Savvy Ways to Save on Real Estate Fees When Selling your Home
Reduced prices have become a reality for many sellers, but even so there are some
ways you can slash real estate fees when selling your home and still be able to keep more money
in your pocket. One of the most important things sellers today must understand about the current
market is the importance of appropriately pricing their home. Price it too low and buyers will
wonder what's wrong with it. Price it too high and they'll steer away from it as well. Although
hitting the right price is important, sellers also need to focus less on the price they ask for
their home and look more at the net profit they receive when selling.
Most home sellers pay real estate commissions to agents that are involved in both
sides of the real estate transaction. Although real estate commissions do vary according to location
and agency, in most cases they range between 5% and 6% of the total sales price. This means that most
offices usually earn about 2.5% of the sale once the commission is split. If the agent must split the
commission for their side of the deal with the office or broker, which is common, they earn even less.
One of the best methods sellers can save on real estate fees and retain more of the
profit when their home sales is to find ways in which they can pay less in fees.
realtor's commission is one way to do this. Ideally, it is always a good idea for sellers to interview a minimum
of three real estate agents before making a decision. Don't shy away from asking about discounts on the
commission when interviewing prospective agents. Keep in mind that some agents will be agreeable to the
idea while others will not. Whether they are agreeable to a reduced commission can depend upon how quickly
they think your home may sell and also the price range of the home.
Another option that can allow you to save on real estate fees when selling your home is
to work with what is known as a reduced-fee agent. There are now many brokerages that have opened that
charged lower fees for sellers while keeping a buyer's agent commission in place. Overall, this can save
sellers about 25% of the typical overall commission. When your home does sell, this can potentially save
you hundreds of dollars; if not more in commission fees. At the same time, you are still able to benefit
from the full range of services offered by having an agent represent your home.
You can also save on real estate fees by negotiating a flat-fee listing with the agent in
advance. A flat-fee listing service allows you to have your home listed in the
Multiple Listing Service or MLS.
This will provide exposure for your home to other realtors in the area. Beyond the fee that you pay for
the flat-fee service, which might be a few hundred dollars, the only other fee you would need to pay would be
that of the commission for the buyer's agent.
Of course, if you really want to save on real estate fees when selling your home would be to
sell it on your own without a real estate agent. Known as
For Sale by Owner or FSBO, this is an option that
many sellers first consider when they decide to put their home on the market. Keep in mind that when you do
sell your home without an agent, you will be responsible for obtaining all of your own marketing items as well
as the advertising and showing the home; all of which can involve some expense. You can always take advantage
of different services to assist you, such as a flat-fee MLS listing. Remember as well that if you end up selling
the home with the assistance of a buyer's agent, you will be responsible for paying the commission to that agent.
Even so, if you do not mind handling the advertising and marketing for your home and you have the time to show it
to prospective buyers, this can be a good way to save a lot in fees.
Ultimately, it is important to make sure you carefully choose the way in which you will sell
your home so that you can save the most money possible while still receiving the services you need. Saving money
is important, but not if it means that your home sits on the market for months on end.