This will depend on different factors like the market and the type of property. One thing that you need to keep in mind is that neither the State nor the Federal government have the power to influence the rate. Whatever the rate that you agree on with your real estate is allowed.
Before you can proceed to sign any document, there are things that you need to know;
What is the real estate commission?
This is the percentage that you will have to pay the real estate agent for selling your house. The percentage is calculated in relation to the sale price. So the higher the sale price the higher the commission. The commission for the real estate agents is usually between 1 and 6 percentage.
It is important for you to know how the commission is determined. Most of the time the commission is usually influenced by the selling price of the house. The higher the selling the higher the percentage will be.
Keep in mind that the percentage is negotiable and you need to be careful when you are negotiating the rate.
Note that you will have to sign a contract when you hire a real estate agent. There are three different types of contracts that you need to sign;
- Exclusive rights to the sell listing
- The exclusive agency listing
- Open listing
What if you can’t afford the commission?
Today, many people are not able to afford the 6% charged by the realtors. A friend of ours that is a very honest Realtor, said that when you find yourself in that situation, you can employ the flat fee. That’s something to consider, and our buddy Tom up in Southern California wouldn’t lead you down the wrong road with the wrong information because he’s been around for a LONG time. Also think about when can afford a fee, you need to only use the agent when you are closing the deal.
You can use the different agencies to market your property. They will however charge a fee for their services. The fee will be lower than the realtor fee that you will pay.
You need not worry because most of the realtors are reputable. It is however important for you to know what is involved in the services that are included. Keep in mind that the inexperienced realtors may be unfamiliar with the processes that are involved in selling a property.
You, if you sell the house by yourself, then you will not be required to pay the commission. It will however be challenging trying to sell the property by yourself. A realtor will help you find the best offer.