Admit it – money plays a huge factor when considering selling your home. While selling a home can bring in some cash, not every dollar goes into your pocket.
So, how much does it cost to sell a house? Read more to find out!
The real estate agent commission explained
When selling your home, you must pay the professionals who help you through the process.
On average, home sellers pay their listing agent a commission of about 6% of the price of their home. However, this percentage can vary.
That sounds like a lot, right? If you’re thinking about your agent pocketing the whole sum, think again.
This commission percentage is split between the buyer’s agent and the seller’s agent. They may split this evenly, or the listing agent’s side might get a little more.
Then the respective brokerages take their cut from that split, which varies based on the brokerage, and the remaining goes to the agents.
It’s important to keep in mind that agents aren’t salaried.
So, that fee pays for all the time the agent spends marketing and photographing your home, putting up signage, the cost to list on multiple listing sites, and the communication between the buyers and sellers.
And if your house doesn’t sell, the agent doesn’t get reimbursed for those costs.
How much will you pay in closing costs?
While it’s true that buyers tend to pay more in closing costs, sellers aren’t entirely off the hook.
Keith Gumbinger, Vice President at Mortgage Information Resource, says that you should be prepared to spend an additional 2% of your home’s price on closing costs.
Closing costs are usually fixed. This includes the transfer of taxes, escrow expenses, and notary fees.
Also, at closing, be prepared to pay any outstanding property taxes, a prorated share of the water and sewage bills, and the remainder of your mortgage.
Is having a real estate agent necessary?
The market is hot, and many sellers may think they can sell their house themselves to avoid the commission fees.
They don’t realize that if you sell your house on your own, you still must pay the buyer’s agent’s brokerage fee.
Before cutting a real estate agent out of the picture, consider what they bring to the table:
- Marketing, signs, advertising support, and professional photography
- The time and hassle you save from not having to be present for showings, managing calls, hosting open houses, setting up legal representation for paperwork, and conducting the negotiations
- Comparing multiple offers, vetting potential buyers, and contacting their lenders
- The legal protection that comes with working with a licensed real estate agent
- The knowledge of the market that can help price your home
- Negotiating and proper documentation expertise
- A pool of potential buyers with access to other agents who may have potential buyers
- A host of vendors to assist from the inspections to repairs to local title companies and real estate attorneys
When hiring a real estate agent, you get what you pay for and earn what you save.
If you’re thinking about selling your home, think long and hard. After all, this home sale may be one of the most significant financial transactions of your life.
S&D Real Estate Services, LLC
2000 E. Edgewood Drive; Suite 103
Lakeland, FL 33803-3600