Are you thinking of selling your house? Have you considered how much it will cost to sell a house with a realtor? Here we’ll break down the typical costs associated with using a realtor to sell your home, so you can make an informed decision about whether or not using a realtor is right for you. Keep in mind that these costs can vary depending on your location and the realtor you choose, so be sure to consult with your local professionals for more accurate information.
Table Of Contents
• How Do Real Estate Agents Get Paid?
• How Much Do Real Estate Agents Make?
• What Are the Costs Associated With Selling a House?
• Selling Your House With A Realtor
➥ Pros & Cons of Selling Your House With A Realtor
• Selling The House Yourself
➥ Pros & Cons of Selling Your House Yourself
• Working With A Real Estate Investor
➥ Pros & Cons of Working With An Investor
• Want to Sell Your House Fast Without Any Fees?
How Do Real Estate Agents Get Paid?
The most common way for realtors to get paid is through a commission, which is a percentage of the final sale price of the home. For example, if your home sells for $200,000 and the commission is 6%, the realtor will earn $12,000. This amount is then split between the buyer’s and seller’s agent, so each agent would receive $6,000.
In addition to the commission, real estate agents may also charge their clients a fee for their services. This fee is typically a flat rate or an hourly rate and is in addition to the commission. For example, a realtor may charge a $500 flat fee or $50 per hour for their services. Be sure to ask your realtor about any fees they charge before signing a contract.
How Much Do Real Estate Agents Make?
While the commission split between the buyer’s and seller’s agents is typically equal, the total amount of commission earned by each agent can vary greatly. The amount of commission an agent makes is directly proportional to the sale price of the home—so, the higher the sale price, the higher the commission.
For example, let’s say you sell your home for $300,000 with a 6% commission. The total commission would be $18,000, which would be split evenly between the buyer’s and seller’s agents. If each agent earned a 3% commission, then the seller’s agent would make $9,000 and the buyer’s agent would make $9,000.
However, if you sold your home for $600,000 with the same 6% commission, the total commission would be $36,000. The seller’s agent would still earn a 3% commission, but their total earnings would be $18,000—double what they would have made on a $300,000 sale. Meanwhile, the buyer’s agent would also earn a 3% commission, but their total earnings would be $27,000.
As you can see, the amount of money an agent can make varies greatly depending on the sale price of the home. If you’re considering using a real estate agent to sell your home, it’s important to ask them about their past sales and what kind of commission they typically earn.
What Are the Costs Associated With Selling a House?
In addition to the real estate agent’s commission and fees, there are other costs associated with selling a home. These costs can vary depending on the type of home you have, its location, and the market conditions.
The most common costs include:
Home Inspection
Before listing your home for sale, it’s a good idea to have a professional home inspector check for any issues that could potentially turn off buyers or lower the selling price. Home inspection fees typically range from $200 to $600.
Appraisal
An appraisal is usually required by the lender when someone is buying a home. The appraised value of the property is used to determine how much money the borrower can qualify for. Appraisal fees typically cost between $300 and $500.
Home staging
If you want to improve your home’s chances of selling quickly, you may need to invest in some home staging. This usually involves hiring a professional to come in and make your home look its best. The cost of home staging can vary widely, but it typically starts at around $500.
Repairs and renovations
Before putting your home on the market, you may need to make some repairs or minor renovations. These costs can also vary widely, but they typically range from a few hundred dollars to a few thousand dollars.
Closing costs
When you sell your home, you will be responsible for paying the closing costs. These costs can include the real estate agent’s commission, loan origination fees, title insurance, and other miscellaneous fees. Depending on your location, these costs can range from 2% to 5% of the sale price of your home.
Selling Your House With A Realtor
As you can see, selling your house with realtor comes with a lot of potential costs. However, working with a realtor can also help you sell your home faster and for a higher price. If you’re considering selling your home, be sure to consult with a local real estate agent to get the most accurate estimate of what it will cost to sell your house.
If you can’t afford to pay the costs associated with selling your house, you may want to consider other options such as selling your home yourself or working with a real estate investor.
Selling your home yourself can be a lot of work, but it can save you money on commissions and fees. If you decide to go this route, be sure to educate yourself on the process and familiarize yourself with your local real estate market.
