The new etiquette of negotiating with your real-estate agent

The Wall Street Journal quoted Tanya Monestier in a story about the new etiquette of negotiating with your real estate agent following a landmark settlement the National Association of Realtors reached over commissions. Homebuyers are responsible for negotiating their agent’s commission. This means most hopeful homebuyers will need to sign a contract with an agent even before touring a property. Realtors can’t collect more than the amount that is specified in your agreement, even if the seller is offering more, Monestier said. Some agents will try to modify contracts with buyers to try to get the full amount or to tack on other payments such as a $1,000 administrative processing fee. Don’t agree to pay those extra fees, said Monestier.