Do You Know The Cost Involved With Using A Realtor?

Published: 25th June 2015
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The worst part about selling a home is trying to figure out if you should use a Realtor or not. There are good and bad thins associated with any choice you make. Many people start with just testing out eh waters, but this can be very dangerous. As an example, people who are just testing the waters will often price their home higher then it actually should be. They think that it will give them room to negotiate. If they find that no one is interested in the home, they will simply not sell the place. What they fail to understand is that there may well be interest in their home. When a prospective buyer is looking at houses if they see a higher price, they will not even look and will instead just move on to the next house. By the time these people realize their home is overpriced and drop the price the people that would have been interested might have already bought another house. You have to remember the decision to sell your house is a business one, not one that should be looked at like a game, and it needs to be handled like a real business deal.

If a person needs a quick house sale, they often believe that selling with a realtor can be the fastest way to sell a house. This is not always the case. It can depend solely on the realtor. If you choose one that is too busy, the listing may be shuffled aside in favor of their other listings. If they are not very busy, they may not show the property because they are not pushed to do so. If they have lots of listings that are different than your type of property, they may be out of touch with the type of person who will want to buy a property in your price range.

The obvious cost for the realtor as a percentage of the selling price may not be the largest cost of doing business with an agent. A realtor will ask for 4%-6% in fees in most cases, but some rare cases may require up to 10% of the selling price by the time additional aid with closing costs is figured. If the property is already priced lower than the mortgage, the mortgage company may not accept an offer than includes fees for the realtor. This could cost a person a potential sale at a critical time. If they are unwilling to reduce their fee to help close the sale, the homeowner could lose out on the only offer they may receive.

Another reason that a Realtor can cost you a sale is because of the requirement many of them have to sign a three to six month listing agreement. After that, they might try and tack on another three to six months to avoid getting cut out of the sale of the house. If an offer cannot be worked out with the Realtor and the fees they are charging, you could also lose a sale this way as well. Realtors of course have expenses associated with showing a house like advertising, signs, and gas so they do not want to be cut out of a sale that they have put their time and money into already. However if the seller finds someone without help from the Realtor should they be penalized by a contract that is not in their best interest.

Signing any type of binding legal agreement should always be discussed with an attorney. If the selling price is on the border of what is owed on the house, the mortgage company might require that they approve the Realtor before a contract can be signed. Talking with all involved parties can stop you from headaches down the road when you are trying to sell the house.

When someone asks 'can I sell my home fast and for cash' they should examine all possible avenues before they make their final decision on what they are going to do. There is a lot involved with this type of transaction so everything needs to be reviewed before any choices are made. You do not want to put yourself into a situation that you are not going to be able to handle yourself.


The biggest challenge is knowing how to sell a house quickly. If you don't know this, you probably won't get far. Visit our home seller blog for information on the cost of selling a house and preparing for a home sale.

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