Wondering what it will cost you to sell your house?
A home seller pays their real estate broker a percentage of the home sale price, and that money is split with the buyer’s real estate broker for bringing in the buyer. Each party then pays taxes on their split and uses the remaining money for expenses to run their business and pay themselves.
Technically, there is no standard commission since service fees are negotiable. The percentage usually varies from 5-8% depending on the broker and the level of service you will receive.
It is important to compare services for the fee. There are many agents that offer limited services (or less knowledge) for a lower fee. The agents that do the most for their sellers and have the most experience and education often charge higher fees…as would be expected.
The key point to remember here is that the more experience, education and services and agent offers, the smoother your experience be. Additionally, this will net you the highest amount for your home in the least about of time on the market.
The higher sales price and fewer headaches often result in a higher NET price in your pocket. I’ll explain. If you are selling a $300,000 house and the listing commission is 6%, that’s 18k and at 5%, that’s $15k. So for $3,000 difference, if you just $5k more for your home you are already ahead financially PLUS, it’s probable you are getting better professional service.
On that note, just a reminder that commission is not the only expense related to selling your home. There will be state deed taxes, title charges, etc. There may also be assessments, city inspections and repairs.
A professional Realtor can help you sort through these. Want to see an insider look at how real estate commissions actually break down?
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Realtor.com has written articles like Who Pays the Real Estate Agent but keep in mind they write articles on a national level, not local so some items may vary from state to state.