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What Are The Different Fees Paid To Agents Versus Paid To Investors?

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You have decided to sell your house and cash in the equity you have built up over the years. Did you know that when you sell your house you have to part with some of that hard-earned equity? Yes, you have to pay money to sell your home. In this blog post, we break down what are the different fees paid to agents versus paid to investors…

The statement above is true… selling your house most likely means that you have to pay. (This isn’t always the case but it often is.)

We want you to understand the different fees you have to pay in order to sell your home. The information in this blog post may help you decided whether to work with an agent or sell your home directly to an investor.

What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees

An agent is a salesperson and they will try to find a buyer to buy your house. In order to do this, they will list your house in a listing service (MLS)and use various marketing efforts to try and find a buyer for your home.

Because they are providing a service to you, they will charge you a fee/commission for selling your property.

The typical agent commission ranges from 3%-6% of the total sale price of the home. To give you an example: if you sold your home for $100,000 you would pay $6,000 in commissions.

There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house.

Some additional fees include:

  • listing your home
  • Agent’s brokerage fees
  • Sign in your front yard
  • The title company fees

The list goes on and on….. You can ask the agent about these and they should disclose them to you.

What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees

This is the part that surprises most house-sellers: for most investors, there are rarely any fees to cover.

Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your house.

You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.

The One “Fee” 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.

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 your house to an investor, they buy quickly so you end up saving this cost as well.

So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell.

If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to walk you through it.

Conclusion

If you are ready to sell your home and cash in the equity you have built up for years. Read this blog to learn the fees/commissions involved in selling to a realtor compared to an investor.

DO YOU KNOW WHAT FEES YOU ARE BEING CHARGED?

We’re happy to give you more information about our buying process and to share with you exactly how it all works. Click here and enter your information or pick up the phone and call us at 832-535-2034.

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