What Are the Estate Agent Fees for Selling a House?
You want to sell your home fast, and you know that the best way to do that is to hire a real estate agent. However, you also want to keep an eye on your budget and make sure you aren’t paying too much. Hiring a real estate agent is a smart move, but it’s also smart to understand what the estate agent fees are and how they are handled.
How Much is a Real Estate Commission?
A standard real estate commission is 5-6% of the final sale price of your home. Usually this is split between the seller’s agent and the buyer’s agent, with the seller responsible for the full commission. This commission is usually split again with the brokerage, with each agent only receiving 1.25-1.5% of the sale price.
Are There Other Fees You are Responsible For?
There may be other fees you will pay during the sale of your home. Your agent may suggest that you hire someone to stage your home. Realtors work with professional stagers who may charge a one time fee, a fee per room, or a fee per month. You may also pay for the professional home photographs that your agent suggests. Photography and staging fees can be steep initially, but almost always pay for themselves in a better sale price.
You will typically be responsible for closing costs, which are separate from the commission. Closing costs include taxes, title insurance, appraisals and inspections, lender fees, and more. You will be responsible for closing costs no matter how you sell your home.
Can You Negotiate or Save Money on Estate Agent Fees?
There is no regulation for real estate commission rates, so some agents may be willing to negotiate lower rates. If an agent represents both the buyer and the seller (dual agency), they will often lower their commission fees. However, part of the fee you pay the agent covers the marketing and other expenses involved in selling your home. If you negotiate a lower fee, you may be forfeiting the advantages using a real estate agent provides. You can let real estate agents know that you are shopping around for the best fit for your home, and many agents will give you all the information you need to make an informed decision.
What Does Your Agent Do for Their Commission?
Your real estate agent will work hard for their commission. They are able to determine how to sell your home fast. They will help you with the pricing, the listing, the staging and photographing, the advertising and marketing, the showings, and the escrow period. Their network and experience is invaluable. A real estate agent fee is a small price to pay to cover everything you will need to do to sell your home.
Does Your Agent Get Paid if Your Home Doesn’t Sell?
If your home doesn’t sell, most likely you will not be required to pay your estate agent at the end of your contracted time period. However, make sure you read the fine print. If your agent finds the buyer, you may be responsible for paying a commission, especially if the buyer was a prospect during the contract period. In addition, if you back out of the sale, you will need to pay the commission. If the buyer backs out, you may be responsible, but you can go after the buyer for breach of contract to pay those fees.
Is it Worth Using an Agent to Sell Your Home Fast?
There are some sellers who want to save money and sell their home without using a real estate agent. While this is not impossible, homeowners who attempt to sell their homes alone usually take much longer to complete the sale and will end up with a much lower sale price. If you are interested in learning how to sell your home fast and for the best price, using an agent is well worth the fees you will pay.
An estate agent may cost 5-6% of your sale price, but hiring one is often well worth it. Your home will sell faster than you could do on your own, and often at a higher price that you would be able to negotiate on your own. Understanding how much you’ll pay and what your agent will do to earn their fees will help make the right decisions when it is time to talk to an agent about selling your home. If you’re in the area, contact Amberwood Real Estate for answers to all of your home selling questions.