You want to sell your house and you’re looking forward to putting some money in your pocket. But did you realize that selling your house sometimes may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents vs paid to investors…
It’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want to you to know about the different fees you have to pay because this information may help you decide whether to work with an agent or to sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
When selling your house in McAllen, you will enlist the services of a real estate agent to find a buyer. The agent will list your property in the Multiple Listing Service (MLS) and implement various marketing strategies to attract potential buyers.
As a seller, you will be responsible for paying fees to the agent. These fees typically consist of a commission upon the successful sale of your home, which is generally around 6% of the sale price (approximately $9,000 for a $150,000 home). Additionally, there may be other expenses such as advertising fees or additional costs related to the sale process. These expenses could include listing fees, brokerage fees, signage fees, or fees associated with the title company, title research, survey, appraisal, among others. It is advisable to discuss these fees with your agent to gain a clear understanding of all financial obligations.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
This is the part that surprises most house-sellers: for most investors, there are rarely any fees to cover. Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your house. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.
The One “Fee” You May Not Be Thinking Of
There’s one more cost (“fee”) that you might not be thinking of: if you are working with an agent, you will have to fix up your house and clean it to be able to show it to potential buyers and then you’ll be responsible for paying bills, insurance, and taxes for as long as it takes the agent to find a buyer and then to close the deal. The expenses you incurr until the day of closing are called holding cost and if you are working with an agent you don’t know for how long you will have to pay them, since there is no guarantee to close on a certain date nor there is a guarantee to get you a buyer at the price you are listing your property. So although this isn’t a direct fee to the agent, it’s a cost you’ll have to pay because of the agent… yet when you sell the house to an investor, they will buy quickly so you end up saving this cost as well. An investor is ready to buy your house when you are ready so you don’t have the cost related to keeping the property. You save time and money.
So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell.
If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to talk things over and answer any questions you may have in detail. We will also work with you on the date you need to close, can be fast or if you require more time to move we are flexible and can work that out, to a timeline that is convenient for you.