Commissions are negotiable. Offer the agent less. Remember that a commission is split between seller's agent and buyer's agent. An their offices get a part of it too, unless they are brokers and work alone. So that 20K is 10K per agent, less the office cut for expenses. Maybe offer 1% to the listing agent and 2% to the buyer's agent? Discuss it with the agent. You'll see some flexibility. But I do believe that having a good agent on your side is very valuable to you.

Since you have experience as a FSBO and already have a lawyer to help you and the market is red hot, why not go ahead and sell by FSBO rather than negotiate with a realtor further?

Negotiate. Offer less, particularly if you're planning on using that same agent to buy your next place. The biggest problem with selling without an agent is that you're likely to only get offers from people who are buying without an agent, so you're immediately dropping your number of potential buyers. That's fine if you already have some interest from friends or neighbours, but if you're looking to attract more people, that might be a issue.

I presume you mean that real estate fees are 5%, not that 5% is the commission just to your agent i.e. 2.5% to your agent, and 2.5% to the sellers agent?

FWIW, I just sold in a pretty hot market with limited inventory, and my agent took 1% commission on my sale (and got her 2.5% commission on my purchase).

So, try and sell it yourself. If you have done it in the past, do it again.

Real estate agents “need to make a living” is an interesting comment.

Your agent is a member of a professional organization which demands a standard of education.

To prepare, there is a period of training. (no salary, yet), where the agent learns all the skills to perform (as your agent), while following strict codes of conduct.

I think 5% commission is fair, and once divided among the professionals involved, does not provide a windfall. Don’t forget, they haven’t paid taxes on the cut.

If you think it's such an easy job and not worthy of the fee, then FSBO. If you'd rather not do the work of photos, marketing, listing, fielding offers, communicating, etc., then hire the realtor. The work doesn't change all that much in a hot market, it just happens more quickly.

I'm a retired property appraiser. Here is my take on the issue. Of course you can try to sell it as a FSBO. You will probably be successful in selling the property for less than the market. Most people aren't successful as FSBO and eventually end up listing with a realtor. If you are ready to move, I'd find a good realtor.

It may look as if your realtor is not doing much to earn their commission in a hot market, but this is the very time you need them. If you don't use a realtor, you will miss out on the invaluable exposure of the MLS. This is where the serious buyers and their agents will be doing business. You have lost 99% of the market with that one decision to FSBO. Even a Zillow listing can't provide you with this kind of exposure.

The realtor is going to stage the home and have pictures taken. They will prepare the marketing listing. They are going to help you determine your selling strategy based on your local market conditions. Most of us have never lived or sold a property in an area where multiple offers rain from the sky. If there are bidding wars breaking out in your area, you will need guidance as to how to properly set up a viewing and bidding protocol. Then, bids will need to be accepted, reviewed and prioritized. That will take some expertise to determine the final best-qualified buyer and backup buyer. All the other services that the realtor provides as a standard sale will then resume.

What about commission? For your information, it is an anti-trust violation for a broker to try to fix a commission. The lowest sales commission that I have ever personally gotten was 4.5% percent. 3% went to the agent/broker bringing the buyer. 1.5% went to the sales agent/broker. The agent was the #1 listing agent in Texas at the time. The house was in a cookie cutter subdivision with no outstanding issues or features. She warned us at the outset that we wouldn't see her again until the closing. She had a sales team that would handle appointments and after-showing reviews. She had a system, it worked and we were under contract within 10 days in a slow market. She knew the business and made her money by volume. We had been trying to sell FSBO for six months at that point. Did she do much? Not really. Was she worth it? Yes. She got the job done in a satisfactory manner.

This top agent told us that she had an extraordinary contract with her broker due to her high volume that most realtors wouldn't get. 5% Is a good commission for most sellers. I would let every realtor I interviewed know that you have already negotiated a 5% commission, can they do better? I doubt it. Find a good, experienced, successful, full-time realtor, pay them 5% and be done with it.

"Your agent is a member of a professional organization which demands a standard of education."

Well I'm done laughing here but a 9th grade dropout can be a realtor. Two weekend classes at pro source and passing a simple test and you're a realtor, not exactly impressive or educated.

If you have Redfin in your area you can see the Buyer's brokers commission on each listing to give you an idea of your market. I see a range of 2% to 2.5% in my area.

Well, Kevin9408, I am sure you have provided a realtor reading your comment a good laugh.

You should consider taking those easy weekend courses. You might learn something..like strong interpersonal skills.

Here in Missouri Kevin9408 is correct. It only takes 72 hours of study and passing a test to receive you license. All states have different rules so what is in your state is not necessarily what all states and regions do.

Link: How To Get A Real Estate License in Missouri In 5 Steps (theceshop.com)

Washington

Link: WA State Licensing (DOL) Official Site: How to get your real estate broker's license

Lot different in Ontario, Canada.

There's even a pre-exam testing your reading, writing, and arithmetic skills before you can enroll in the courses.

FWIW, I was a salesperson, then a broker for ten years. Then so allergic to pets I ended up doing my last sale--for a friend's purchase--wearing a respirator!

*****

North of the 54th, all real estate commissions and legal fees are subject to a sales tax.

If a signback we're now in is accepted, we'll be paying C$13,988 in the so-called Harmonized Sales Tax of 13% which applies in Ontario. (The sales tax ranges from 5% to 15%, depending on the Province.)

I've been paying a 4% commission--1.5% to the listing agent, 2.5% to the selling agent. The listing agents have made that split themselves to ensure the selling agents receive the "standard" fee in the most common arrangement. We are a multiple repeat client.

There are some options to reduce those commission fees. One thing you could try is negotiating with your agent to see if they would be willing to lower their rate. Another option is to consider a discount brokerage, which can offer lower commission rates in exchange for fewer services.