How much does hiring a real estate agent cost? Is a realtor’s fee worth the services they provide? Read on to learn the truth here.
On average, a typical home sold by the owner will sell for $200,000. Homes sold with an agent’s assistance average a sale price of $280,000. How much of this money will go to the agent, however?
The real estate agent cost is an important factor to consider when either selling or buying a home. Before you can decide if working with an agent is right for you, you’ll want to know how much the agent will cost and if their services are worth their price tag.
Is it worth getting a real estate agent? If you do hire an agent, how much do you need to budget for their services? How will they help you sell or buy a home that’s worth the cost?
To learn the answers to these questions and others, continue reading below!
The Standard 6%
A real estate agent’s price tag is a standard 6% commission. This means that your agent receives 6% of the home’s cost whether it’s being sold or purchased. It’s important to note, however, that the 6% commission is split between the buyer’s agent and the seller’s agent.
Do keep in mind that the 6% commission rate is only a standard. This is what you can expect to pay around, but some states are different than others. Either way, you’ll still want to know how an agent will help you.
How is this money put to use? The answer depends on what your agent is there for. Is your agent helping you sell your home or find you a new one?
Here’s what a real estate agent will do for you, depending on your needs.
Seller’s Agent
When selling a home, an agent will know how to stage your home and how to advertise it. They know all of the best local photographers and will list your home on multiple selling platforms. They might use social media, ads, website listings, and more.
Agents also know what other similar homes in the neighborhood are going for. This comes in handy when needing to list your house at a fair price. With all their expertise, your home will get sold quickly and for the best price.
Buyer’s Agent
When buying a home, an agent will know how to find a home in the neighborhood you want that matches your budget and has many of the things you requested it to. They know all of the best local contractors and inspectors.
They’ll get you set up with a home inspection and ensure that you’re not getting fooled by a deal that’s too good to be true. Find a home in the right location, within the right price range, and with all the details you’re looking for isn’t always an easy job.
Your real estate agent will get the job done.
Is a Real Estate Agent Cost Worth It?
You can expect to owe your agent about 6% of the selling price of the home. You know what you can expect an agent to do for you during the buying or selling process, but is the cost of an agent really worth it?
Below are a few benefits that a real estate agent will bring to you.
They Know the Market
Real estate agents are professionals and experts in the field of buying and selling. The best real estate agent is someone with experience and someone who knows the area well. They know when to buy, when to sell, and how to go about either in the most beneficial way.
They’re aware of home prices in the area and when the prices drop or increase.
They Know How to Sell/Negotiate
Agents are also experts at negotiating deals and selling houses. You have to pay them a small commission percentage, but if they can save you thousands of dollars on a buy or sale, then they’re worth their price tag.
Trying to negotiate a deal with a buyer or seller on your own is challenging. They’ll research the home and know what details about the home to use to either increase sale price or decrease sale price. Your agent will handle this step for you and will do so with expertise and professionalism.
They Make the Process Easier
Did you know that there are certain codes and legalities to follow when buying or selling a home? There’s also a lot of paperwork involved in the process and an agreement will need to be drafted as well. What about all of the closing documents that’ll need to be signed?
Are you willing to learn all the legalities and draft an agreement and read through closing documents on your own? The process can be done alone, but if you didn’t go to school to become a realtor, then it can be a quite difficult one. Hiring a real estate agent makes the buying and selling process a lot easier.
You already have enough on your plate and stress about other aspects of moving will be on your mind. An agent will give you some peace of mind by handling a lot of the hard work for you, allowing you to relax as much as possible.
How Can a Real Estate Agent Help You?
Are you selling or buying a home in the near future? Can a real estate agent help you? After reading through this guide, be sure to weigh the pros and cons of using an agent to decide if the real estate agent cost is worth it for you.
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