If you’re a first-time home seller, there’s a high chance that you don’t know exactly what a real estate commission is. This is completely normal, but it’s necessary to learn and understand the details in order to successfully sell your home.
A better understanding of commission fees in real estate can save you thousands of dollars during the home selling process. That’s money in your pocket–money that you can invest in a new home, in your kids, or in your dreams.
So keep reading for a detailed unpacking of commission rates in Texas, and why selling your home to Lisa might be the answer you’ve been looking for.
What is a Real Estate Commission?
Simply put, a commission is how real estate agents get paid. Both a home seller and a home buyer typically hire an agent. And the commission comes out of the selling price of the home and gets divided between the two agents.
Instead of charging a flat fee, most agents charge a percentage. This is what we’re talking about when we refer to the real estate commission. This percentage varies state by state, but in Texas, it is usually about 6%.
What’s the big deal? 6% doesn’t sound like very much money. But you need to think about what that 6% translates to in regard to your home’s sale price.
Let’s say your home sells for $350,000. 6% of that selling price is $21,000! That is a lot of money that you are simply forfeiting when you hire an agent.
Granted, not all of that money goes directly into your agent’s pocket. They have to pay their brokerage and cover their expenses.
But it doesn’t really matter where the money is going. These real estate fees are costly amounts that come directly out of the sale of your home. This is money you should get to keep.
What Other Fees Should I Expect?
If you have been looking into selling your home, you have probably realized that there are more fees to pay than just the commission. You’ll also have to pay closing costs and repairs.
Repairs can end up being very costly. Most real estate agents will encourage you to make repairs and upgrades in order to increase the sale price of your home. And you’ll feel compelled to do those things, in order to make up for the high commission fees you know you’ll be losing off the top of your home’s sale price.
But if you’ve ever done a home remodel, you know that these costs can add up fast. Is it really worth spending all of that money and effort on a home you’re just going to sell? The answer is no–keep reading to find out why.
Can I Avoid High Commission Fees By Going the FSBO Route?
There are a couple of ways to avoid paying such high commission fees. One of these ways is For Sale By Owner, also known as the FSBO method.
FSBO is exactly what it sounds like: you are selling your home without the assistance of a real estate agent. If you have a lot of time and have done a lot of research, this method can pay off. But there are some definite downsides to FSBO.
For one, you have to put in a lot of legwork. You have to learn how to market your home, how to list your home, and how to stage your home. You also won’t have any help when you get to the legal closing phase.
Additionally, if your home needs some repairs or upgrades, you’ll still have to make these changes in order to fetch a worthwhile price on your home. Altogether, this can make selling your house a full-time job that lasts a year or more!
If you’re on a tighter timeline, or if your home needs a lot of work, there’s a better way.
So How Do I Avoid Paying Such High Commission Fees?
Lisa Buys Austin Houses is a great way to avoid high commission fees, without having to assume all of the legwork associated with selling a home. Simply fill out a form telling us about your property, and we will follow up with a quick phone call about your property goals. We will then send you our cash offer for you to accept.
Within the course of seven days, you could have a fair cash offer on your home. You won’t have to pay tens of thousands of dollars on commission fees, nor will you have to pay closing costs. This is the best way to avoid high commission fees without also taking on the extra work of selling your house by yourself.
Additionally, we buy homes as-is. There’s no need to embark on full-scale remodels or costly upgrades. We look to see your home’s true value and offer you a price based on its true potential.
A Commission-Free Home Selling Experience
There’s a lot that goes into a real estate commission. Hiring an agent will cost you thousands of dollars in Texas, but not hiring one resigns you to endless work and repairs. In Austin, there’s a better way.
Reach out to our team at Lisa Buys Austin Houses for a quick, fair, cash deal on your house. You can save money and time by selling your home as-is. Use the money you save on commission fees to begin the next chapter of your life.
Fill out this form to get a callback from one of our team members today!