A real estate purchase or sale can seem intimidating, especially to first-time home buyers. Sometimes it can even seem like a different language. You have questions, allow me to get you the answers.
The reason some people choose low or no commission real estate services is of course to save on the commission fees and potentially keep more money in their pocket. However, in reality, it may not always turn out this way.
Using a traditional brokerage, you are represented by a personal sales representative to take care of all your real estate needs such as marketing and showing your home to potential buyers and other agents as well as taking care of all the paperwork and negotiating on your behalf. The Brokerage serves as your agent. With many “commission free” real estate services, you are selling your home on your own, doing all the leg work, and showing your home,…on your own. This requires plenty of spare time in addition to your usual work & life schedule. If you feel capable of attracting the right buyer and negotiating a sale, then by all means consider the “commission free” option. In addition, the “commission free” services usually charge a fee up front before even stepping foot into your home and charge additional fees for extra options, whereas a traditional brokerage never charges commission until the property is sold. If your home does not sell with a “commission free” service, then you are out the fees you paid up front. With a traditional brokerage, you will not be charged any commission or fee if your home doesn’t sell.
Once more, an agent from a traditional brokerage gives you an impartial view of your property and performs a comparative market analysis to stage your home properly in the marketplace to get it sold within a reasonable time period and at a price that the market can bear. Owners, by no fault of their own, tend to over-value and overprice their homes when attempting to sell privately or through “commission free” services. This usually leads to homes sitting on the market too long, becoming stale, meanwhile turning off a good portion of buyers that would have an interest in your home if was priced properly in the marketplace.
There are plenty of real estate service choices and there is really no right or wrong answer. It solely depends on the individual and your comfort level of allowing a professional to sell your home or attempting to sell it on your own. I suggest doing your research, interviewing reputable real estate agents, visiting a brokerage, and talking with representatives from “commission free” services that should be able to refer you to past clients.
Charging a flat fee instead of a % is legal. As of early 2014, REALTORS® are also able to charge a commission combination of a flat fee and %. This varies from brokerage to brokerage and agent to agent. I definitely consider all commission options when listing a property.
Commission rates vary from home to home and is discussed with the home owner at the time of the listing presenting.
Costs on any home will vary according to the market value of the property. Costs will include, but is not limited to, a REALTOR® commission, legal fees, any upgrade requests and mortgage brokerage/bank fees if applicable. If you are considering selling your home, please contact me to arrange an appointment to discuss the costs involved or obtain a free home evaluation.
The government provides several incentives for first-time homebuyers that include rebates. Click the following links for more information:
Your REALTOR® can help you out in this respect. I can email you a financial worksheet or make arrangements to get together and help you fill one out. It will at the very least give you a general idea of what you can afford. I can then direct you to a professional mortgage specialist that will help you further by choosing the correct mortgage for you and give you a pre-approved mortgage so we can begin to look for your first home. Simply contact me to get started. * TIP: You may also use my online mortgage calculator to help you determine what you can afford.