What Are The Different Fees Paid To Agents Versus Paid To Investors?

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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 may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus 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 can be.) 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.  That situation depends upon the value of your home versus what you owe on the home and the costs that a seller normally pays when they sell their home for a retail price.  That cost typically runs 10-13% of the sales price and does not include anything like repair costs or things that a buyer might ask as retail seller to pay for such as minor repairs.

What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees

An agent is a salesperson and they will try to find a buyer to buy your house. In order to do this, they will list your house in a listing service and use various marketing efforts to try and find a buyer.

So you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house, or about $6,000 for a $100,000). There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they should tell you.

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.  We pay the closing costs on almost every home we buy.  That is part of our discussion.

The One “Fee” You May Not Be Thinking Of

There’s one more cost  that you might not be thinking of: when you work with an agent, they may suggest  you to need fix up your house and then you’ll have to pay bills and taxes for as long as it takes the agent to find a buyer. So although this isn’t a fee to the agent, it’s a cost you’ll have to pay to get the retail price for the house … yet when you sell the house to an investor, they buy quickly so you do not have to repair the house but that affects the price the investor pays you.  Since the investor will spend the money to fix the house, they make their offer considering that cost they will pay.

So what’s right for you? It depends on how much you’re willing to pay to get a higher price 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 walk you through it.  When you speak to a company like ours Rescue Real Estate Help you can get both scenarios as one of our managers is a real estate agent so has the ability to run both figures for you so you have the full picture of what is the best option for your situation.

We’re happy to give you more information about our buying process and to share with you exactly how it all works. Click here and enter your information or pick up the phone and call us at (210) 951-9511.

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