You want to sell your house and are looking forward to putting money in your pocket. But do you realize that sometimes selling your house may mean you have to PAY money? In this article, we discuss breaking down the different fees paid to agents versus paid to investors.
It is true that sometimes selling your house may mean that you have to pay money out of pocket to close. While this is not always the case, it does happen more than you think. We want to help you know the different fees homeowners have to pay. This information may help you decide whether to work with an agent or to sell your house directly to an investor.
So what are the different fees paid to agents versus paid to investors?
Agent Fees
Agents are salespeople who try to find a buyer to purchase your home. They list your house and utilize many marketing tools to find a buyer.
Agents typically work on commission so part of your contract will include paying fees to the agent. Commissions are the highest amount of money you will pay the agent and often about 6% of the sale price. If your home sold for $100,000 with a 6% commission, that’s $6,000 going to the agent on the final sale. Other fees you may need to pay include advertising, costs associated with your house, a fee to list your house, a fee to the agent’s brokerage, a fee to place a sign in your front yard, a fee for the title company…and the list goes on. You should ask your agent about all the fees involved and they are required to tell you.
Investor Fees
For most investors, there are rarely any fees coming from your pocket and investors usually take care of all fees associated with selling. This is the part that surprises many house sellers. In addition, there are no commission fees to pay – they are no agents and they are not listing your house. You may be responsible for some closing costs, but it depends on the investor so be sure to ask an investor who pays for these costs.
The One Fee or Cost You May Not Be Thinking Of
There is one more fee that you may not have thought of when working with an agent. Agents want you to get your house ready to list and fix various things, and you still have to keep your bills current and are responsible for taxes as long as it takes the agent to find a buyer and close on the sale of your house. Although this is not a “fee” to the agent, these are costs you have to pay. Selling your house to an investor, however, is a quick sale that saves you all these costs out of your pocket.
So which option is right for you? Depending on how much you are willing to pay and how quickly you want to sell should help you determine which option is right for you.
If you would like to confirm there are no fees if you sell your house to us or just go over these options in more detail, contact us and we will be happy to walk you through it.