Real Estate Fees:
You Realtors are overpaid and make way too much money! When I sell this summer there’s no way I’ll pay all that. I’d like to have your job. Why should a Realtor make 6% profit when all you guys do is run some ads, stick up a sign, and wait for someone to buy the house?”
***ANSWER:
I understand how you feel. And the truth is, I agree that many agents don’t deserve what they charge. But let me just clarify a few things:
1. If your home doesn’t sell, your agent doesn’t make a nickel. But they’ll have spent hundreds or thousands on marketing, servicing, overhead, & more. And that adds up to a lot more than you may guess.
Truth About Fees
2. Agents don’t make a 6% profit. From a 6% fee, the buyer’s and seller’s agent each GROSSES 3%. From that, they split with their broker and pay expenses. The typical agent takes home 1% to 2%. (My personal profit margin is < 1%...not 6%) More In Pocket
3. Homes sold with agents sell for 5% more on average. So the true net cost to you as a seller is only 1% to use an agent.
Selecting a Broker
4. There’s WAY more to selling a home than a sign and an ad, such as: how to prepare the home for sale, correct pricing, marketing, selling, negotiating, contracts, disclosures, managing the transaction, and protection from legal liability.
Agent Questions
5. A 2001 survey said only 35% of “by owner” sellers would do it again.
San Diego Home(s) FSBO Report
