The real estate market is still hot even if experts claim prices are beginning to stabilize. Many people who might have been on the fence about selling their home could be prompted to make the move now. Sellers are often concerned about what they can expect in terms of profit. Read below to find out more about a few issues that can affect profit.
Figuring Out Your Financial Factors
Some sellers make the mistake of figuring out their profit by deducting how much is owed from the selling price. This might not produce an accurate number, however. Your selling price, for example, could be overly optimistic. Be sure and have a real estate agent tour your home and do some number crunching to determine the correct selling price.
Another common issue is sellers that forget to include all the expenses that come with a home sale. Take a look at a few of those below:
- Moving expenses
- Storage expenses
- Closing costs
Real Estate Commissions
Most people realize the value a real estate agent adds to a home-selling situation. They help you price your home appropriately, use their contacts to send buyers your way, market your home to get it in front of lots of buyers, and more. When sellers try to do things without an agent, mistakes can happen. Homes sold with the help of a real estate agent may sell faster and at higher prices because of the professional marketing techniques used by the agents.
However, sellers should understand a bit about the way real estate agents are paid as well. The commission they earn comes out of your profit margin. Here is what to know about real estate commissions:
- Most agents work for a broker and the commission usually is split with that office.
- If two agents work on the sale, one for the buyer and one that represents the seller, the commission is split between both agents.
- Commission percentages vary. They are often based on the agent's location, years of experience, and success in selling. While commissions can be negotiable, only certain situations could call for the agent to accept less. For instance, if the home sells very quickly or the selling price of the home is extremely high, they might be willing to accept less.
In most cases, agents don't walk away with the full commission. They must pay for their own expenses like gas and office supplies.
For more information, contact a local selling agent.Share