Can I negotiate the commission rate for my agent? I don't want to be rude or offend them. I also don't want them agree to a lower rate and then not help me to get the best price. What do you recommend? Thanks!!
Asked by Hannah O'Neil | Madison, WI| 12-07-2022| 761 views|Buying|Updated 3 years ago
Hello Ha, looks like you are asking as a buyer and wanting see if the agent will reduce their commission. If so, you will want to find out how the agent is getting compensated. Personally when representing a buyer I very rarely get compensated by the buyer at all. In general, the buyers agent will get a commission offered out by the sellers Broker. In this case, generally it is not standard practice to negotiate the commission if you are not the one paying it. If the buyers agent has an agreement with you on compensation then you can certainly ask if they would work with you on lowering their fee. Some are willing to do so, though others are not. Either way, in that case you can ask and unlikely going to be taken as rude.
Yes, but typically you may be different levels of service for varying commission rates. An agent should work for their commission so find out what they are doing for you.
Some updates on commission changes that took effect in August 2024 in Wisconsin and across the country.
Yes, commissions are negotiable. They always have been. Some agents offer different service levels at different commission rates, and some do not. Either way, this conversation should happen upfront — before you tour homes.
What changed on August 17, 2024: Agents in Wisconsin are now required to have a signed Buyer Agency Agreement before showing a home, or have the Buyer sign a Showing Agreement first. The distinction matters — a Showing Agreement allows an agent to show you a home, but they are legally working on behalf of the Seller until you formally hire them. That means no professional advice, no running comps, and no writing offers on your behalf until you sign a Buyer Agency Agreement.
On who pays the Buyer's agent: Sellers are no longer required to offer compensation to a Buyer's broker. However, Buyers can still ask the Seller to cover some or all of their agent's fee as part of the offer. In Wisconsin, the WB-11 Offer to Purchase now includes a specific line item for this — similar to asking a Seller for a home warranty, inspection credits, or other concessions.
One more thing worth noting: Wisconsin listing contracts still indicate whether a Seller is offering a co-broke, but that information may no longer appear in public marketing materials.
The bottom line: Historical home prices in Wisconsin already reflected compensation for both the listing broker and buyer's broker built into the sales price. So practically speaking, not much has changed. What matters most is working with an agent who has the experience, market knowledge, and confidence to write an aggressive offer that gets you what you want.
You absolutely can. I would ask what difference in value they would bring at the two different rates(marketing costs/strategies, professional photo options etc)