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raditionally, sellers covered both their own agent’s commission and the buyer’s broker fee, leaving little room for negotiation. A recent legal settlement has disrupted that model, letting buyers and sellers haggle over who pays and how much.
In the Bay Area, many agents quote 2.5%–3% commissions, citing experience, market knowledge and the time required to guide clients through the buying and selling process. Brokerages often take 15%–30% of that fee, so agents are pressured to keep rates near 2.5%.
Some agents refuse to budge, but many will under the right circumstances. Here’s how buyers and sellers can strengthen their bargaining position:
Show commitment. Matt Castillo, an East Bay agent, notes that agents set fees around 2.5% because they’re uncertain whether a client will close, sometimes after a year of work. Buyers who are pre‑approved, know their budget and can demonstrate a realistic purchase plan signal to agents that they’re likely to close, making negotiation easier. Sellers who clearly express urgency reduce the risk that the agent will think the property will be pulled from the market.
Define the level of service needed. Buyers may want an agent present at every showing or only for final negotiations; sellers may already handle staging or photography. Communicating these preferences can lower the fee. Kyle Henry of Burlingame says “defining the services you need is a powerful negotiating tool.”
Price matters. For higher‑priced homes, the agent’s total payout is larger, so a lower percentage can still yield a substantial fee. Using the same agent for both selling and buying can also trigger a discount, as the agent earns two commissions.
Shop around. Knowing what competitors charge gives leverage. Stephen Brocker, senior fellow at the Consumer Policy Center, advises buyers to challenge agents who claim the seller’s payment makes the fee irrelevant. “Ask whether that puts your offer at a disadvantage if another buyer has negotiated a lower rate,” he says.
Sellers should instruct agents to keep the rate negotiable and to offer a figure half a percentage point below the buyer’s ask. Many buyer agents accept this and amend the buyer’s agreement accordingly.
