Misconceptions About Real Estate Commissions

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Does it really cost you more to have a real estate agent?  What if the buyer has an agent, too?  Do you pay double the commission?

The answer to the first question is that it could actually cost you a lot if you don’t have proper representation.  Our agents are trained to know the market, the real estate process (from contracts to inspections to closings) and even negotiation tactics that can save you time, money and frustration.  In fact, the numbers prove that using a Realtor is not only a wise choice but a necessary one for most.  How do we know?  Approximately 70% of the people who attempt to sell their own home (commonly referred to as FSBO’s–For Sale By Owner) will give up attempting to sell on their own and hire an agent within the first 30-60 days.

There is just no replacement for having someone on your side who knows every facet of the real estate process.  In the end, it could end up costing you a lot more without an agent.  It could take longer to sell your home.  Your home may be under-priced, which means you’re leaving money on the table.  Your home may be over-priced, meaning it will take longer to sell (if at all).  You may experience delays if you don’t understand all parts of the process, including inspections and closings.

Another common misconception is that having a buyer’s agent costs more.  Actually, there is only one commission per transaction.  The seller’s agent either gets 100% of that commission or they have to split it with your buyer’s agent.  We can’t overstate the point enough that each person (both buyer and seller) should have a representative in the process.  That person is someone who has your own specific best interests in mind and is contractually obligated to represent you throughout the process.

If you’re looking for expert guidance and assistance with your real estate transaction, please let us know.  With the confidence of over 68,000 transactions, we have the experience you’ll need to breathe easy and know your interests are protected.

Michael Carr is the Co-Founder & COO of BrandFace, LLC. He is also a real estate branding expert and international bestselling author. As America’s Top Selling Real Estate Auctioneer, he has sold billions of dollars in commercial and residential properties.

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