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Homebuyer’s education: Who Pays the real estate commissions when buying a home?

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By Janet Petrozelle

Who pays real estate fees

Real estate fees are a commission both buyer and seller’s agent get when a home is sold. It varies from 4% to 6% of the total home price and is split into two.

Technically it is the seller’s responsibility to pay both the agents, but buyers end up paying since it is included in the home price without the buyer’s knowledge. However, there are instances where buyers decide to pay to make their offer appear more appealing to the seller. Most times, during the closing, only the buyer makes payments, and if the seller does not sign the agreement to pay real estate fees, the home price is lowered, which is not the wish of any seller. The seller thus makes a payment, creating an illusion that they paid and then included in the home sale price.

Why is the real estate commission important

Buyer real estate agents spend most of their time driving potential buyers around during house hunting. It is by going through several properties that the team can identify the most suitable home and bid offers. It is worth noting that buyer’s agent spends most of their time driving around open homes and making offers. A commission fee is thus crucial since it helps agents recover paperwork, fuel charges, and other extra costs incurred during the process. As for the seller’s real estate fees, part of the money is used to pay for advertisements on the home. The seller agent also spends a lot of time reviewing multiple offers and selecting the best, necessitating some commission. Overall real estate charges cater for resources used and activities involved in the home transaction.

Are buyers rewarded

The Internet has made work easier for buyer’s listing agents because they do not need to move from house to another in search of the best one. Technology serves to the advantage of consumers and agents through online valuation home models, aerial maps, and real estate search maps, which reduces the tedious work involved before the introduction of the Internet in the market. Therefore some agents reward buyers by slashing the cost by half since, as buyers, they do most of the house hunting. That is in case the seller and buyer agree that each pays their agent.

Value of an agent

In-home buying, both buyer and seller need to have agents who are more skillful in home selling. However, it is unnecessary if the seller and buyer are family or friends. New home buyers need realtors to help them look for a house worth their price range. Also, realtors connect potential buyers to the best mortgage brokers and home inspectors due to their expertise in the real estate sector. When the bidding wars are high in Denton, agents help a buyer negotiate and protect them from overpayments where the potential buyers are many.

Seller agents, on the other hand, help agents have the best price for their homes. In-home selling, several variables are included, such as determining the cost of a neighborhood home. Seller agents are also involved in referring to the best people who remodel homes at a fair price and all the necessary steps in staging a home before inviting potential buyers to assess the property. Seller agents help sellers put their homes on the market in the best condition. If the seller is unwilling to remodel the house, they put up fair prices that attract buyers in their situations.

Flat fee real estate

Common instances are that real estate fees range from 4% to 6%. However, some agents offer a flat price of $100,000 to $200,000. A flat rate may seem appealing to many, but there are chances of limited services. For sellers, a flat rate limits the stages involved in making a home ready for sale, such as staging, advertising, and hosting multiple houses, reducing the number of bids on a particular home.

Buyer agents, on the other hand, perform various tasks to ensure that the buyers get the best home at the best price. Limiting their duties means that they do not participate in some of the activities in the home purchase process, which causes adverse effects to home buyers, especially those not used in the market.

Typically, individuals are advised to be very careful about a flat fee rate. If you consider the decision, it would be better to conduct proper research on the best agents available in the market with the best quality services.

The real estate agent commission is negotiable for those concerned about high fees. However, such costs are not necessarily payable if the buyer and seller know each other. Real estate websites also help with home selling and buying without involving an agent.

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