3% to 3.8% List side based on sale price
PLUS… $395 fixed commission
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YOUR HOME CAN BE SOLD AS-IS. NO REPAIRS, NO OCCUPANCY INSPECTION AND CLOSE IN 2-3 WEEKS.
If you desire to sell as-is for a property in need of repairs, listing with a Realtor will often net you more proceeds than selling directly to an investor. DON’T make this mistake, call me. Cash investors advertise buying your home with no inspections, commissions, repairs or closing costs, and with a quick closing. MOST OFTEN, THEIR OFFER WILL BE LESS than your net after paying a Realtor’s commission. I can also sell your property completely as-is and quick. Listing your home can attract several cash as-is buyers rather than accepting an offer given to you directly from one investor. Share your investor’s offer price with me and I will let you know if we can sell for more. Give me a few weeks. If not sold, you can then accept the investor’s offer.
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COMMISSIONS ARE NEGOTIABLE
I strive to charge all clients the same rate; this is fair. Call to discuss if not agreeable my rates below; I don’t want to lose business over commission. Choosing a broker with the lowest commission does not always net you more money. The amount saved can easily be lost during negotiations using an inexperienced agent. I represented a seller who was eager to accept his first offer. I suggested a $3000 counter; and we got it! I’ve negotiated over 1700 sales. You want an experienced negotiator representing you. There are other benefits to working with an experienced Realtor. I once saved a seller over $4000 by calling my roofer to beat the bid they got.
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LISTING BROKER COMMISSION
The listing commission is typically higher than compenstaion to the buyer’s agent. This is due to the expenses the listing broker has for marketing your property, which includes internet marketing, signage and brochures. Minimum list side commission is $1925 for properties under $50,000.
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BUYER AGENT COMMISSION
The buyer signs an agreement with their agent stating a commission rate charged for their services. The buyer will write this percentage into their offer, which can range from 2.5% to 3%. If seller counters commission paid to their agent, the buyer would then have to pay the difference.
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List side If buyer side is Total Commission
$50,000 to $125,000 3.8% 2.7% or 3% 6.5% or 6.8%
$125,001 to $200,000 3.55% 2.7% 6.25%
$200,001 to $400,000 3.3% 2.7% 6%
$400,001 to $600,000 3% 2.5% or 2.7% 5.5% or 5.7%
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While negotiable, paying all or most of the buyer’s agent commission is part of marketing your home to the buyer pool. Cash needed to purchase a $175,000 home is about $13,500 (FHA financing). Adding $4725 for their agent’s 2.7% commission would bring the total needed to $17,775. Some buyers might not have additional funds needed if the seller just reduces their agent’s commission and may need to consider a different home. Seller could instead simply counter the sale price to increase proceeds, which would then not greatly affect buyer’s cost to close.
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Selling your home using a realtor nets you 16% higher than selling For Sale By Owner. Based on research conducted by the National Association of Realtors and published in the New York Times on Jan 5, 2005, using a realtor nets you 16% higher than selling by owner. So, hiring a realtor for 5.5% to 6.5% is a good investment. A Realtor with a large company utilizing their advertising dollars and resources, will get your home market exposure a hundred-fold more than what you could do on your own, thus resulting in a larger buyer pool and a quicker sale. An experienced Realtor also knows how to resolve legal issues to protect you after your sale. Realtors provide an important service to the community.
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Steve Studnicki / Call or text 314-616-5892 / Coldwell Banker Realty – Gundaker / {click here to email me}
