — and others who are overpaid at half that.
When you sell your home, what’s most important isn’t whether you pay your realtor 5%, 7%, 4.5% or some other number — it’s what your home sells for.
When clients hire me, they know — because I explain all the things I do — that I’ll get top dollar for their home, whatever it is.
Any realtor who can say that and deliver is worth what they charge.