Did you know that 63% of people who choose to sell their homes without the help of an agent do so because they don’t want to lose 6% of the money they’d make from the sale? The thing about selling your house on your own is that you aren’t going to get top price for your home! Your home will sell for much less than a home that’s being shown by an agent. So you’re actually losing more money when selling on your own!
If you’re toying with the idea of selling your house on your own to save that commission money, here are a few details about an agent’s commission to prove the agent’s worth it.
- Your agent splits their commission
Yes, you do lose 6% of your money, but your agent doesn’t pocket all of that change. They’ll do a 50/50 split with the buyer’s agent. Let’s sell your house for $250,000, $15,000 will be taken from your profit. Your agent will split that with the buyer’s agent. So each agent will get $7,500. They also have to pay broker fees which could range between 10% to 50%, thus dwindling their commission even further!
At the end of the day, they could take home anywhere from $1,000 to $3,000.
- Your agent works hard for that commission
Your agent isn’t just posting your house online and that’s it. They’re working hard to get your house sold and sold at a reasonable price… Even if you don’t see them face-to-face everyday. What are they doing? They’re doing market research, they’re marketing your home, they’re looking at your home for outdated home features to fix up before selling. They’re networking, following up with the agents of potential buyers. They’re negotiating, writing contracts, and so much more!
- Commission rate can vary by locale
We say agents get 6% commission, but the national average is actually 5.8%. The commission rates aren’t regulated in the US and each state (even each city) can change their commission rate! So, before getting freaked out by the 6%, do a little research to find out just how much the commission rate is in your area. It may be less!
- Top selling agents sell faster and get higher prices
According to insights from top agents, homes with the kitchen, bathroom and outdoor features buyers want will appeal to a larger pool of buyers and increase the value of your home. Top selling agents understand the importance of targeting properties to the ideal buyer and, being as it’s a seller’s market in 92% of the country, that agent will sell your home quickly and for more money. So, while you may be giving up 6%, someone could put in an offer well above asking. You could walk away with more money than expected! Pretty sweet, right?
Look, when money is tight and you need to get the most out of your sale, of course you’re going to want to figure out ways to keep more money in your pocket. However, when it comes to selling on your own simply because you don’t want to pay that 6% commission… You’re only shooting yourself in the foot in doing so. Not only will you lose more money because the house won’t sell for as much as you want, but it’ll take longer to sell and you could even miss out on potentially selling your house for more than you’re asking!