We often believe that we have to list our homes with a real estate agent, but would you believe that 63% of people listing their homes without an agent’s expertise? Why would homeowners do that? Well, they list without an agent because they don’t want to lose any money. Suppose they use the net proceeds calculator to figure out how much they could make on your home sale, a 6% could result in their profit could be tens of thousands dollars less than expected. Yikes!
Interestingly enough, if you do list your home with an agent, you’re less likely to sell your homes at a lower price because your agent would work hard to get your house sold quickly and possibly even for more money!
So if you’re thinking about selling your house on your own, read up on these key bits of information about an agent’s commission and you’ll understand why they receive a 6% commission rate.
1. They don’t get the entire 6%
It’s true that the final check is going to be 6% less than expected, your agent isn’t going to be walking away with that money. They will split that commission with the broker they’re working under (between 10 to 50%) and they’ll also split it with the buyer’s agent (usually a 50/50 split). By the time they receive their commission check, they could be walking away with a fraction of that money.
2. They bust their butt to sell your home
An important factor you should consider when you’re thinking about how to pick the perfect agent is what their marketing strategy is like. A top-selling agent should have a solid strategy that includes a variety of ways to bring the house to buyer’s attention. Some of that strategy could include holding open houses (or virtual open houses, thanks to COVID), sending out fliers or advertising in the newspapers or online groups, and network with other agents.
Not only should you think about their marketing strategy, you have to realize that they work hard doing market research, writing contracts, negotiating, and so more behind the scenes.
3. Commission rates vary depending on location
You know how it’s a general thought that every sale nets agents a 6% commission? That’s not necessarily true. In fact, commission rates average about 5.8%, but it could vary depending on where you’re trying to sell. If you’re worried about the commission rate, do a bit of research to find out the average rate in your area and you may find it’s lower than expected.
4. Agents could sell your home quickly and for more cash
Did you know that 92% of the nation is experiencing a strong seller’s market? This means that your home is likely to sell for more than asking and it may sell quicker, too! Since it’s a seller’s market, your real estate agent is likely to flex their skills so that your house will reach as many buyers as possible as quickly as possible. And, if your home has the features buyers are looking for, you may receive multiple offers – some of which could be above asking.
If you’re selling on your own, it’s likely that you’ll be inundated with the stress and you could be settling on an offer that’s lower than expected. With all of the facts laid out, do you still want to forgo the help of a real estate agent? Yes, you’re going to lose 6% of your sale, but they take care of everything. They work hard to market your house, they negotiate to get the best prices possible, and you don’t have to worry about anything. Peace of mind, in our opinion, is worth the commission rate, wouldn’t you agree?
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Hey, I’m Rory and I am the ultimate accidental geek.
Born in London I was never interested in technologies until I started a part-time job at Apple and now I can’t get enough. Join me as a help you navigate the world of tech with some of my fellow geeks.