Cha Ching!! Lets be honest, that is what you where thinking when you consider selling your house. Chances are you probably have already made plans for all the proceeds of selling your home mentally. right? Things like a new bigger home or maybe a family get a away from the hustle and bustle of every day life in El Paso. I know I would already be planning what to do with the proceeds but lets slow down for a minute. Although you can make a nice profit not every dollar goes back into your pocket. What! thats probably your next thought. Well you do have to pay the professionals who help you sell your property. The real question -- how much is this going to cost me?
As a home seller you can plan on paying your listing agent in El Paso on average of about 6% of sales price. The average sales price in El Paso is about $150,000 so lets use this number as an example. On a %150,000 home that amount is roughly $9000.
Seems like a lot of money but I promise, you are not getting ripped off. Lets take a look at where this money goes and why it is worth hiring a listing agent.
Real Estate Agent commissions
Having a good listing agent is important. Why? Well, many sellers find themselves confused about the high percentage paid to an agent just to sell their home. A good listing agent will be able to explain in detail of where that 6% listing costs go.
So here is the break down. 3 % of those 6% will go to what is called a buyers agent or a Realtor who represents the buyer in the transaction. The remaining 3% remains with your listing agents brokerage. The Broker and the listing agent will split that 3% based on what they agreed upon prior to your listing agent joining the brokerage. The same goes for the buyers agent and their Brokerage. Lets take it one step further.
Lets say your listing agent and his/her Broker decide to split the 3% 50/50. To simplify this lets say 3% is $4500. So the Broker splits 50/50 with your listing agent. That leaves the listing agent with $2750 and the Broker $2750. So at the end of the day your listing agent takes home $2750 of those $9000 listing fee minus marketing, photographer and any other advertising he/she spent on selling your home.
Sellers in the El Paso market tend to pay anywhere from 3-4% in Seller contributions. Why you may ask? Well in El Paso we are in what is called a Buyers Market. What is a Buyers Market? El Paso has a overflow of inventory form resale homes to NEW homes. Buyers have a huge list to choose from so they expect sellers to pay. Don't get discouraged this is a very much negotiable item on the contract. Other closing costs that apply or items like title review, survey updates, past due property taxes to name a few.
Is It Best To Sell Your House On Your Own?
With all these costs associated with selling your home why wouldn't you as a home owner want to sell on your own. Right?
Well even if you did try and sell on your own, you would still have to pay a buyers agents brokerage fee -- remember that 3%?
Lets consider why having a listing agent on your side is important:
Marketing, signs, advertising and professional photography
Home Owners are busy working, taking care of kids - soccer practice, football, basketball, ballet, dance class, homework, dinner.. should I keep going on and on? no right. With an agent they can take out that " one more thing" on your schedule. Listing agent manage calls on your home, showings, open houses. They will draft up the documentations and conduct the negotiations.
Legal protection that comes with working with a licensed listing agent.
Market knowledge to wisely price your home.
Negotiating skills to get you the best terms and price from a buyer.
A database of potential buyers through listing your home on the MLS - Multiple Listing Services. Each city has one exclusive to all licensed agents.
Using a listing agent that has access to other agents with potential buyers of their own.
So having a listing agent is very well worth the cost. Before heading down the home selling path, think long and hard about what value a listing agent brings to the equation.
If your looking to sell and/or still have questions please feel free to contact me direct through email. [email protected]
You can also find out what your home is by going to my link below.
Author:Silas Baca Phone: 915-497-3398 Dated: February 9th 2017 Views: 133 About Silas: ...
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"Working with eXp Realty was a pleasure. When we started, we had no idea what we wanted, but our buyer agent helps us figure out the pros and cons of all our options. Our agent went the extra mile willing to put in the extra effort to answer our questions, to make sure we were happy with our decisions, and educated about the market and local area."