If you want to sell your house, you’re looking forward to putting some money in your pocket! But did you realize that selling your house may mean you have to PAY money? In this blog post, we will break down what the different fees paid to agents versus paid to investors…
It’s true… selling your house can sometimes mean that you have to pay money out of your own wallet. (This isn’t always the case but it often is.) We want to you to know about the different fees you have to pay when it comes to selling your house. This information may help you decide whether to work with an agent or to sell your house directly to an investor. We know you’d like to sell your house without spending money! Because who wouldn’t?
An agent is a salesperson and they will try to find a buyer to buy your house. In order to do this, they will list your house in a listing service and use various marketing efforts to try and find a buyer. The faster they do find a buyer, the more likely you will save money.
In most traditional real estate transactions, you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house, or about $6,000 for a $100,000). There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they be able to disclose all the fees associated with selling your house the traditional way.
This is the part that surprises most house-sellers: for most investors, there are rarely any fees to cover! Investors will usually take care of all fees associated with selling. Plus, there’s no commission to pay because they’re not agents so they’re not listing your house. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs. At B&M Homes, we cover all closing costs. Selling your house to an investor is one way to sell without having to spend any money.
The One “Fee” You May Not Be Thinking Of
There’s one more cost (“fee”) that you might not be thinking of: when you work with an agent, they’ll usually ask that you make repairs to your house. This means any repainting, new updates, or even certain larger renovations. Something also to consider is your time. While your property is listed on your local MLS you will still have to pay bills and taxes for as long as it takes the agent to find a buyer. Although this isn’t a “fee” to the agent, it’s a cost you’ll have to pay because of the agent… yet when you sell the house to an investor, they buy quickly so you end up saving this cost as well! At B&M Homes, we buy properties in as-is condition. No need for repairs!
So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell.
If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to walk you through it.