| When it is time to sell your house, there are lots of | | | | matter what they say or what you've heard it is |
| things to consider. When do you want to move? | | | | negotiable. If you don't ask for a price reduction on |
| How much do you want to sell your house for? | | | | commission agents certainly won't offer it. |
| Where do you want to move? Are you upgrading or | | | | Take this into consideration. Let's say the average |
| downgrading? Which real estate agent should I use? | | | | house price in a large city is $300,000 and you want |
| Oh and how much commission should I pay the real | | | | to sell. Your agent say's 7% on the first $100,000 |
| estate agent. | | | | and 3.5% on the rest. Well this works out to $7,000 |
| First of all you have to decide whether you are going | | | | plus $7,000, a grand total of $14,000 in commission. |
| to use a real estate agent to help you sell your | | | | Seems like a lot of money, well it is. How about 5% |
| house or try and go at it alone. There are benefits | | | | on the total sale of your home, this works out to |
| and disadvantages to doing both. The main benefit of | | | | $15,000 in commission. Now you say to your agent |
| using an agent is exposure; they have the resources | | | | that you would like to negotiate their commission |
| to expose your property to the world essentially. | | | | rate, and you get your agent to come down 1% on |
| The main benefit of selling your home on your own; | | | | the total sale price. You have just saved yourself |
| is saving a hefty commission cost. If you want the | | | | $3,000, it might not seem like much on a $300,000 |
| benefits of using a real estate agent and saving a bit | | | | dollar home, but it sure comes in handy if you need a |
| of money ask for a cut in commission. | | | | new fridge and stove. |
| Like with any large purchase, a car, an engagement | | | | When you are ready to sell your home, and you |
| ring, a home theatre system, all worth taking the | | | | decide to use a real estate agent to help you |
| time to negotiate the best price, even if you have to | | | | through the process, be sure to negotiate the |
| shop around. Finding a real estate agent is no | | | | commission rate. It may seem insignificant and |
| different. Why not take your time shop around, | | | | tedious, but a 5 minute conversation may save you |
| interview at least 3 agents and find the best price. A | | | | thousands of dollars. |
| little known fact about real estate commission, no | | | | |