While most people realize you can haggle over a car’s price, plenty of other recurring expenses are open to discussion as well. You can negotiate a wide range of everyday bills. Businesses want to gain or retain your custom, and the wise ones will work with you to make that happen.
Below are five bills you might not have realized are negotiable, along with my suggestions for getting the most favorable terms. By applying these tactics, I estimate my household has kept at least $5,000 in our pockets over the past year.
1. Realtor Commissions
Realtor commissions can be negotiated — you don’t have to resort to selling your home yourself. The commission rate is something to address before signing any agreement. When we sold our house last year, our agent proactively offered a reduced rate without our prompting. If yours doesn’t, don’t hesitate to ask.
The standard realtor commission in many markets is around 6%. Dropping that to 5.5% or even 5% can save you thousands when you sell. Keep in mind, though, that a lower commission might mean the agent puts in less effort to market your home or negotiate the best sale price. Be sure you know what services the realtor will provide before signing anything.
When we sold our home, our final commission was 4.5% because the agent represented both seller and buyer. That percentage was written into our contract and saved us $4,500 compared with the typical 6% fee.
2. Cell Phone Plans
Affordable phone plans are everywhere now, so there’s no need to pay top dollar. My smartphone plan costs only $10 a month! Phone carriers know consumers have many alternatives, and they’ll work hard to keep your account.
Use that competition to your advantage if you prefer to stay with your current provider. Do some comparison shopping, then call your carrier and request a better rate based on the deals you found elsewhere. If you opt to switch carriers, you can usually retain your existing phone number.
3. Electric, Gas and Propane Bills
Yes — you might be able to negotiate your electricity bill. Several states offer “energy choice,” letting consumers pick a different supplier for electricity or gas. We recently changed providers and are saving $75–$100 each month on electricity.
Likewise, propane prices can differ wildly between vendors. A few phone calls to local suppliers could turn up substantial savings. If you can’t negotiate your utility bill directly, look for other straightforward ways to cut energy use.
4. Medical Bills
A hospital stay can quickly rack up a very large bill. You may qualify for an immediate discount by speaking with the hospital’s billing department — ideally before a planned admission. Some hospitals will offer a 10–20% reduction if you pay the balance up front.
Another way to avoid unnecessary costs is to seek a second opinion — you might discover a procedure isn’t required.
If paying in full up front isn’t feasible, discuss payment plans with the hospital billing office and with individual physicians’ offices. They may be willing to reduce the amount owed after insurance has paid its share. Stay organized and keep detailed records of all procedures and charges in case any overbilling occurs.
5. Mortgage Interest Rates and Fees
Mortgages are a major industry, and if your credit is strong, that gives you leverage.
The trick is to solicit multiple offers before choosing a lender. Compare both fees and interest rates. I gathered five separate quotes before selecting a lender for our recent purchase. The lender we chose even agreed to lower the application fee to win our business.
If you’re refinancing, your current lender may offer a streamlined program that reduces paperwork and extra charges.
Make your dollars work harder by negotiating wherever possible, whether it’s a one-time fee or a recurring monthly charge. Spending a few hours comparing options and negotiating bills could result in saving thousands.
Your Turn: Have you ever negotiated one of these bills?
Emily Carter is a stay-at-home mother of four energetic boys, partner to Martin, and the author of Early Bird Mom, a well-read parenting blog that covers organizing, budgeting, and family life. She enjoys helping busy parents with practical, straightforward tips. Connect with her atEarly Bird Mom.
