You want to sell your house and you’re looking forward to putting some money in your pocket. But did you realize that selling your house may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus those paid to investors…
Maybe you heard from a friend or from reading online that a real estate investor in Metro Detroit can get you a better price or maybe you heard a real estate agent can get you a better outcome when selling your Detroit MI home. Well, both can be true depending on your circumstances. You must consider what are the different fees paid to agents versus paid to investors. Then you must consider other factors including the time you need to get it to sell, if you want to have inspections and lengthy negotiations, if you want all the potential buyers looking through your stuff, etc. This article will dive into the fees you will have to pay to help you decide which option to choose.
It’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want you to know about the different fees you have to pay because this information may help you decide whether to work with an agent or sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
An agent is a salesperson and they will try to find a buyer to buy your house. In order to do this, they will list your house in a listing service and use various marketing efforts to try and find a buyer.
So you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house or about $6,000 for a $100,000). There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house. There might be a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. You can ask the agent about these and they should tell you.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
This is the part that surprises most house-sellers: for most investors, there are rarely any fees to cover. Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your house. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.
The One “Fee” You May Not Be Thinking Of
There’s one more cost (“fee”) that you might not be thinking of: when you work with an agent, they’ll get you to fix up your house, and then you’ll have to pay bills and taxes for as long as it takes the agent to find a buyer. So although this isn’t a fee to the agent, it’s a cost you’ll have to pay because of the agent… yet when you sell the house to an investor, they buy quickly so you end up saving this cost as well.
So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell.
If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to walk you through it.