So you’re thinking about selling your property, and are already counting the money in your account! I know that I do that. But many people don’t realize that they will actually have to PAY someone to sell their property. In this post we discuss the different fees that property sellers have to pay to sell their property….
It’s true… in most (but not every) case, you have to pay others to sell a property. These fees vary depending on who you choose to sell your property to, and hopefully by making this transparent for you, it will help you decide whether to sell to an agent vs. and investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
A real estate agent is primarily a salesperson. In order to sell the property they will market the home and take a cut of the proceeds as a commission. Sometimes they will even charge you for the marketing services to sell your home (photos, ads, fancy showings, staging, etc.).
So you’ll end up having to pay some fees to the agent. The largest fee by far is the agents commission. This fee gets taken out of your proceeds at closing, but if there aren’t enough profits, you may have to come “out of pocket” to pay the agents commission. This fee is negotiable, but 6% is pretty standard across the industry. As we mentioned there could be fees associated with the listing such as repairs that the agent does on your behalf, marketing, and making the property presentable with small gifts or staging. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. You should definitely ask the agent what all of their fees are, and they should definitely tell you.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
Many homeowners are surprised to learn that when selling to an investor there are no fees to pay. Investors will usually take care of all fees associated with selling. There is also no commission as the investor is not an agent that will be listing your property. They are the end buyers of the home. You may be responsible for closing costs (not with Green Sparrow Properties though), so be sure to check with your investor.
The One “Fee” You May Not Be Thinking Of
There’s one more “fee” or hidden cost when using an agent: when you work with an agent, they’ll get you to fix up your house and then you’ll have to pay bills and taxes for as long as it takes the agent to find a buyer. This isn’t technically a fee that you’ll see on any closing statement, but is money steadily leaving your account all the same when using the agent… yet when you sell to an investor they can usually close very fast and will do all of the repairs, saving you this money.
So how do you know what is the right route to go for you? The answer depends on how quickly you need to sell. It doesn’t hurt to speak with both an investor and agent (or someone who is both) to understand all of your options.
If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to walk you through it.