What’s the main goal of any buyer or seller? To get to closing and settle their home buying/selling process as smoothly as possible, right? But, what about the cost to make that happen? It’s time to address the elephant in the room…commission. The way real estate agents get paid is through commission, but only if the transaction goes to closing. I’ll break this into two sections for understanding: the buyer side and the seller side.
The Buyer Side
When you decide to work with a real estate agent or REALTOR®, you are making the decision to better your process in buying a property. They are experts in the real estate industry that are supposed to represent you and YOUR best interest from start to finish. If you were to go through this alone and call an agent that has the home listed (representing the seller of that home) that you are interested in, you are doing yourself a disservice. They have an agreement with their sellers that they will have their interests in mind during the transaction. Having an agent to work with will minimize the risk associated with purchasing a property. When it comes to paying the real estate agent you’re working with, that gets done at closing and typically from the proceeds the seller receives at that time.
The Seller Side
When it comes time to list your house and you’re narrowing down who you would like to list your property with, hopefully you are not only thinking about what you’ll have to pay. Commission is paid by the seller at closing and would come out of the sale price of the property. It may be reflected as a percentage or as a flat fee. According to Bankrate, commissions range from 5-6% and are negotiable. While this may be true, there are many other things to consider when you evaluate an agent (which I’ll leave up to them to discuss with you through what is called a listing presentation). You may have seen “For Sale by Owner” signs in the yards of homes. Most people going this route may have been turned off by the fact that they have to pay a commission. Before you decide to go on that route alone, find out what all goes into selling a home and think about what it looks like in the eyes of a buyer who has a REALTOR® working with them. They may prefer a home that is listed with an agent simply because they know the transaction is more “safe”.
Buying/selling a home is the biggest transaction most of you will complete. Having proper representation can have a major impact on your buying or selling process. Check out our blog on Choosing a REALTOR® to help you prepare for your search.
“Buying a home is a piece of cake”-said NO ONE ever
If you are thinking about purchasing a new home, you’re in the right place to start! Our website is an amazing place for all things buying (and selling, but we are focusing on home buyers for this blog 🙂 ). You’ll need information on securing a mortgage, what type of home interests you, who will be your buyer representative, inspections, appraisals and SO much more! If you’re already getting overwhelmed, just breathe-it will be OK.
This all seems so complicated because you may not be a real estate professional. Going through the home buying process on your own seems ideal, at first. You don’t have to talk to a pushy sales person, go to meetings and it’s all on your own time. What if I told you you could get all of those positives WITH a real estate agent? It comes down to one of your first decisions on who you end up working with. Your REALTOR® (remember not all real estate professionals are REALTORS®) should be someone who is there for YOUR best interests, not their own. Pushing you into a sale should not be their priority. You should be asked how you prefer communication and when time is most convenient for you. Another plus you probably did not know is that you may have signed a contract to work with the said REALTOR®, but typically you are not the one paying them for their services! In most cases, the seller of the home you’re purchasing is the one paying their commission.
I spent a lot of time talking about working with the right professional in the industry because that’s truly where you should begin your journey in purchasing a home. They are trained and licensed to help you from beginning to end of the real estate transaction. Choose wisely, it’s an important decision to make-call around, interview, see who will work best with you.
So, here are some tools to put in your home buying toolbox and of course, call or visit us for any questions or concerns-we would love to hear from you:
Have you seen us use the hashtag “#HumansOverHouses” ? An article came out about our brokerage that just might give you insight as to why we use it. RISMedia, the leader in real estate information, interviewed the CEO, James Dwiggins, of NextHome for their September magazine. It is titled, Humanizing Real Estate: How NextHome Bridges Technology and People-which is spot on if you ask me!
In the article Dwiggins explains how the company has grown in the past year and the accomplishments the business has made along the way. They say that multiple sources have discovered that the culture with NextHome is nothing anyone has seen before in real estate. Dwiggins explains, “Being a “NextHomie” means you bleed orange, put others before yourself, and deeply care about the buyer and seller experience. The idea-sharing and drive to help each other are the best things about our NextHome members.” He goes on to say, “For us, it’s about creating a professional, collaborative, community-based organization that truly cares about people,” hence our humans over houses phrase. It is always more than meeting a company quota or seeing how many deals we can close within a period of time. It is about the people, our clients.
As you see, being a NextHomie is more than being a real estate agent. We are a family of professionals that pride ourselves on providing top of the line services to each of our clients. The NextHome company itself has been nothing short of amazing in what they offer to each agent in their brokerage.
I guess you could say I’m a proud NextHomie. 🙂
*Interested in reading the full article? CLICK HERE.
At the end of the day, we are focused on serving the humans buying and selling real estate. – James Dwiggins, CEO, NextHome
For the majority of home buyers, finding the right property is the most difficult step. Searching for a home when you have children makes it even more strenuous. The filter tab gets more specific and the number of homes available in your search perimeters get smaller and smaller. According to the National Association of REALTORS®, 53% of buyers choose a neighborhood based on school district and and 50% choose a neighborhood by convenience to the school itself.
If you are a parent trying to find the perfect home for you and your family, NextHome Custom Realty provides great technology for you to search specifically by school district, commute time and more through the Mobile Connect App or use the Home Search tab on this website.