“Don’t you feel 6% is a lot of money for an agent to make when they sell a home?”
Answer:
Not much.
I understand how you feel. And the truth is, I agree that many agents don’t deserve what they charge. But consider the following:
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.
2. Agents don’t make keep the entire fee as profit. From the 6% fee you mentioned, that may be split 3%/3% between the seller’s and buyer’s agents. From that, they split with their broker and pay expenses. The typical agent takes home 1% to 2%. (After expenses, I usually make below 1%…definitely not 6%)
3. Homes sold with good agents sell for 5% more on average. So the true net cost to you as a seller is only 1% to use an agent.
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.
5. A 2001 survey said only 35% of “by owner” sellers would do it again.
Note: Fees and fee “splits” above are examples. Real estate fees are not set by law.
