Whether you are selling your old house or buying a new home, the services of a skilled real estate agent will be worth the cost. The Realtor will guide you through the entire process. By doing so, he or she can reduce your stress level, explain your options, answer critical questions and ensure that your rights are protected. However, you understandably need to know more about Realtor fees before you hire a real estate agent.
Most real estate agents work on a commission basis, so they do not collect a fee unless the transaction closes. The amount of their commission varies and can be negotiated, but you will find that most charge a 3-percent fee. Both the seller’s real estate agent and the buyer’s real estate agent charge a fee for their individual efforts. A 6-percent combined real estate agent fee can add up to a sizable amount, so it is important to plan ahead for this fee. Customarily, the seller is responsible for all real estate agent fees. This accounts for the bulk of the seller’s closing costs in a transaction. In a for-sale-by-owner transaction, the buyer and seller should agree on who is paying the buyer’s real estate agent fee.
There is a monetary value associated with using a real estate agent when buying and selling houses. The National Association of Realtors reported that the average cost of a for-sale-by-owner house in 2018 was $200,000. For agent-assisted transactions, the average cost was $280,000.
Do you have questions about other closing costs associated with your transaction? MortgageDepot is your source for accurate information about financing options, transaction fees and more. Our associates are available to answer your call, so connect with us today.
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