Regardless if you are getting a condominium or bungalow house for sale, expect to pay a hefty amount for the commission. At present, gone are the days when having your property for sale meant only having an absolute choice between paying for a set 6% commission to your real estate agent who facilitated the house or apartment for sale or going with selling the property in a do-it-yourself approach with a Home for Sale by Owner sign on the front yard. In this modern day and age, there are a whole lot of choices that fall somewhere in between, including dealing down your agent’s cut, paying a la carte for the services you require, and of course having your property for rent or sale included in local or online auction property events. The question is, where should you go with to get your property sold? Should you try to sell it by yourself and suffer the consequences and complexities? Or perhaps employ a real estate agent?
The commission you pay your real estate agent serves as somewhat the service charges for your agent when the property you are trying to sell is sold due to his/her efforts of advertising and exposing your property. It is paid immediately after the time of closing and is reliant on a flat charge rate or a percentage of the property’s sales price. After the commission has been negotiated upon, it is then broken into portions and released for payout. The agency that you employed will also be receiving a portion of it and that amount is divided between the agency and the agent that you hired on a percentage basis that may vary from one agency to another. This system will go the same with the person who represented the buyer. If the agent works for him/herself and embodies both parties in the negotiation process, he/she will be able to keep the entire commission. However, this does not happen in most cases. The commission is the only expense to the homeowner by the Realtor unless the homeowner and seller will deal with the others.
Commissions vary immensely in cost from flat fees beginning at about $600 to as high as 7% of the total amount of the house for rent or sale price for residential properties and are usually heftier for rural facilities. Usually, the service you get correlates with the amount that you will be charged with. In most cases, full service is employed to sell a house or an apartment for rent. Here are some of the things you should be able to address prior signing up with the listing agreement.
First, make sure all the charges are disclosed. Ask this question to yourself, aside from the commissions; are there any requirements for you to pay to compensate for any of the advertisement expenses or a transaction charge?
Second, the amount you pay in commission should mirror the extent of the marketing you receive. Remember, no buyer ever purchased a property just because of the sign’s name displayed on your backyard. Individuals purchase a property for their location, price, marketing and the housing condition. If all other aspects are equal, you shouldn’t pay one firm more than what you pay another for retailing your property. Click here to learn how buy and sell property.