Selling Your Home

Facts About Real Estate Commission

Facts About Real Estate Commission

How to realtors get paid? Who pays the broker fees? How do real estate commissions work? Read on and get the facts!

Anytime a home is listed on the MLS someone signs what is called a listing agreement. Inside a listing agreement, amongst other things, is a clause that lays out how much a LISTING AGENT (the agent selling the property) and the BUYER’S AGENT (the agent who brings the buyer) will each be paid. The seller of a piece of property pays out of their proceeds both the listing and buyer’s agents.

All REALTORS through our system of cooperating brokerages agree to abide by the real estate commission split for a property based on that properties listing agreement. Simple right?

So what happens if you don’t have use an agent to buy your property? You should save money because the seller isn’t having to pay two agents right? WRONG!!!!!

If there is no cooperating broker then the LISTING AGENT winds up making double the money because they wind up acting as a DUAL AGENT which means instead of each party having a licensed REALTOR advocating on their behalf you have ONE REALTOR acting as an advocate for both parties.

Now is this a bad thing? Not always, some agents walk the tightrope very well between two parties but to make a legal analogy it’s like one lawyer showing up to represent the plaintiff and defendant in court and because of this in order to act as a DUAL AGENT both the seller and the buyer must agree to allow that agent to do so.

So what should you make of all this? If you are shopping for a piece of property, be it a house or vacant land, find a great REALTOR and use them! Find a REALTOR that is attentive to you, takes your calls, is knowledgeable about the area, communicates well, is loyal...

Why You Should Consider Selling in the Winter

Selling In Winter Attracts Serious Buyers

The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.

Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.

Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.

Bottom Line

If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.