Negotiating with Your Listing Agent part 1
Information for Sellers

by:Sally Anderson
After narrowing your hunt for a listing agent, you'll be faced with the next task of the home seller: negotiating a listing contract. These contract negotiations generally fall into two categories: money—in this case, your agent's commission—and contract terms. Be prepared to compromise: In a successful negotiation, all parties come away believing that they've struck a good deal.

Negotiating Fees A typical fee is 6% of your selling price but can vary from 4% to 10% depending on area, market, and even an agent's track record. Brokers follow local standards when setting their percentage, but they are not legally allowed to set fees. So the good news is, yes, there is room for negotiation. Below are some examples of strong negotiating points.

An agent may accept a reduced commission if:

• You're in a seller's market (there are more buyers than houses available), your house is in mint condition, and your location is to die for. Don't even think about not negotiating. Ask for a 1% fee reduction.
• Your agent has a buyer before you list. Not only does (s)he save splitting the commission with another broker, but time and money are saved on showings, open houses and promotions.
  
• Your house sells within the first week of being listed, sparing your agent time and money.
  
• He or she represents both you and the buyer (acting as a "dual agent") or represents only you but produces the buyer. In these cases, the commission isn't shared with a buyer's agent (who normally receives at least one-half of the selling agent's fee). In a dual-agent scenario, try negotiating for a 2% lower fee; if your agent produces the buyer, ask for a 1% reduction.
  
• The buyer is introduced by a firm colleague, in which case your agent will be spared the firm's portion of the commission.
  
• You're close to a sale, but the buyer won't—or can't—meet you halfway. Real estate writer Ilyce Glink, in her book 100 Questions Every Home Seller Should Ask, suggests asking your listing agent and the buyer's agent if they'll offer some of their commission to seal the deal. Expect resistance, but it isn't futile.

Continued article on Negotiating with Your Listing Agent part 2