You want to sell your house and 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 break down what are the different fees paid to agents versus paid to investors…
It’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want to you to know about the different fees you have to pay because this information may help you decide whether to work with an agent or to sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
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.
So 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 should tell you.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
One of the key benefits of working with an investor to sell your home is that there are rarely any fees associated with the sale. Investors will typically take care of all fees related to selling your home, including any commissions. This can save you a significant amount of money compared to working with a traditional agent.
In addition, you may not be responsible for paying any closing costs when selling to an investor. This depends on the specific investor you work with, so be sure to ask about this beforehand. Overall, working with an investor to sell your home can be a much more cost-effective option than using a traditional real estate agent.
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 get you to fix up your house and then you’ll have to pay bills and taxes for as long as it takes the agent to find a buyer. So 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.
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.