If you’re planning to sell your home soon, you’re probably looking for a Realtor or real estate agent to lend a helping hand. Of course, you’ll have to pay a commission for their services. Still, the costs of selling a house with a Realtor could easily outweigh the benefits if you wait enough for the right offer.
In this guide, you’ll learn more about the process of selling your home with a Realtor and the commission you can expect to pay when the deal closes. But if you’re crunched for time and need to sell your house fast, there’s another option to consider.
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Process of Selling Your House With a Realtor
Hire a Real Estate Agent or Realtor
The first step you should take is to find a reputable real estate agent or Realtor who’s experienced, knowledgeable and well-versed in your local market. When searching for options, it’s important to understand the difference between the two. A real estate agent is an individual who is licensed in their state to assist with real estate transactions. On the other hand, a realtor is a real estate agent or broker who’s a part of the National Association of Realtors.
Perform a Home Inspection
If the buyer is financing the home, the lender will likely require a home inspection and appraisal. It’s done to ensure the home’s market value is at or above the sales price. The buyer also wants assurance that there aren’t any significant issues with the house that should be addressed before the sale is finalized.
Make Repairs, Renovations, and Improvements
Unless you’re planning to offer concessions to the seller, which could eat into your profit, you’ll need to make the necessary repairs, renovations and improvements. Otherwise, the deal could fall through if there’s an appraisal contingency in the contract.
Pay Fees and Commissions
You’ll pay closing costs, typically around 3 percent of the sales price, and real estate commissions at the closing table.
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How Much Do Realtors Charge to Sell a House?
How Much Do Realtors Charge to Sell a House on Average?
On average, you’ll pay a commission between 5 percent and 6 percent of the purchase price to sell your home. It’s typically split between the seller’s agent and the buyer’s agent. So, if the asking price for your home is $450,000 and the buyer offers $475,000, you’ll be on the hook for $28,500 ($475,000 * .06) in real estate commissions if the fee is 6 percent. Both your agent and the buyer’s agent would receive $14,250.
But if you sell your home for cash to an iBuyer, like Offerpad, the average service fee is five percent. So using the same example, you’d pay $23,750 instead of $28,500 in commissions, which equates to a cost savings of $4,750. Plus, you won’t have to offer seller concessions to seal the deal.
What Do Real Estate Agents and Realtors Typically Get Paid For?
Real estate agents and Realtors do a lot of work behind the scenes to ensure your home garners the attention it deserves and attracts the right buyers. They’re also instrumental in ensuring the deal goes off without a hitch or minimal delays. Here’s a list of their duties:
- Preparing Your House: includes advising home sellers on ways in which they can prepare their home to make it stand out from others on the market
- Putting It Up For Sale: involves listing the home so other real estate agents, Realtors and independent buyers can know it’s available for purchase
- Marketing: entails positioning the property to attract winning offers
- Staging Your House for Potential Buyers: involves hiring a home staging company to make the home even more appealing if the seller has already moved out
- Negotiating and Closing the Sale: includes accepting offers from prospective buyers, negotiating concessions and going the extra mile to make sure the deal closes within a reasonable timeframe
How to Sell a House Without a Realtor
There are two popular options to sell your house without a Realtor. You can take the For Sale By Owner (FSBO) route, which means you’ll handle the entire process from start to finish. This approach isn’t recommended unless you have extensive experience in the real estate industry.
Or you can sell your home to an iBuyer for cash, like Offerpad, to make the process seamless. Offerpad has done away with the traditional and more lengthy process of selling a house by offering a streamlined experience with lower fees than you’d incur when selling on the traditional market. Home sellers can also qualify for other closing offers, like Extended Stay and Free Local Move.
Offerpad features two options:
- Express: sell your home to Offerpad for cash and pick a closing date that works for you
- Flex: list your home with Offerpad and receive complimentary services to prepare it for the marketplace
Quick note: If you test the market with Offerpad Flex and don’t get the offers you want, you may still have the option to sell to Offerpad if it’s within 60 days.
If you aren’t sure which is best, get started by requesting a free cash offer with no obligation. You’ll get a response from Offerpad within 24 hours, along with additional information on your options to help you make an informed decision.