What’s your price? Everyone has one, even the real estate agent you’re about to hire. There’s a simple, and not so simple answer when you’re trying to discover how much do realtors charge. A real estate agent’s fee is a percentage of your home sale. The National Association of Realtors reports the typical commission for selling your home is 6%, which will be split 50/50 with the buyer’s agent. However, it’s important to know that a real estate agent’s fee is negotiable, which means your agent may charge slightly less than 6%, or more, depending on what you negotiate.
6% seems like a lot
“Six percent seems pretty high for a realtor’s commission. My agent’s just going to put my house on the Internet, right?”
If all your agent does is list your home for sale on the Internet, you’re right, 6% commission is entirely too much. But, if you shop around, interview and find the best real estate agent, you’ll discover that the fee is minimal compared to the amount of work your agent will put into selling your home fast at the best price possible.
What am I paying for?
A good real estate agent will put together a detailed, specific marketing plan for your home. From entering the house into the local MLS, promoting your home through different property search websites, direct mail flyers and networking with professionals in the industry, a qualified agent can market to countless potential buyers who you couldn’t otherwise reach.
Your real estate agent may also use paid advertisement to promote your home. Whether through pay-per-click ads on third party websites, spots in the local newspaper or real estate magazine, your agent will use a portion of their future commission fee to advertise your house for sale.
Another way great agents market your property is through open house events. The time spent planning the open house, promoting the event and networking the details to other real estate agents should all be considered when you’re negotiating a commission fee with your agent.
Perhaps one of the most important services you’re commission pays for is the agent’s representation during the negotiation process. From working to get the best price for your home to handling unforeseen contingencies during the closing process, your agent speaks on your behalf and fights for you to get the best possible deal.
Offers a lower commission
You’ve hear the phrase, “You get what you pay for,” right? The same is true for your real estate agent. While it may seem like a great deal when an agent offers to sell your home for less than most other agents, beware, the unbeatable offer may be a sign of lack of experience or skill.
When a real estate agent is good at what they do, whether it’s representing the buyer or seller, there’s no reason for them to take lesser pay for quality skill and intelligence. Strong marketing and negotiation skills are worth the fee.
While you’re searching for the real estate agent who you believe will sell your home fast for the best price, keep in mind that the commission is negotiable. Have an open conversation about the agent’s fee and ask them why they charge what they charge. You may find that the services they offer are actually worth far more than 6%, and you’re the one getting a great deal!