All about Commissions

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.