One can negotiate rates with agents. They are not paid for showing a listing. They're paid at sale time.
When you list your house with an agent, you agree on a percentage. That is split between the listing agent and the selling agent. When the selling agent is looking at houses for his clients he can see what his cut will be. If everyone else in the area is offering the buyer's agent 3% why would someone bring a client to your house? Maybe he's stupid. The time to negotiate is when you are deciding on an agent. The only time I will but what I'm getting (which is normally 6% which is split) is if the owner is going to move to another house and they will use me to get them a house. Then I will agree to 5%, and still give the seller the 3%. The selling agent doesn't actually get the whole 3% which most unsophisticated people don't understand. My broker typically get's 30% of whatever I get. So does the buyers agent. He's broker get's a cut as well. It's not as lucrative as some people think. The office building, the advertising etc, costs money. Doesn't your boss have overhead in his business? Do you split the prophet with him, with out taking into consideration of the costs?? If you are so smart so sell it yourself. You think you are going to do that for nothing? How are you going to get your house known? You have to advertise. How good are you at contracts. Do you carry insurance in case you neglect to disclose something about your house? I'm dealing with someone right now that is advertising his house as 2000sf, 4 br.
500 Sf of it was never permitted. 2 of the 4 bedrooms, don't have legal egress. There's a lot more to selling a house than it appears. If it appears easy, it's because you have a good agent.
All good information.above. I have a Texas real estate sales person license and a Texas building inspector's license. I went to real estate school after I retired from my corporate career, to better enable me in my real estate investment activities. That said, I deal with lots of realtors and regularly buy properties. I am familiar with the laws and real estate practices in Texas.
The "standard" commission rate for non-commercial properties is 6% of the ultimate sale price. If a buyer representative (what Caribou Jack refers to as a "selling agent") brings a buyer to the table, the listing agent typically splits the commission with 3% going to each Realty. The typical real estate sales person in Texas works under a broker managing the Realty. A portion of the commission goes to the broker for "overhead". In the instance of very high-dollar properties, many realtors will reduce their commission percentage, as 6% would render an unreasonably high commission.
I occasionally will sell one of my properties. Even though I am fully able to represent myself, I avoid the FSBO route. A good realtor will list your property on many sites beyond the local multiple listing service and run ads in newspapers and various community magazines. A realtor familiar with your area will understand the market and provide valuable advice regarding pricing as well as any improvements needed to attract a buyer. Also, successful realtors often have willing buyers looking for what you may have.
Most real estate agents work hard for their commissions. Those that don't, should be avoided.
T.S.