Spoiler alert – YOU pay the Realtor fees when you sell your home, but you have some options to consider!
As the seller, you’ll typically be working with a real estate agent to help market and sell your home. And part of their compensation will come in the form of a commission. This is a percentage of the final sale price that they’ll get paid. It’s negotiable, but you should expect to pay about 6% of the sale price in commissions, which is a hefty price on top of all the other closing costs and fees.
What are realtor fees and why do they exist?
Realtor fees are commissions that are paid to real estate agents for their services. They typically run about 6% of the final sale price of a home. The reason they exist is that real estate agents typically do a lot of work in order to sell a home. This includes things like marketing the home, showing it to potential buyers, and negotiating the sale.
How does a Realtor get paid?
A realtor typically gets paid by the seller of a home in the form of a commission. This is a percentage of the final sale price that is negotiated between the seller and the Realtor. At closing, the Title Company (or Attorney in some states) is responsible for creating and following a closing statement that itemizes all the fees for the entire transaction and who the responsible party is for paying each fee. They will also handle escrow funds and disbursements, or payments, to all parties including agents and Realtors.
Are there any ways to reduce or avoid paying Realtor fees?
There are a few ways to reduce or avoid paying Realtor fees when selling your home. One possible way is to try and find a real estate agent who will work for a lower commission, but that’s unlikely. You can also try and negotiate a lower commission with the agent you already have, but due to how most agents get paid by their brokerage it’s unlikely that you would be successful in paying a lower commission while still getting the top tier of service. Another way to avoid paying Realtor fees is to sell your home without an agent by using a For Sale By Owner (FSBO) service. This will likely save you the entire commission, but it’s important to be aware that selling your home without an agent comes with some risks, challenges, and quite a workload that you’ll need to be prepared for. But there is another option, which is to sell your home to a cash buyer who is also a real estate investor.
What are the advantages of selling to a real estate investor?
Selling to a real estate investor has a lot of advantages, the most obvious one being that you won’t have to pay any realtor fees because there is no agent involved in the transaction. This can save you a significant amount of money, typically around 6% of the final sale price. Another advantage is that you’ll be able to sell your home as-is, without having to make any repairs or improvements. This can save you even more money and time that would otherwise be spent on fixing up the property. Additionally, selling to an investor is usually a quicker process than going through the traditional route of listing with an agent, hosting open house showings, and waiting for a buyer to come along. Most real estate investors can close on a house, with cash, in as little as 14 days. Now, you should expect to get a lower sale price working with investors than you would on the MLS with an agent, but for the right property and seller, the advantages of no fees, no repairs, no showings, and 14 days instead of 60 to 90 far outweigh a lower sale price.