How Much Does A Realtor Cost?
You have the internet, hundreds of sites, newspapers full of agents claiming to be experts with a lot of credentials behind their name that you assume mean something. You are open to advice but would like to feel things out on your own until you need help…
Who knows? Maybe you won’t. If you do, it won’t take you long to find someone to knock your door down looking to do business with you. The question you have is, “how much will using this real estate expert cost you?”
If You Are A Buyer…
If you are purchasing a home most agents cost little to nothing. How? Agents are usually being paid by the seller (bank, builder, owner, etc) to bring a buyer. Some brokerages charge a brokerage fee of a couple hundred dollars.. but if they are good at what they do.. It is well worth it.
Beware of agents that stink at their job! In other words, you do all of the work and they show up to collect a pay check. Maybe you chose them because they give you part of their commission in the end. While this can be appealing, it often means they have little to offer professionally. A great agent is well worth what they are paid if they assist you in finding a great area, home, or issues you wouldn’t have discovered on your own. This in the end will save you thousands.
If You Are A Seller…
Though their is no “standard” commission rate… rates usually range around 5-6%. Around half of this is often paid to the buyers brokerage. Very few sellers attempt to sell their homes on their own due to the low success rate of doing so and all of the work involved. Since a high percentage of buyers are represented by agents, most “for sale by owner properties” still pay around a 3% commission rate. Therefore, all a good real estate professional must do is sell a home for 2-3% more than a seller could do on their own. This can be fairly easy since agents offer much more exposure for the property.
Again, there are discount brokerages for those searching to save. My only encouragment would be to make sure you are not getting discount services along with your discounted price. I have also seen those who charge more and do less. This is why it is important to interview more than one agent.
Summary
Always have a buyers agent representing YOUR BEST INTEREST. A kick back from a bad agent could cost you more than it is worth in the long run.
Interview more than one agent. Some expensive agents stink, some discount agents don’t offer anything. Beware of the family referral or co-workers relative. Selling your home is not about keeping your co-worker or cousin happy… It is about getting a job done correctly the first time.
Also Read…
Top 10 Signs You Need A New Real Estate Agent
photo- flkr- alancleaver 2000
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Speaking of “bad” agents, can a buyer terminate/cancel an Exclusive Buyer’s Agreement without future ramifications?
Hi Lucy
Great question. It would depend upon the terms of the agreement. While my hands are tied on giving legal advice I would find it very interesting to find a brokerage who would force you to stay in the contract if you no longer wanted to work with them, unless you were already under contract to purchase a home.
jon
we always need our job done. yes its really important about the cost. and choosing one who is more dynamic is really important