There are a fair number of costs associated with selling a house. Yes, that’s right–buyers aren’t the only ones spending money on real estate transactions. They just spend more of it. Sellers are usually on the hook for paying commissions. Commissions are how real estate agents get paid for all the work they do. But do you always have to pay them?
Traditional Buyers Usually Use Agents
Most traditional buyers rely heavily on real estate agents. They aren’t prepared to do all the leg work and navigate all the minutia involved in real estate transactions themselves. Neither are most sellers, for that matter. As such, buyers and sellers who operate within the traditional sphere of real estate transactions use real estate agents. In these cases, you should expect to pay agent commissions.
Cash Buyers Sometimes Use Agents
Not all buyers rely on lenders to finance their purchases though. Some already have the money to pay for your property. These cash buyers are typically either moving from a place with a higher cost of living to somewhere with a lower cost of living, or they’re buying properties as a way to invest their money. The former will often use agents. Aside from where the money to pay for the house comes from (and any changes that happen because there isn’t a lender involved), there isn’t usually much difference between traditional buyers and these cash buyers. You’ll usually pay commissions when selling to them.
Professional Home Buying Companies Don’t Use Agents
A certain subset of cash buyers, professional home buying companies, don’t use agents. These cash buyers are real estate professionals in their own right and have developed a streamlined, efficient system that makes it easy for them to buy houses and for sellers to sell them. Not only do these companies not use agents, but their process is simple enough to navigate that sellers don’t need them either. If you sell your house to a professional home buying company like WNY Home Buyers, you won’t have to pay a penny in commissions–there won’t be any agents to pay.
Whether or not you have to pay commissions depends on who you sell your house to and whether or not you or your buyer utilize the services of real estate agents. If agents are involved, plan to spend 3%-6% of the sale price of your house on agent commissions. If you prefer to save that money instead, professional home buying companies like WNY Home Buyers are the way to go.
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