Some people do not want to pay the full commission rate that listing agents charge for selling a home. These individuals might decide to sell their homes on their own to avoid a commission fee or choose another option. Selling a house yourself is challenging, but there is an alternative. You can hire a reduced fee listing agent. When hiring one, you might want to ask the following questions before signing the listing agreement:
Is It a Flat Fee or Percentage?
The first question you might want to ask is how the commission works. A reduced fee listing agent offers services to homeowners who want to sell, but there are two ways the fees work. The first option is through a flat fee. Some reduced fee agents charge a flat fee for the services. The fee varies, but you might find an agent willing to help you sell your house with a fee of about $3,000. Some charge more or less, and you can compare rates. The other method is a percentage. The percentage might be as low as 1%, or it might be higher. You can calculate the approximate commission you would pay by multiplying the agent's rate with the expected home sale price.
Do You Pay a Separate Buyer's Agent Commission?
The second question to ask is if you will also be responsible for paying a buyer's agent commission. The reduced fee rate might only include the amount that your agent earns. If this is the case, you might also have to pay the buyer's agent commission, which might be around 3%. You should find out the answer to this question before signing the agreement so that you know what to expect.
What Does the Fee Include?
The third vital question to ask is what the fee includes. When you pay a flat fee or percentage commission to a listing agent, what will the agent do for you? What services does the agent provide? Some reduced fee agents offer full-service real estate services, but others offer limited services. Therefore, it is a smart idea to find this out before you hire an agent.
Asking these three questions can provide you with more information about how reduced fee listing agent services work. If you have further questions, contact a reduced fee agent to learn more. Being informed is the best way to avoid surprises and challenges when selling your house.Share