Selling real estate can be just as much work as buying. There are so many things to worry about as you prepare your home to list on the market. Then you have to worry about the real estate agent you will hire to help you get the house sold. After that, you have to worry about who will be coming in to tour your home throughout the week. Will you hold an open house? Do you take the first reasonable offer you are presented with? Our blog was designed to assist you through the selling process a little bit easier.
When you put your house up for sale with a real estate agent, you must agree to pay a commission if the house sells. This rate is usually around 6%, but this varies. The agent that lists your house will only receive a portion of the commission you pay, and this is why agents typically do not like to negotiate rates. There are times when they might be more willing to offer a lower rate though, but you should not ask unless one of these reasons applies.
Houses Are Not Selling
If you try to sell your house during a period of time when homes are not selling, you might be able to convince an agent to lower the commission on the house. When homes are not selling, agents are not making money. To try to make money, agents may look for more homes to list. If you will only list yours if the agent agrees to accept a lower commission rate, the agent might agree to this.
Your Asking Price Is Low
Another good situation in which asking for a reduced commission is a good idea is if you are planning on selling your home for a very low price. When homes are priced well below the fair market value, they will typically sell really fast. If your real estate agent thinks that your house will sell really fast because of the low price, the agent might agree to list it for a lower commission. To the agent, this could offer a way to get a paycheck really quickly, and this is often worthwhile for the agent even if the commission will be less than normal.
You Are About To Lose The Home In Foreclosure
If you want to sell your home quickly because the lender is about to foreclose on it, you might also be in a good situation to ask for a reduced commission rate. If the lender is foreclosing on your house, you will have limited time to sell it. In addition, you may not have a lot of equity in the home, which means you might not be able to pay a high commission for the sale.
These are three situations in which asking for a reduced commission might be a good choice to make. Keep in mind, though, that the agent may decline doing this. If you would like to learn more about selling your home, contact a real estate agent today, such as those found at ERA Key 1 Realty Inc.-Cindy Frank.
Share30 August 2016
