The general mindset of every home seller is about asking the
money right away after talking with a potential buyer for a few minutes. One
major reason is that the sellers would already go for buying a home before
selling the existing ones, and hence they are generally quite worried about
proceeding with the further payments. If you, as a seller, are going through
the same scenario, slow down and think about the money that wouldn’t go into
your pocket. There are professionals who helped you in selling your property,
and they are definitely going to get paid for that. With that said, the first
question that may arise in your mind would definitely be about the cost of
selling home.
For instance, the average commission that home sellers pay
to the listing agents is 6% of the total cost of home. This amount might look
bigger but there is a good reason for this commission to be totally justified.
Real estate agent’s
commission
One big reason for the people to think about 6% commission
as something that takes away everything from the seller is that they are not
usually explained why they’re being charged this much amount.
This commission is usually divided between the brokerage of
seller’s agent and that of buyer’s. This amount is further divided when amount
is split between agents and the brokerage.
It’s worth mentioning here that most of the real estate
agents do not have income sources other than the commission hey get. They also
spend money on preparing documents and traveling without getting the money from
anyone. And if the house is not sold after that entire process, those agents do
not get any compensation for the costs spent on the case building.
Amount that sellers
pay at closing
While buyers have to pay substantially at the closing, the
sellers’ pockets do not stop getting depleted too. You can expect to pay 2% of
the total home price at closing. It can be a fixed payment which is spent in
the form of notary fees, escrow expenses and transfer taxes. The outstanding
issues like water and sewerage bills and remaining mortgage payments can cost
even more.
While many of the costs are inevitable, some costs can be
controlled if your attorney has made an effective case document.
How is it to sell
your home on your own?
While you have thought your way out in terms of saving money
by not involving a real estate agent, you’d still have to pay the buyer’s
agent’s brokerage.
According to David Nelson who is a real estate professional
with Re/Max Advantage Plus, “Since over
93% of active buyers have a real estate agent representing them, it’s the only
way to attract these agents—and thus their buyers—to even consider your home.”
Furthermore, there are a lot of costs that real estate
agents can save you. They help you with the marketing of your home, paperwork,
negotiations, legal protection, in-depth marketing knowledge, and provide
access to other services related to real estate.
In the end, they would help you save the costs that you
might not be able to save if you sell you your home on your own.
