If you’ve ever done a traditional home sale, you know how stressful it can be. There’s a reason why 95% of home sellers report feeling stressed during the process—it can be a roller coaster!
We’re guessing the last thing you’ll want to do, once that roller coaster comes to a stop, is shell out a hefty fee for your agent’s commission. After all, selling a home is an expensive prospect, even without an agent.
So do you need to work with a realtor? The truth is that it’s possible to skip their fees—and many other associated costs as well. Let’s take a look at both sides of this issue, from the most common fees you’ll pay to the methods of avoiding them entirely.
How Much Are Realtor Commissions?
Also called a “listing fee,” realtor commissions are essentially a way of paying your realtor’s salary.
While you’re selling your home, your real estate agent will offer a range of services that are included in this fee. You’re also paying for access to their expert advice and knowledge of your local market.
In general, their commission fee will come out of the final sales price of your home. This, of course, ensures that they have a great incentive to maximize your price tag.
You can expect to pay a fee that averages around 5-6% of your home’s sale price. However, keep in mind that this fee will vary depending on your location, your property, and the scope of the realtor’s services. In some cases, you could pay a commission fee as high as 10%!
Note, of course, that these fees may be open to negotiation. If you’d prefer not to advertise or stage your home, for example, you may be able to ask for a discount.
What Are the Other Costs to Consider When Selling?
If you do choose to hire a realtor, there are a few costs you should be aware of beyond their hefty commission fees. Though the additional costs below will vary depending on your property, situation, and preferences, it’s crucial to keep them in mind as you move forward with the sale.
Home Upgrades and Repairs
Most sellers will need to do some basic home upgrades to make a property more appealing to potential buyers. If parts of your property are in a state of disrepair, especially major issues like roofing, plumbing, or foundation problems, you may have to sink a significant sum into fixing them. On the other hand, if your home is in good condition, your realtor may still advise you to invest in key home updates to boost your sale price.
Landscaping Costs
Curb appeal is crucial when you’re trying to sell, which is why it’s always smart to invest in landscaping. Whether you opt to trim your existing landscaping or overhaul the design is up to you, but you’ll also have to factor in the cost of upkeep for as long as it takes to sell your home.
Staging Fees
If your home design leaves something to be desired, a professional stager can help ensure that your home’s interior matches the attractive landscaping out front. However, keep in mind that good staging can cost several hundred dollars. What’s more, you’ll also have to pay for utilities, as it’s hard to show off your home without lighting, heat, or air conditioning.
Home Inspections
In most cases, the buyer is responsible for paying for a home inspection, which checks for major issues within the home. However, it’s not unheard of for the seller to ask you to cover the cost during negotiation.
Do You Need a Realtor?
Though the majority of home sales happen with the help of a real estate agent, the truth is that you can absolutely sell without a realtor. There are two main paths you can choose from:
For Sale By Owner
If you still prefer a traditional home sale, you can opt to sell “For Sale By Owner,” or “FSBO,” meaning you’ll have to take charge of all the duties that would usually go to a realtor. This includes everything from pricing, listing, and marketing your home to setting up inspections and filling out legal documents. You’ll also still be responsible for all of the fees mentioned above, minus the realtor’s commission fee.
As you might expect, some buyers find that the extra effort can add stress to an already complex process. This is probably the reason that FSBO sales accounted for only 8% of all home sales in 2020.
Cash Buyers
If you want to avoid the cost of a realtor without taking on extra responsibilities, you can also sell to a cash buyer. This is a much faster process, as you’ll often get an offer within 24 hours after the cash buyer visits your home.
This option means that you’ll avoid a costly realtor commission fee as well as all of the additional fees we’ve mentioned above. Cash buyers won’t expect your property to be in perfect condition, so wasting money on landscaping, repairs, and staging wouldn’t make sense.
Instead, you’ll sell your home as-is, allowing you to keep more money in your pocket without wasting time on things like marketing and repairs.
Sell Your House Without the Extra Fees
Before you jump into a traditional home sale, stop and consider your property and preferences. Do you need a realtor, or would it be easier to sell without investing in extra fees, repairs, and additional services?
Don’t overpay to sell your home! If you’re ready to make a fast sale with fewer costs, our team of cash buyers is here to help. With our expert services, you can avoid jumping through hoops, struggling with red tape, and shelling out for unexpected fees.
To learn more, or to get a quick offer on your home, reach out to us today.
