Why pay real estate commission?
Hi, I’m Michael Dominguez with the Doors to Wealth Real Estate Group and I had a question asked of me.
If a real estate agent approached me out of the blue with the buyer who wanted my house, should I expect to pay a 3% real estate commission fee? One of the things that I always like to talk about is, it’s not necessarily– people get so caught up on the real estate commission that they’re paying. Whether it’s 3%, 5%, or 10% commission, it’s really not nearly as important as the most important number of all and that is, in fact, how much do you make at the end of the day, what’s your take-home at the end of the day.
Michael’s real estate commission two cents!
My advice to anyone who is thinking of selling the property on their own is, really seriously consider that you don’t necessarily have the ability to determine whether or not somebody is a qualified buyer. It may take a lot of time and effort, and when you see a lot of those discount brokerages out there that are looking for– you just basically list the property, and you don’t do anything else, you’re basically acting as the real estate agent. And the interesting thing is most of the buyers that are qualified already have a realtor. What we’re finding is that the vast majority of buyers are– in order to get those buyers, you’re actually paying a 2,5% fee just to attract those buyers anyway.
Are you really saving when you don’t pay a real estate commission?
The savings won’t be nearly as much as the 5% that everyone always talks about. What I tell people to do is find out the exact amount of money that you’re hoping to get and then look at it when you’re getting a discount brokerage, and what kind of numbers you are getting with that. You’re going to probably end up finding that if you’re going on the MLS, if you’re using all of the tools that are available with a skilled realtor, you’re going to net at least as much and likely more money than if you’re doing yourself and you’re not spending the hours and in some cases hundreds of hours, and potential liability that’s faced if you’re not going– if you are going on your own, you’ve got the ability of using the realtor’s insurance.
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