Total Cost of Hiring a Realtor

This is it. You’re on the brink of making what’s possibly one of the biggest decisions (and financial transactions) of your life–do you do it solo, or do you hire a professional? Real estate, especially in Encinitas, can be uncharted territory for many, and having an experienced Realtor is not only worth it, but could save you money in the long run.

How Much Does It Cost to Hire a Real Estate Agent?

No doubt, the idea of taking on jargon-heavy agreements and handling all the big costs alone can be a scary prospect, which is why 89% of homebuyers choose to work with an agent. But how much can you expect to spend overall?

Real estate agents do not, for the most part, charge an upfront fee or work billable hours, but instead take a commission from the sale of the home. Typically, the standard commission rate is 5-6% of the total price, split between the buyer’s and seller’s realtors involved in the transaction.

How does this work? Let’s say you’re selling your home for $400,000; basically, $24,000 would be paid in total commission, with both buyer and seller agents receiving around a $12,000 cut respectively. The incentive is definitely there, and their payment is affected by whether or not they do a good job.

What Services Does a Realtor Provide With the Commission?

You’ve just hired a real estate agent with savvy and know-how, but there’s a lot more to what they do than just posting a sign in your yard and hoping for the best. A good agent will handle a multitude of tasks for you, including:

• Market Research: The housing market is in a constant state of flux, your realtor will do the homework to lock in the best and most competitive price possible.
• Home Staging: There’s an art and science to staging your home for potential buyers, an agent will guide you on what looks (and works) best.
• Wider Exposure: For maximum exposure, realtors post homes on a Multiple Listing Service (MLS) database to ensure you get the best price within a short amount of time.
• Open Houses: Realtors book home viewings and meet with prospective buyers to negotiate the optimum deal.
• Paperwork: There’s mountains of it, and realtors make sure all contracts are properly signed and 100% legal.

If you’re buying a home, a real estate agent will also handle:

• Searching: Agents study the homes where you plan to live and find listings that match your needs within the price range you’ve chosen.
• Negotiating: With seasoned experience, realtors know how to negotiate competitive offers with ease.
• Inspections: They can organize a home inspection on the potential property to make sure there aren’t hidden damages and you’re paying a fair price.

Save Time and Money

Going “DIY” is more popular than ever, and the idea of selling your own home may be an appealing one, especially not splitting the sale price. But this isn’t exactly fixing a sink or a toilet, the real estate market is complex, intricate, and selling on your own could mean complications and many needless migraines.

Hiring a real estate agent can not only help in obtaining the best price for your home, but they understand current market trends and can avoid legal snags and big, costly mistakes down the road–reasons that cover any of their fees in spades.

Hire the Right Agent for You

It may seem like just another additional cost, but a good realtor will more than pay for their commission fee when you’re not pulling your hair out over a housing market that’s ever-changing, or negotiating over legalities and indecipherable paperwork. Hiring an agent means you can focus on what’s important, and keep your sanity!

If you’re interested in finding a real estate agent in Encinitas for an upcoming home purchase or sale, contact Linda Moore today!