The Different Fees Between a Real Estate Agent and Investor

If you want to sell your house and you’re looking forward to putting some money in your pocket, you need to learn about the fees, bet you did not realize that selling your house may mean you have to PAY money? Today we will we break down what are the different fees paid to agents versus paid to investors…

Whether we like it or not, unfortunately, It’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.). We are here to help you understand the different fees you have to pay, because this information may help you decide whether to work with an agent or to sell your house directly to an investor.

What Are The Fees Paid to Agents?

An agent is a salesperson and they will try to find a buyer to buy your house. These professionals know their local markets, have superior negotiating skills, and can generally make the entire buying and selling process easier. To achieve this, they will list your house in a listing service and use various marketing efforts to try and find a buyer.

In exchange for their expertise, real estate agents earn a commission. Here’s a look at how real estate commissions work and who pays these fees.

The fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house, or about $6,000 for a $100,000). 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. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they should tell you.

What Are The Fees Paid To Investors?

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 (Remember that the Real Estate Agents have a standard 3% commission at least) .

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 Secret “Fee” You May Not Be Thinking Of

There’s always something else that you should consider. When you work with a Real Estate Agent, they’ll get you to fix up your house, ’cause the potential clients would be looking for a ready to move in house. 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 that goes into the agents pocket, it’s a cost you’ll have to pay because of the agent.

But if you sell the house to an investor, you will not longer have to take care of any of this, so you en up saving this costs as well.

The Ultimate “Fee” That You Need To Consider

TIME, time is money, that statement is also true on Real Estate.

A normal property sale can take 30 to 60 days, depending on the time in each stage. An Investor is able to close within 7 days.

Knowing the difference between an agent and investor can really help a homeowner sell their home in the right way.

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

If time isn’t an issue and you can spare money to make all the necessary repairs, then an agent is generally the best way to go.

But if you are under time pressure or just don’t want to deal with the house, and investor can make it happen very quickly and the home can be sold as-is.

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.

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 (210) 607-9779.

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