If you’re planning to put your home on the market, the most natural way to sell it would be to contact a real estate agent. These agents are paid for their efforts through commissions based on the property’s selling price percentage. Most real estate agents are paid around 5% to 6% of the home sale price. But you can sell your home without working with a realtor. Read on to learn more about things you must know about realtor commissions:
Who Pays The Realtor’s Commission?
It’s usually the seller’s responsibility to pay the real estate agent’s commission. While buyers don’t pay commissions directly, they must still pay for the agent’s service. You must also pay the listing agent and the brokerage firms of both seller and buyer. This is because licensed agents must work for a brokerage, ensuring these brokerages make money. Usually, commissions are split 50-50 between the buying and listing agents, who then must split their share with the brokerage firm.
Can You Negotiate A Lower Commission
Home prices largely depend on real estate commissions. While you may argue with an agent about his fees, there’s little you can do to lower the price. A recent survey found that nearly 73% of agents refuse to compromise on their commission. But there are a few ways wherein you can negotiate a deal. Some homeowners offer to pay for the marketing exclusively, while others promise to help the agent find a new home to sell. You could also allow them extra free time for open houses.
How To Avoid Paying A Real Estate Investor
Consider working with a discount agent, i.e., a professional who may not list your home on the MLS but charge out of pocket for their services. Some flat agents are happy to help you sell the house, but for a fixed amount.
You could also consider an FSBO, i.e., for sale by the owner wherein the homeowner is his own agent and saves money on the agent commission. But an FSBO is not easy – it is time-consuming and requires plenty of homework.
Or, you could sell the house to a cash home buyer. They are real estate investors who buy homes for cash. They specialize in buying distressed homes, i.e., properties that need repairs or homeowners who need to sell their homes asap. Since these investors are direct buyers, you can save on commissions and restorations.
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