“Is the Commission Negotiable?”
PAYING YOUR REAL ESTATE AGENT
Probably one of the most common questions real estate agents get, and quite frankly a legit question, too.
Before negotiating your agents commission, let’s first understand how agents get paid:
The standard commission on a real estate transaction in Israel is 2% + VAT, and one month’s worth of rent + VAT on a rental. Real estate agents work solely on commissions, and they ONLY get paid for successfully closing a deal. Their commission is paid at the end of the process, (on the day of signing), which on it’s own, mean they can go on working on a listing or a client for a couple of months with no income.
Every real estate agent does business differently, and I most certainly cannot speak for everyone else, however here are some tips to take into account when bringing this question up with your agent:
Some real estate agents will agree to a fee reduction right off the bat, while others may discuss it. Nobody will feel upset if you bring it up, but if you want a highly motivated, professional agent to work hard for you, then be polite and professional about it (as this is what agents do for a living). If you do bring it up, then discuss this early on in the process to keep the option open to re discuss their fee again the closer the deal comes to an end.
No matter what, be fair! Don’t cut their commission off by half and most certainly don’t condition their commission based on the price of the sale. Real estate agents are hard working professionals and there’s a lot they do behind the scenes, that you may not be aware of. Nobody likes to find out that their pay just got cut off in half after all their hard work.
Food for thought.
In Summary: There’s a lot to take into account whether selling or buying in Tel Aviv. Real estate agents can make or break your deal, and you owe it to yourself and to your financial future to understand how agents work in order to seal a deal through. Finding just the right one for the job may require some homework, but nonetheless, working with a real estate agent offers a long list of benefits for you, in the long haul.