When people put their homes on the market, they’ll frequently turn to real estate agents to help with the sale of their home, however they’re often shocked to see the costs – which are frequently 6% of the final sale price. 6% is frequently the going rate for agent commissions, however, choosing the right real estate agent to represent you can easily pay for itself. Below are a few key things to consider when evaluating a realtor’s commission.
Your commission doesn’t just go to the agent selling your home
In many transactions buyers also will have a realtor to represent their interests during the home purchasing process. When this occurs, the seller’s agent will allocate a portion of their commission to the buyer’s agent. While this doesn’t impact the amount of money the seller takes in directly, this highlights the fact that an agent’s general commission isn’t as extravagant as it seems.
Commission rates can be negotiable
Much like anything else in life, you can try negotiating commissions with your realtor, however you shouldn’t be surprised if they hold firm. 73% of agents nationally say that they don’t negotiate commissions because it prevents them from getting a higher sale price for the seller.
Your commission helps cover marketing costs
In addition to covering your realtor’s compensation, the commission also covers promotional expenses such as professional photography, marketing pamphlets and flyers, automatic postings home search sites, and exclusive previews for other realtors.
Real estate agents can get you higher offers
One of the first things that real estate agents do when they begin working with a client is to assemble a comprehensive market analysis containing facts, figures, and photographs of comparable properties in your area. WIth this information in hand, the agent is able to create a pricing strategy that balances revenue with a quick sale. Compared to for sale by owner transactions, agents frequently are able to get offers that more than make up the cost of their commission.
Agents have access to exclusive resources for professionals
A secret weapon that generally is accessible only to licensed real estate agents is the MLS system which is an online platform that provides realtors access to roves of listings with only a few clicks. When a seller’s agent lists a property on an MLS, real estate agents that represent buyers can quickly pull up information and present it to their clients. It’s another channel to help you get top dollar for your home.
Making sense of it all
Now that you’ve seen a bit of what goes into an agent’s commission, we’re hoping the information helps make the value of a real estate agent apparent. When you pay an agent a 5%-6% commission, that translates to an agent that is dedicated to getting you top dollar for your home, is available and communicative, and who is willing to see the transaction through from start to finish.
When you consider how selling your home is like a full-time job, the decision to go with a professional real estate makes more sense.