All clients want to know how much a specialist who provides services in a particular area will earn on it. This also applies to situations when they turn to a realtor – a real estate agent. Moreover, there are a lot of misconceptions in this matter, so it’s worth explaining how much the agent will earn when providing services for the sale of real estate. If you decide to sell the house, then you should read this article to the end.
All sellers are sure that if no one sells a house without a realtor, then you must contact such a specialist to achieve the desired result, and pay for his services. What do sellers think further? Since you still have to pay, it’s better to choose an option that involves paying a small amount or asking for a discount. So, you need to look for a realtor cheaper. Therefore, the first question sellers when meeting with a real estate agent, as a rule, is: “How much are your services?”
An experienced specialist who has professional skills in his field speaks of about $ 30,000 for a house that costs $ 1 million, he immediately hears the phrase: “And in other companies they take less.” Perhaps so, only the range of services may be different. And you should immediately ask about this when asking about the amount for help with selling a house. Plus it’s worth asking about the quality of service.
How are commissions spent?
Consider a specific example with an amount of $ 30,000.
• Commissions paid by the seller – this is a common situation.
• 50% of the money paid by sellers goes to a real estate company that put up an object for sale.
• Another 50% – payment for the services of the company, which subsequently leads the buyer.
Important!
1. Each realtor has individual agreements in the form of a contract with the company in which he works. This contract says what percentage the company takes from each transaction conducted by this realtor.
2. In order to start selling real estate, a realtor needs to send a considerable part of the money to a marketing company in order to successfully sell a house.
What is the result? With a home value of $ 1 million, a realtor does not receive all of $ 30,000, but $ 15,000, from which his company will still hold a percentage.
About the list of services
Many people mistakenly think that the list of services for the sale of real estate is the same. Therefore, you should not pay more. Such confidence often leads to sad consequences. Under the cheap offer is a minimal package of services involving low costs. As a rule, real estate is entered only in the database. Further, a market reaction is just expected or the moment when the seller decides to lower the price.
Companies that offer cheap home sales services are not focused on the quality of service. They earn on quantity. The more people take advantage of their help, the greater will be their income. But, as practice shows, many sellers do not like this option of real estate services.
What do professionals agents do?
It should be noted immediately that all sellers want to sell their property as profitably as possible. But the competition in the market is in most cases high. What does a professional do?
• Solves the issue of creating beautiful photos, attractive descriptions of real estate;
• Makes measurements, a house plan, orders brochures, flyers;
• Organizes shows, holds open house days;
• Attracts buyers with ads in the media and the Internet;
• Post information on websites, publish posts on social networks;
• Prepares documentation in which all the advantages of a particular house are indicated, as well as its individual characteristics;
• Gathers information regarding the location of the property, in particular, what is nearby: schools, parks, shops and more.
As can be seen from the above, the list of actions of a professional agent is very wide. And now we will answer the questions: first – “Will success be achieved when selling a house with this option for the provision of services or in the case of passive sales, as do companies that offer their help for cheap?” and the second – “Is it profitable for a professional to do all this for a small amount of commission?” It is logical to assume that with a professional approach it will be faster and more profitable to sell a house, but you will have to spend more money on it. Of course, the final decision is up to you, as the owner of the house.
By
the way, it must be added that the seller still has to pay 5% GST. Therefore,
if the amount of the commission is 30 thousand dollars, then together with 5
percent the final amount will be 31,500. In this case, the difference of 1,500
dollars is precisely 5% GST, which is withdrawn at the end of the transaction
by a notary.
Still have questions?
Contact us, and we will individually discuss the amount of commission for the
sale of your property, as well as discuss the timing and quality of the
services I provide.