Short Answer: Yes – Real Estate Commissions Are Negotiable

Despite what many people are told, real estate commissions are not set by law.
They are negotiable.

Yet most buyers and sellers never negotiate them.

Why?

Because they’re never taught that they can – and they don’t know how to ask without feeling awkward, uninformed, or confrontational.

This lack of education costs consumers thousands of dollars per transaction.

Why So Many People Think Commissions Aren’t Negotiable

If you’ve ever heard phrases like:

• “That’s standard.”
• “That’s just how it works.”
• “The seller pays it anyway.”
• “All agents charge the same.”

You’re not alone.

These statements are common, but they’re often misleading or incomplete.

What’s actually happening is something called information asymmetry:

• professionals understand pricing flexibility,
• consumers usually don’t.

When one side has more information, the other side overpays – even unintentionally.

What “Standard Commission” Really Means (And What It Doesn’t)

There is no legally mandated “standard” real estate commission.

When people say “standard,” they usually mean:

• what’s common in a market,
• what a brokerage prefers,
• or what an agent typically charges.

That does not mean:

• it can’t be discussed,
• it can’t be adjusted,
• or there aren’t alternatives.

Markets change.
Pricing models vary.
And commissions are a business decision, not a rule.

When Real Estate Commissions Are Easiest to Negotiate

Timing matters more than most people realize.

Commissions are typically easiest to discuss:

• before signing a buyer or listing agreement
• when interviewing multiple professionals
• when transaction value is higher
• when services offered are clearly defined

Once an agreement is signed, conversations can still happen – but they require more care and professionalism.

That’s why education before signing is so valuable.

The Biggest Mistake Consumers Make When Negotiating

The biggest mistake isn’t asking.

It’s asking without preparation.

Unprepared negotiations often sound like:

• “Can you lower your fee?”
• “Someone else said they’d do it for less.”
• “This feels expensive.”

Those approaches feel personal and emotional – and they often trigger defensiveness.

Prepared negotiations focus on:

• understanding options,
• comparing structures,
• and discussing expectations calmly.

That’s the difference between confrontation and conversation.

How to Negotiate Without Sounding “Difficult”

Most people don’t want to negotiate because they fear:

• offending the agent,
• damaging the relationship,
• or looking uninformed.

The truth?

Professionals expect educated questions.

The key is how the conversation is framed.

Effective negotiation sounds like:

• “Can you help me understand how your fee compares to other options?”
• “Are there different pricing structures available?”
• “What flexibility exists depending on the scope of work?”

This keeps the discussion professional – not personal.

What If the Agent Pushes Back?

Pushback doesn’t mean you did something wrong.

It usually means:

• the agent isn’t used to being asked,
• or they haven’t explained alternatives before.

At that point, you have options:

• ask clarifying questions,
• evaluate whether the value matches the fee,
• or explore other professionals.

Negotiation isn’t about winning – it’s about choosing knowingly.

Why Education Beats Aggressive Negotiation Every Time

The goal isn’t to “get a deal at all costs.”

The goal is to:

• understand what’s reasonable,
• understand what’s negotiable,
• and make an informed choice.

Education allows you to:

• negotiate calmly,
• avoid burning bridges,
• and save money without stress.

That’s exactly where most consumers struggle – not with willingness, but with clarity.

How CommissionCutter.ai Helps (Without Representing You)

CommissionCutter.ai is a consumer education and negotiation-training platform.

We do not act as agents.
We do not negotiate on your behalf.
We do not take commissions or referral fees.

Instead, we provide:

• education about how commissions work,
• market-based context,
• negotiation scripts and frameworks,
• and guidance so you can advocate for yourself confidently.

You stay in control.
We provide the preparation.

Final Thought: Don’t Guess What’s Fair

Real estate is often the largest financial transaction of your life.

Guessing – or assuming fees are fixed – is expensive.

Understanding your options before you sign is not aggressive.
It’s responsible.