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…
Yes, you will end up paying money to sell your house. We’d like to get you familiarized with the fees associated with investors vs. real estate agents. This information will help you decide if you will want to work with an agent or an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? – Here are the Agent Fees:
A real estate agent is someone you may want to use to help you sell your house. They will often ask you to sign a document showing they will represent you and then they’ll list your house on multiple websites for the whole world to see.
When you list your house to sell with an agent, you will most often pay a fee of 6%. On a $250,000 house, that’s $15,000. Then you may need to pays extra costs – a yard sign, some advertising costs, a fee to list your house, fee to the title company, it may be a pretty long list of fees… So, it’s important to get a grip on all these fees upfront. Just ask the agent, they should explain it all to you.
What Are The Different Fees Paid To Agents Versus Paid To Investors? – Investor Fees:
You really pay no fees to sell your house to an investor. There are no commissions, no attorney, documentation, or other fees. In some cases you don’t even have to pay closing costs. An investor does not need to list your house anywhere for sale, so there are no advertising costs.
“Fees” 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.
One other factor to keep in mind is, when you are selling with an agent, usually there is some other hidden costs – you need to get your house market-ready – repairs, cleaning, etc. And be able to get the house officially shown to many potential buyers. Moreover, while the house is being sold, you still have to pay, utilities, taxes, etc. In contrast, when you are selling to an investor, like us, you won’s have to pay any of these fees and the sale can happen in a week or two, so you will not really accumulate much taxes or other bills.
Which way is better for you? It depends on several questions. How quickly do you want to sell? How much money can you spend on commissions, repairs and cleaning of the house?
If you want to make top dollar from the sale of your house, you’ll need to do a good amount of work, and pay fees and commissions. Or, if you decide to sell to an investor, that’s the quickest and easiest way and you’ll get a fair offer based on the current condition of the house. But if you are still undecided and want to know more, call us, we’ll be happy to explain your options.