In this article, we’ll use an example commission of 6% and a home value of $400,000 to work through the costs associated with selling your home.
Using those numbers, hiring a realtor would cost you approximately $12,000 to each real estate agent in the transaction or $24,000 total.
There’s a common misconception in real estate that selling your home by yourself will save you money. While you may not have to pay commission, there are many fees and costs associated with selling your home that will be higher without professional help, often totaling more than you would’ve paid a real estate agent to sell your home.
Real estate commission is a hot topic when it comes time to sell your home and buy a new one. “Who is responsible for paying the real estate agent?” And “How much should I expect to pay a realtor?” are common questions that come up in the buying and selling process.
Little things make a big difference, and it’s important to look at the numbers when making the important decision to sell your home on your own or hire the help of a local professional real estate agent.
In many markets, homes that are listed for sale by owner sell for 7-9% less than homes listed for sale by a real estate agent. That means selling your home for $28,000 to $36,000 less than its true market value. A bigger loss than the $24,000 you’d pay in real estate fees to work with a realtor.
Working with a real estate agent who includes professional photography and staging in their listing package can net you an additional 4-7% in many real estate markets. Increasing the perceived value of your home means receiving better offers on your property and often putting more money in your pocket. Your home may then sell for $428,000, netting you more money by working with a professional.
Homes listed for sale privately often sit on the market longer than those listed with a realtor. This often means paying your mortgage and utilities for a longer period of time, potentially costing you thousands of dollars.
A realtor can help you understand the trends for days on market (how long the average home is listed before selling) in your area, and how much it can cost to carry your home for longer than you expected.
If you’re buying a new home and are already under contract, it is crucial to make sure your home sells quickly to avoid any complications with obtaining financing.
There are many other reasons to consider listing your home for sale using a professional real estate agent such
If you’re selling your home, schedule a free no-obligation consultation with a top realtor in your area here to see how much money you can save by using their service.