You want to sell your house and you’re looking forward to putting some money in your pocket. But did you realize that selling your house may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus paid to 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
An agent serves as a salesperson dedicated to finding a suitable buyer for your house. Their primary goal is to market your property effectively, and they employ various strategies such as listing your house in a prominent service and employing diverse marketing techniques to attract potential buyers.
As part of their services, agents charge certain fees. These fees typically encompass a commission, which is the highest cost you will encounter, calculated as a percentage of the final sale price. Typically, this commission amounts to approximately 6% of the house’s selling price, equivalent to around $6,000 for a $100,000 property. Additionally, there may be other fees associated with selling your house, including advertising expenses, costs related to listing your house, fees payable to the agent’s brokerage, expenses for placing a sign in front of your property, or charges for the involvement of a title company. The list of potential fees can be extensive and diverse.
To gain clarity regarding these fees, it is advisable to discuss them with your agent. They should provide you with detailed information about the costs involved and answer any queries you may have.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
One aspect that often surprises house sellers is that, in the case of working with investors, there are typically no fees to cover. Unlike traditional agents, investors usually take care of all the expenses associated with the selling process. This means you won’t have to worry about paying commissions since investors don’t operate as agents and don’t list your house on the market.
While closing costs may still be a consideration, the responsibility for covering these costs can vary depending on the investor. It’s important to communicate with the investor directly and inquire about who will be responsible for paying the closing costs. By clarifying this aspect, you can better understand the financial implications of the transaction.
The One “Fee” You May Not Be Thinking Of
There is another cost to consider that may not immediately come to mind. When working with an agent, they often recommend making repairs or improvements to your house to increase its market appeal. Additionally, during the time it takes for the agent to find a buyer, you will be responsible for ongoing bills and taxes. Although these expenses are not directly paid to the agent, they are costs that arise as a result of working with an agent. However, when selling your house to an investor, they typically offer a quick purchase, allowing you to save on these ongoing costs.
The choice between working with an agent or selling to an investor depends on your willingness to pay for these expenses and how quickly you need to sell your house. If you would like a more detailed discussion or confirmation that we do not charge any fees when purchasing your house, please feel free to reach out to us. We would be more than happy to provide further clarification and guide you through the process.