Published on January 24, 2020 . By Tabor Campbell Realtor | Multi-Million Dollar Real Estate Producer | hometiva.com
Realtor commission fees can cost sellers thousands or even tens of thousands of dollars. You can save on commission without sacrificing quality or service with Hometiva.
It’s no secret that sellers who sign with real estate agents make more on their homes than those who go it alone — also known as For Sale By Owner, or FSBO.
At the same time, traditional listing fees are often unreasonably high, eating into profit margins to the point that the benefits of partnering with an agent are effectively canceled out.
In other words, as a seller, you’re stuck between a rock and a hard place.
Luckily, you don’t have to choose between these two less-than-ideal options anymore.
With Hometiva, you get the best of both worlds: experienced full-service agents at a fraction of the cost!
What are realtor fees?
Realtor fees are the compensation realtors get for helping you buy or sell your house. It's typically a percentage of the sale of your house and is split with the buyer's agent.
Traditional agents charge a 3% commission each, which amounts to 6% on the final sales price. On a $500,000 home, a 6% commission would amount to $30,000. That is a serious chunk of change!
Who pays the commission?
Generally, the home seller pays the full commission for the services of both their own listing agent and the buyer's agent (assuming the buyer has one).
Buyer's and seller's agents typically split the commission. So if a home sells for $500,000 at a 6% commission, the seller's agent and buyer's agent might split that $30,000, and each receives $15,000.
What's included in realtor fees?
Though people certainly have the option of selling (or buying) their house without a real estate agent, agents provide clients a wide range of services, including helping you price your home, marketing it (on the multiple listing service, social media, and other venues), negotiating with home buyers, and guiding the home sale through closing.
As trained experts, real estate agents can help you fetch top dollar for your house and put out fires—while also alleviating some of the stress that comes with selling a home.
On the buyer's side, they'll help you locate a house by using their network and advise you on each property.
What is the average commission rate for a real estate agent?
The average commission charged by real estate agents varies market by market, but that average is almost always between 5 and 6 percent.
The average rate of appreciation of real estate is only 3.7 percent, and when you take into account all of the costs of selling a home, it can take a couple of years of homeownership to be able to sell your home and break even.
Saving on the commission is often the difference between selling your home for a profit or losing equity. It can also be the difference between buying another home of a similar size or having enough for a down payment on a bigger home in a better area.
Why is a full-service agent important?
Saving on the commission is great, but you have to be sure you aren't sacrificing service in the process. Most sellers hire an agent because they aren't confident they can sell their home for the highest possible price on their own.
It's important to work with a professional agent that takes professional photos, has the experience to help market your home, and who knows how to negotiate with potential buyers when an offer comes in.
Great agents have systems in place that allow them to sell lots of homes and still provide full service to their clients. At Hometiva, our technology-centric approach allows us to reduce the cost of doing business so we can pass along the savings to our clients.
So how do you save on commissions?
The Hometiva Alternative: $3,495 Listing Fee = Smarter Realty
Saving on commissions with a full-service agent doesn't have to be hard. Hometiva provides the expertise needed to guide you to a successful closing for a $3,495 listing fee on every home. It’s that simple!
We guide homeowners through the entire home selling process, including the initial in-home consultation, market analysis, staging advice, professional photos, showings, negotiations, inspections, appraisals, and everything else you need to close.
Our DFW team performs 10x more transactions than a typical Realtor, and we rank in the top 2% annually. We are updated on local market conditions across DFW so you don’t have to be.
In 2019, our clients averaged over $10,500 in commission savings by using Hometiva compared to traditional agents.
With Hometiva, selling your home...is finally affordable!
Click here to schedule a free, no-obligation consultation with a Hometiva advisor.