Although it is easy to buy and sell a house on your own, there are advantages to dealing with a real estate agent. Agents can suggest a list price, market your home, and bargain on your behalf, but their services are not free. If you're considering employing an agent, you should be aware of the average real estate commission.
The real estate commission is normally split between the selling agent and the buyer's agent at closing. When a single agent represents both the buyer and the seller in a dual agency situation, one agent receives the commission. But you don't have to pay any commissions here at Josh Smith Buys Houses.
In the United States, the typical real estate commission is between 5% and 6% of the home's sale price. So, if your house sells for $250,000, the commission might be anything between $12,500 and $15,000. Although the average commission for real estate agents is between 5% and 6%, according to a Real Trends poll, the actual commission rate varies based on the state and housing market.
When there are fewer listings available, the commission rate usually drops. Agents, in the end, want to be employed, thus they set their prices to compete with other agents in the region.
Commissions on real estate transactions are negotiable. Some agents may be ready to reduce their commission by a fraction of a percentage point in exchange for the seller's approval of their contract. If you live in a state that allows it, you might be able to find an agent prepared to provide fewer services for a flat cost or discount.
But you don't need to negotiate with an agent for the commission when you work with Josh Smith Buys Houses.