Do You Always Have to Pay a Commission When Selling a Home?
So you’re getting ready to sell your home. You’ve probably thought a lot about how much money you think you can get from the sale. Have you thought about what you might have to pay to sell your home? That’s right: you may have to shell out some of the money you get from the sale, with some of it going to commissions. But is that always the case? The answer: it depends on your buyer.
Buyers With a Mortgage: Usually
If your buyer is paying for a home using lender financing, there’s a good chance that you’ll have to pay a commission when selling your home. This is because commissions are how real estate agents get paid for their work. In these sorts of transactions, the buyer and seller often both have an agent, which means you’ll be on the hook for commissions for both. That usually comes to 5-6% of the home’s sale price, which gets split between the agents.
Cash Buyers: Sometimes
Not all buyers use lender financing to pay for homes. Some pay in cash they already have in their accounts. These buyers sometimes use real estate agents, but not always. Whether or not you choose to is up to you, of course. Agents can bring valuable knowledge and experience to the table. Just remember that you’ll be responsible for commissions for whatever agents are involved in the transaction.
Fast Home Buying Companies: Never
There’s one segment of cash buyers that never uses real estate agents: fast home buying companies. These companies have made it their business to know the ins and outs of buying and selling homes, so they don’t need an agent’s services. Their process is often so simple that you as the seller don’t need an agent either. Because neither the buyer nor seller is using an agent’s services, you won’t have to pay a cent in commission when selling your home in this scenario.
Sellers are usually the ones who are financially responsible for paying agent commissions. Whether or not you have to pay a commission depends on the buyer and whether or not either of you used the services of a real estate agent. Keep that in mind when deciding who you want to sell your home to.
Intrigued by the idea of selling your home for cash but unsure if it’s right for you? Click here to learn about just a few reasons why you should sell your home for cash to Atlas Residential.