While selling a home can seem a tedious process, real estate agents come to our rescue in the form of market knowledge and industry know-how. The real question, however, is whether realtor commission is worth the price we pay for getting our home sold faster, or at a higher rate.
Realtor fees take up to an average of 6% of the value of your home. This is typically divided between the buyer’s agent and the seller’s agent, but is usually covered by the seller. Considering that sales tax on groceries might seem insignificant, one on your house can easily ride up to a couple of tens of thousand dollars.
Real estate investors offering cash for your house are not responsible for realtor fees so you would want to consider ways in which you can avoid- or at least reduce- realtor charges.
Do Your Research
Almost everything about the real estate business is negotiable, including your agents commission. With a little research, you can find agents who charge reasonable rates, or even those who don’t work for commission at all.
Realtor commissions are sometimes directly proportional to what they bring to the table. Negotiating with them to lower their price can not only save you thousands of dollars, it also is money well spent.
Do It Yourself
Some may consider this a risky option, but if you have the right idea of the value of your house and know how real estate works, you can write up the pricing yourself – sidestepping those realtor commissions altogether.
It’s also useful to note that agent fees include more things that are not covered by their commission, like inspection, photography, staging for potential buyers and closing costs.
Settling for a Higher Asking Price
A higher selling price can help you cover the costs of your agent’s commission without having to negotiate or lower their price. So, you might want to hold out a little longer until you find a seller who is willing to pay a higher price for your home.
Look for a Plan B
You could always explore alternative options to a conventional realtor from a real estate agency, like those who work independently or those who charge a flat fee.
Buying or selling a property involves many factors, some of which we cannot account for. It’s always wise to consider the uses of hiring a realtor, and more importantly, what are you getting for your money. An understanding of this will help you decide how much you are willing to sacrifice for this.