Negotiating with Your Listing Agent part 2
Information for Sellers

Negotiating for higher fees

You may actually benefit from offering a higher commission fee or a bonus in some situations—for example, if you need to sell quickly or your home is in poor condition. If an agent has a stellar track record, tending to sell homes in days rather than weeks, it can be a worthy investment.

If you're selling in a "buyer's market," where there are more houses available than buyers, consider offering a bonus on top of your agent's commission. Their loyalty could affect whose house sells—yours or your neighbor's.

Negotiating Terms

Paying your agent at closing. If your agent performs as stipulated in the contract and brings you a buyer who is "ready, willing and able" to close at full price and with your terms, you may owe the agent's fee even if you decline the buyer's offer. To avoid paying two commissions—the second being when you do accept an offer—ask to strike this clause from the contract. Amend the contract to state that the broker will be paid by the proceeds of the sale upon closing. This protects you in case the buyer bails for any reason.

Selling to a "return customer." If your house doesn't sell during the period covered by your listing contract, but you later sell to a buyer who was found by your agent, you may still owe the agent's full commission. This post-expiration period is called the "protection period," often described as 60 to 180 days after the contract expires. Request that the protection period be 90 days or less.

Choosing a new firm or agent. If your original contract has expired, you may end up choosing a new agent or firm. If you then sell to a buyer who was shown your home by your first agent, you could end up paying a commission to both agents unless you add a protective clause to your contract.

Canceling your contract. Request the right to cancel your contract. You can make this request more palatable by offering, say, a two-week written notice to terminate if you do so for any reason. If your agent really messes up (i.e. lies, steals, cheats), you should be allowed to terminate immediately (it's called "terminating for cause"). In the latter case, you won't be liable for the commission, but you might still owe the agent for costs and possibly a penalty fee

Negotiating Tips
Start at the beginning. During your first telephone contact, ask agent candidates if their full fee is negotiable if justified by special circumstances.

Put all agreements in writing. Include every change or addition you and your agent agree upon in your contract. Enough said.

Ask questions before you sign. Ask your agent to rephrase any language in the contract you find confusing. If the agent's explanation is clearer than the contract phrasing, strike the paragraph and rewrite it in your agent's words. If you still feel like you're in over your head, consult a real estate attorney before signing.

Be confident. Etiquette has a place at every negotiating table, but there's no need to be timid. Your job is to get the best deal you can. Your agent may be resistant, but rest assured that he or she is familiar with the process. This isn't personal, it's business; and it can be fun.

Don't deal yourself out of a sale. Bargain, but within reason. A good agent will be working hard for you. If he or she ends up having to choose among house showings, you don't want to be neglected in favor of a higher-paying client.

Sally Anderson is a writer and editor based in Seattle.