Working with a real estate investor is another option that can help you sell your house fast and for cash. Real estate investors typically buy houses as-is, so you won’t have to make any repairs or renovations. And because they’re buying with cash, you won’t have to worry about financing fell through or other common issues that can delay or kill a sale.
If you need to sell your house fast and don’t have the time or money to pay for repairs or renovations, working with a real estate investor may be the best option for you.
Pros of Selling Your House With A Realtor
The biggest pro of selling your house with a realtor is that they can help you sell your home faster. They also have the experience and knowledge to handle all of the paperwork and negotiations that are involved in selling a home.
Another big pro is that realtors can help you get a higher price for your home. Because they have access to the Multiple Listing Service (MLS), they can market your home to a wider audience of potential buyers. And because they’re experienced negotiators, they can often get buyers to pay closer to your asking price.
Cons of Selling Your House With A Realtor
The biggest con of selling your house with a realtor is the cost. As we mentioned earlier, you’ll typically have to pay a commission of 2-5% of the sale price of your home.
Another potential con is that it can take longer to sell your home with a realtor. This is because you’ll have to go through the process of listing your home, showing it to potential buyers, and waiting for an offer. If you’re in a hurry to sell your house, this may not be the best option for you.
Selling The House Yourself
Selling your house by yourself, also known as For Sale By Owner (FSBO), is a great way to save money on real estate commissions and fees. However, selling your house without the help of a realtor can be a lot of work.
Before you decide to sell your house yourself, you should consider the pros and cons.
Pros of Selling Your House Yourself
The biggest pro of selling your house yourself is that you will save money on real estate commissions and fees. The typical real estate commission is 6%, which means you would save $6,000 on a $100,000 home sale.
Another advantage of FSBO is that you will have complete control over the sale of your home. You will be able to set your own asking price, show your home on your own schedule, and negotiate directly with buyers.
Cons of Selling Your House Yourself
The biggest con of selling your house yourself is that it can be a lot of work. You will be responsible for everything from marketing your home to negotiating with buyers. And if you’re not familiar with the real estate market in your area, it can be difficult to price your home correctly.
If you’re not prepared to do a lot of work, selling your house yourself may not be the best option for you. You may be better off working with a real estate agent who can handle all of the details for you.
Working With A Real Estate Investor
If you need to sell your house fast and don’t have the time or money to make repairs or renovations, working with a real estate investor may be the best option for you. Real estate investors typically buy houses as-is, so you won’t have to worry about making any repairs or renovations. And because they’re buying with cash, you won’t have to worry about financing fell through or other common issues that can delay or kill a sale.
Pros of Working With An Investor
The biggest pro of working with a real estate investor is that you can sell your house fast and for cash. Real estate investors typically buy houses as-is, so you won’t have to make any repairs or renovations. And because they’re buying with cash, you won’t have to worry about financing fell through or other common issues that can delay or kill a sale.
Another advantage of working with a real estate investor is that you won’t have to pay any real estate commissions or fees.
Cons of Working With An Investor
The biggest con of working with a real estate investor is that you will usually sell your home for less than it’s worth. Real estate investors are in the business of flipping houses, so they will offer you a price that is below market value.
If you’re not in a hurry to sell your house and want to get the best price possible, working with a real estate investor may not be the best option for you. You may be better off listing your home with a real estate agent.
So, what’s the best way to sell your house? The answer depends on your individual circumstances. If you need to sell your house fast and don’t have the time or money to make repairs or renovations, working with a real estate investor may be the best option for you. However, if you’re not in a hurry to sell and want to get the best price possible, selling the house by yourself might be your pick.
Want to Sell Your House Fast Without Any Fees?
If you’re interested in working with a real estate investor to sell your house fast, we can help. We are a group of experienced investors who buy houses all over the country for any reason! Are you behind on payments? In foreclosure? Need to sell for a divorce? No problem! Want to sell your house but it needs major repairs? We buy houses as-is! We will make you a cash offer for your home, and we can close as quickly as 7 days.
To learn more about how House Fast can help you, give us a call at (214) 251 4466 or fill out our online form here. We look forward to hearing from you!
