The worst part of buying and selling property is the out-of-pocket expenses. After agreeing to take on hundreds of thousands of dollars of debt and pay the majority of your income every month to a mortgage, you still get stuck with a few thousand dollars in closing costs, a down payment, and the realtor commission. When we decide to purchase a house, we’ve already wrapped our heads around the debt and monthly mortgage payment. Our biggest barriers become these expenses. There are a few ways to reduce closing costs such as certain grants, financing options, and splitting the fees with the buyer or seller. You can even reduce the down payment with certain loan programs or by having a great credit profile. But what about these realtor commissions . . . How much are they and how do we reduce them?
A realtor is paid a commission of a percentage of the total sales price. The percentage is typically 5-6%. For property that’s selling for $250,000, the commission comes out to $12,500 – $15,000. That’s a huge expense to pay out-of-pocket. The good news is that it can be reduced significantly.
A realtor handles the marketing of a house, finding either prospective buyers or sellers, showing the house, and filling out the paperwork. To reduce the charges of a realtor, you have to be willing to do some of these jobs yourself. However, most people don’t know how to legally transfer property and don’t have quality forms to protect their legal interests. These are tasks that you still want someone to help you with. The good news is that you don’t need a realtor for these. A real estate lawyer can help you legally transfer property and provide quality forms to protect your interests.
How do you replace a realtor for the other tasks? If you are a seller, you may already know someone who is interested in buying your property. If not, you can post information about the property on online sites like Zillow. Buyers can find prospective houses for sale on these sites as well. To conduct a walkthrough, simply make a list of all the rooms in your house and then list all of the important features in those rooms. These features include appliances, electrical work, flooring, and aesthetics. When you finish your list, you can use it as the itinerary for your walkthrough with the prospect.
There are three major benefits of choosing a real estate agent over a realtor. First, you don’t pay a commission. This means that you don’t have that massive out-of-pocket expense to deal with. Second, the real estate attorney will likely charge flat fees. This lets you know exactly what you are paying at all times, and allows you to keep any profits made from negotiating a better price. Third, you will build a relationship with an attorney. This is useful for many different reasons including future property transactions or a future issue with the property you are currently buying or selling.
You can receive these benefits today and easily get in touch with a real estate attorney. Simply contact me today. I am here to help.