The process of selling a home can be one of the most stressful experiences a homeowner or family can go through. Aside from having to let go of a home you have fond memories of, you also need to deal with the actual process of selling the property.
It’s no surprise then why a career in real estate can be highly lucrative—people need help selling and buying homes after all. If you’re thinking of working with a Realtor to make the process of listing your home faster and easier, here’s a quick look at what it will cost you.
Broker Fees
As much as 89 percent of homeowners worked with Realtors and real estate agents when selling their homes in 2016. Because these people work on a commission basis, they are only compensated when someone buys your home, getting paid only after closing the property. This means it is in the best interest of the Realtor or agent to work hard for you.
The usual commission is 6 percent of the home’s selling price, which is usually split between the Realtor and the buyer agent. But this is fast changing, as many sellers are using the flat-listing services offered by Realtors (more about this later). The 6 percent commission is first processed by a listing brokerage, which gives the Realtor a 60 to 90 percent cut.
Flat-Fee Listing Services
Flat-fee listing services offer the advantage of allowing homeowners to show their homes to potential buyers while still tapping the reach of Realtors. Using this service, homeowners can place their property in the Multiple Listing Service (MLS) used by Realtors. This ensures the home will be exposed to buyer agents representing homebuyers who may be interested in your property.
Aside from paying a few hundred dollars for the service, you would only need to pay for the buyer agent’s commission.
Upfront Costs
This ultimately depends on the Realtor you work with. Some will want money upfront, others will wait until closing the property. In any case, always remember that everything in real estate is negotiable.
If you are willing to sell your home at a reasonable price point, a Realtor will have no issue waiting until closing the deal with a buyer. But if the seller refuses to budge from a price that’s several thousand dollars more than what the home is really worth, the agent may ask for a retainer.
Tips on Working with a Realtor
If you’re going to work with a Realtor or listing agent, it’s imperative that you spend a few minutes looking up their history. Just as with any other professional, whether it’s a doctor, lawyer, or architect, Realtors have varying track records and specialties. If an agent has a great record of selling homes in down markets, it might be worth paying a little extra to get sell your home right away.
If you have a home you need to sell immediately and don’t have the time to look for a Realtor, sell it as is to an investor like Blue Hen Homebuyers instead. We buy all kinds of houses, regardless of their age or condition. Call our offices today at 910-802-2222 to learn more about how our services can help you.