You’re eager to sell your house and anticipate earning some cash from the transaction. However, have you considered that selling your house might actually entail additional expenses? In this blog post, we delve into the various fees associated with agents versus those with investors…
It’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want to you to know about the different fees you have to pay because this information may help you decide whether to work with an agent or to sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
A real estate agent functions as a sales intermediary entrusted with the responsibility of locating a suitable buyer for your property. Their strategy often entails listing your house in a directory of available properties and utilizing diverse marketing strategies to capture the interest of potential buyers.
However, engaging an agent often involves several fees. These commonly include a commission, which tends to be the most significant expense, usually around 6% of the property’s sale price (approximately $6,000 for a property valued at $100,000). Additionally, there may be supplementary fees to consider, such as advertising costs or other charges associated with the sales process. These could entail expenses for listing your property, fees payable to the agent’s brokerage, costs related to signage installation, or charges for services provided by the title company, among others. It’s advisable to discuss these fees with the agent, who should furnish you with comprehensive details.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
This particular aspect often comes as a surprise to many homeowners: when dealing with most investors, fees are typically non-existent. Investors typically cover all the expenses associated with the sale. Moreover, there’s no commission to consider because they’re not acting as agents and won’t be listing your property. However, you might still need to handle closing costs, although this varies depending on the investor, so it’s essential to inquire about who will be responsible for these expenses.
The One “Fee” You May Not Be Thinking Of
Another aspect to consider, which often goes unnoticed, is the ongoing expense associated with engaging an agent: they typically recommend property enhancements, and you’ll continue to bear expenses like bills and taxes until the agent finds a buyer. While not directly attributable to the agent, these are costs that arise due to their involvement. Conversely, selling to an investor ensures a swift process, bypassing these ongoing costs altogether.
Determining the most suitable option for your circumstances hinges on your willingness to assume financial obligations and the urgency of selling your property.
If you desire further insight into this matter or require confirmation regarding our fee arrangements for selling your house to us, please feel free to contact us. We are readily available to offer additional clarification and address any inquiries you may have.