How Much Does a Real Estate Agent Cost?
A real estate broker or agent is a license professional within the state that assists either a seller or buyer purchase either a new home, piece of property or commercial property. A real estate agent, often referred to as a salesperson, will help a client with many services such as a marketing, showing homes and more. The cost of a real estate agent will depend on a few factors such as the value of the home and the brokerage.
How much is it?
- On average, a real estate broker works on a flat commission that is shared by the brokerage. 99% of the time, the seller will be the only one that pays out a commission to the agent. On average, the fee can range anywhere from 4% to 6% of the home value. The industry standard is 6% which is split 50/50 with the buyer’s and seller’s agent.
- The only fee that a potential buyer may have to pay in regards to a real estate agent is an administrative fee that can cost anywhere from $195 to $895 depending on the brokerage. There are many real estate agencies that do not have fees at all.
- For example, a homeowner that sells a home for $200,000 would have to pay up to $12,000 in real estate agent fees.
What are the extra costs?
- Additional marketing fees may apply for sellers that want to market in different ways such as a newspaper, radio or even a local coupon guide.
- An additional office fee may apply on top of the brokerage fee.
- Other additional fees that are outside of the brokerage such as title, taxes, appraisals, etc.
What is going to be included?
- A real estate agent will assist a seller with the processing of the paperwork, the marketing efforts, setting up open houses, assisting potential buyers, as well as helping with the entire closing process. The real estate broker is essentially your coach during the entire process helping with any questions, negotiations and more.
- A buyer’s agent will help show homes in the area, find homes that meet certain criteria, as well as assist with paperwork, closing, and the negotiation process.
Tips to know:
- Try to talk with previous clients to see how they liked their real estate agent. The more you know about them, the better it is.
- Always make sure that they are licensed within your state and legally can practice selling real estate.
- Consider looking up those that have won awards through the National Association of Realtors.
How can I save money?
- Highly consider real estate services that offer services at a heavy discount. Online real estate agents such as RedFin.com and HungryAgents.com can both find a potential buyer or seller an agent that is willing to work at a fraction of the cost. When going this route, make sure that you consider talking with a few agents. Just because they are cheap, you’ll find that it doesn’t mean that they are going to do a great job.
- Talk with a local realtor to see if he can bring down his fees. Most realtors are fairly desperate for work and are more than willing to do the work. Smart Money offers an article titled, “10 Things Your Real Estate Broker Will Not Tell You.”