So you’ve decided to sell your home. Along with getting it cleaned up and ready to go on the market, there is the business of choosing a REALTOR® and then there is the dreaded commission fees.
Well, that’s what you may think, anyway.
So what is the real deal with commission fees when it comes to selling your home? We’ve got the skinny for you.
What commission fees cover
There are many expenses with listing a home: staging, photography, signage, advertising, marketing, mailings, open houses, etc. Your agent/broker covers the expense of all of these tools used to gain the maximum exposure for your listed home.
There is also a lot of paperwork to go through; a simple cash offer has a Purchase Agreement of at least 17 pages (with some more than hundred pages long!) Most people aren’t equipped to sift through all of this; this is where your agent comes in. You’ll be happy to have them on hand to make sure all the fine print is read and forms filled out accordingly.
The commission fee is not something that is paid 100% to your agent, either. Commissions are split with brokerages (the financial institutions that facilitate the sale of your home) and the agents. These splits can depend on the brokerage and agent and is something you can ask about during your agent selection or home selling process.
How much will it cost you?
Commission fees are only relevant on the listing/selling side of the home process. As a buyer, you do not pay commissions. All commissions are negotiable on the sell side with the average at about 6% in our market.
Investing in the sale of your home
The great thing about using a REALTOR® is that they have other agents and required certification updates that allow them to be your expert when it comes to changes, regulations and all the paperwork necessary to sell your home.
Think about it: You are good at what you do in your line of work because you do it every day and have been trained accordingly. You are an expert. This is true of a REALTOR®. They are in the industry learning, seeking, showing, educating, informing every day; they are the experts. If situations arise, agents have resources, options and vendors that they can recommend to help you navigate through the issue and help guide the process to a smooth closing.
While you as the homeowner always has the final say on a listing price (or an offer price), your agent can provide facts, details and statistics to show you the comparable activity for that neighborhood or home style. REALTORS® are also excellent negotiators helping to obtain that best possible situation for their clients.
You can buy or sell a home on your own, but with the nuances associated with residential real estate transactions today – having an agent can make a huge difference and one you will be happy to pay for!