How Much Will A Real Estate Agent Charge To Sell Your House
With the scarcity of houses in the United Kingdom, sellers think that it is easy to sell their home. Although there are cases when you will find a buyer who is eager to buy your property, this isn’t always true for a lot of sellers. This is why they need a real estate agent.
According to Exeter estate agents Southgate Estates, a real estate agent is your main helper when it comes to putting a value on your home and selling it. Some people view real estate agents as extra cost that will eat up their profits; however, there are still a lot of advantages in hiring one. Here are some of the benefits you can get.
1. Proper valuing of your home
A real estate agent can put the right price on your home thanks to the extensive research and network they have. Since they are up-to-date on listings, they will have a good idea of how much your property should be. Also, their knowledge of the market will help you get an idea of how much your neighbor’s sold properties cost.
2. Experience and knowledge
It’s also a given that a real estate agent knows more than you. Their experience and knowledge in real estate can help you conserve time in prepping your home and looking for the right person. They can help filter out interested buyers from those who only want to spam your email. At the same time, they can handle all the open house visits.
Another advantage you can get with a real estate agent is the network they have with other agents, buyers, and sellers. They can also recommend people they know if you plan on renovating your home to increase the market price.
What Makes Up Your Real Estate Agent’s Commission?
There are many factors that will affect your selling price. But one of those factors is the commission. If you haven’t noticed, your real estate agent’s commission makes up a big part of your costs. This is why a lot of people are hesitant to hire a real estate agent.
But how much should the commission be? The commission usually ranges from 5 to 6% of the selling price of your home. But this percentage is halved by both the seller’s real estate agent and the buyer’s. Let’s say, for example, the selling price of your home is £800,000. The total commission you will be paying is £40,000. The real estate agents will then discuss how much will go to them.
While this percentage is high, you can always negotiate on how much the commission should be. The 5-6% range is only an average and you can agree on something lower than that if you think that you will not be making use of your real estate agent that much. But you can also lower the commission of your real estate agent acts for both the buyer and the seller. This is called a dual agency.
Things You Need To Know About Paying Commission
The thing about paying commission is that it is a product of a sale. If there is no sale, then you are not obliged to pay your real estate agent anything unless it is stated in their contract that they are paid for the services they have rendered. This is why you have to be clear and cautious about the terms in the contract so that you won’t have to pay extra fees whenever your property is not sold.
It is also important to know that you can be liable for the commission even when there is no sale if you, the seller or buyer, back out of a deal. Once the negotiations have started and there has been a deal for a sale, the commission then becomes an obligation for you. This means that if your real estate agent is not having a dual agency, then you are obliged to pay both the buyer’s or the seller’s real estate agent.
At the end of the day, you don’t have to get a real estate agent if you know that you can take on their job. But if you don’t have the time and resources to do that, then it might be in your best interest to hire a real estate agent. Just remember to read the contract carefully so that you don’t have to pay extra if there is no sale made.