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.
It’s important to note that the fees associated with selling to an investor are typically different from those paid to agents. When working with an investor, you generally don’t have to worry about paying real estate agent commissions. Investors are buyers, not intermediaries, so there is no need for a salesperson’s commission to be factored into the transaction.
Instead, when selling to an investor, you can expect to receive a straightforward cash offer for your property. This offer is typically based on the market value of your house and the investor’s assessment of its condition. Since there are no agent fees involved, you can avoid the 6% commission or any additional costs associated with selling through an agent.
Additionally, when selling through an agent, you may encounter other expenses related to advertising and marketing efforts. Agents often use various channels and strategies to promote your property, which may come with associated fees. Conversely, when selling to an investor, you can bypass these expenses as investors typically have their own marketing methods and networks to find properties.
Moreover, traditional selling methods may involve expenses such as listing fees, sign placement fees, and title company fees. These costs can add up and impact your overall profit from the sale. However, when selling to an investor, you can typically avoid or minimize these additional fees, as investors often handle the necessary paperwork and transaction processes themselves.
It’s always recommended to have a clear understanding of the fees and costs involved in any real estate transaction. When considering selling options, discussing these matters with both agents and investors will help you make an informed decision about the most financially beneficial choice for your circumstances.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
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.
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.