Realtors earn a commission called a realtor fee every time they sell a house, and it’s nothing small, amounting to up to 6% of the total house sale. However, it can be maneuvered around.
Certainly, you could just sell and purchase property yourself without using a realtor. That’s easier said than done, but it’s not impossible. A better way might be following a few tips to help either diminish or sidestep fees altogether:
- Finding The Right Realtor
- Make Agents Justify High Commissions To You
- Hold Out For Higher Listing Prices
If you sold your home for $300,000, a 6% realtor fee would pull $18,000 from that sum. This is a typical commission for realtors. If you use the same agent to buy and sell your home, they’ll take 3% of the sold and purchased properties.
Push for a split between separate realty agencies, or a halved commission. Use two agents instead of one, and let them work with one another. Also, the larger the appraisal of the property you’re buying, the greater leverage you’ll have in terms of diminishing commission.
Make Agents Justify High Commissions To You
Ask agents why you’re paying them such a high commission, and make them prove the worth of such a price. Be sure you know other agencies in the area, and have done your homework. At the very least you can knock off a few percentage points.
Hold Out For Higher Listing Prices
Sometimes realtors will low-ball you on listing prices because they’re trying to work a deal. Holding out for a higher listing can help you offset their commission fee.
Builders (like Experience Homes in Amarillo, TX) sometimes offer home trade-in program. Basically, they appraise your property, and when you buy your new home, they’ll pay you a percentage of the old home’s appraisal.
No realtor fees are involved, you don’t have to do any house showings, you won’t pay two mortgages, and you don’t have to stress out on leaving by a certain time.
Additionally, if you clean things up and do some DIY additions prior to the appraisal, you can increase its worth substantially, helping cover the differential.
Such tactics will give your money greater buying power, and help you secure the best real estate deals.