On average, home sellers pay their real estate agents a 6% commission when selling their houses. While this is the average, some people pay much higher rates than this, and others pay lower rates. It is sometimes difficult to find an agent that accepts a lower rate unless you look for agencies that offer low real estate commissions. You can find ways to pay a lower commission rate if you look at your options. Here are several things to know about low real estate commissions for homeowners that want to sell.
1. How Commission Works With Agents
The first thing to know is that you can agree on a commission rate with the agent you hire to sell your home. You should realize that your agent does not earn the full amount, though. The agent splits it with the buyer's agent, and your agent gives part of the commission to the agency they work for. Therefore, your agent will not receive the full rate that you agree to pay. Instead, your agent might receive about half the amount or less. It depends on the situation. If you work with a low-commission broker, that broker does not receive the full amount either.
2. Low-Commission Brokers Might Only Offer Listings
The second thing to know is that you can find many ways to sell your house. If you decide to use a low-commission broker, the services they offer might be different. Low-commission brokers come in different types.
The first type might offer to list your property on the MLS for a low fee. The fee might be a percentage-based fee or a flat fee. In this case, the broker will only list the house. In other words, the broker will not help you sell the house by scheduling viewings or negotiating. You might have to do all the work. If you do not mind doing the work, this is an ideal way to sell a house.
3. Some Low-Commission Brokers Offer Full Services
The last thing to know is that you can also find brokers that charge low fees but offer full services. Brokers that offer full services handle all the tasks that other agents offer, but they charge lower commission rates.
Before you choose the type of agent you want to hire, make sure you know the commission rate and what the services include. You can learn more by talking to a low-commission broker today.