You may have heard of realtor commissions, but if you’re buying or selling a house you may be wondering, what are they and what do they cover?
Keep reading to get the inside scoop.
Realtor Commissions Explained
It may come as a surprise to you that a buyer or seller could actually have to pay a realtor commission to sell or buy a house. That’s because most sellers get to choose the realtor that does their deal, while buyers often have a choice of realtors as well. It’s a good thing, too, as you can choose the realtor you feel most comfortable working with. Also, you can go even further to ensure you get the best deal possible on the price of your home by asking to pay for a realtor commission up front. Typically the seller will pay the commission for both their realtor as well as the realtor of the buyer. When you pay for a commission up front, it guarantees you a full commission on the sale.
Commissions and the Cost of Selling
A real estate broker’s commission is the money a real estate agent charges a buyer or seller for their services. The commission a real estate agent charges differs from state to state, but generally, your broker’s commission is in addition to the purchase price of a home. For example, if you buy a house for $300,000, then the agent will charge $1,000 to sell it. In many states the state real estate board sets the state rules for real estate commissions.
Commissions and Buying
Buying a house can be incredibly complicated. No matter how much experience you have, it’s possible for things to go wrong and sales agents will often step in and lend their expertise to help you if you are going to buy. This is because you will want to ensure that there is no delay between you finding a property and closing. Also, if something needs doing, that’s normally the chance for an agent to make extra money on the sale, because you are paying them to do the job for you. So, all in all, they make a big contribution to the sales process. They cover costs When you are buying a house, the fees that are paid to your agent go towards covering expenses, some of which you are going to have to pay yourself.
Let Local Home Buyers Help
When selling your home it can be hard to keep track of all the associated miscellaneous costs and fees. If you don’t want to go through the hassle of paying realtor commissions, we don’t blame you. Make the process of selling your home simple and contact Local Home Buyers today, we buy houses in Madison County, Alabama, in any condition fast and in cash, without all the ridiculous fees. Reach out to get your written no-obligation offer, and you could have cash in hand for your home in as little as seven days.