What Are The Different Fees Paid To Agents Versus Paid To Investors?

You have the desire to sell your house and are hoping to generate some profit. However, it’s important to be aware that selling your house could potentially involve expenses rather than a monetary gain. In this blog post, we will explore the various fees associated with working with agents versus selling directly to investors.

Indeed, it is true that selling your house can sometimes result in financial obligations. (Although this is not always the case, it frequently occurs.) We want to ensure that you are well-informed about the different fees involved, as this knowledge can help you make a decision on whether to collaborate 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 serves as a salesperson and their primary objective is to find a buyer for your house. To accomplish this, they will enlist your house in a listing service and employ various marketing strategies to attract potential buyers.

However, it’s important to note that engaging an agent entails certain fees. These fees typically include a commission if the agent successfully sells the house. This commission is usually a percentage of the sale price, commonly around 6% (equivalent to $6,000 for a $100,000 house). Additionally, there may be other expenses associated with selling your house, such as advertising fees or costs related to the agent’s brokerage. These expenses can include fees for listing your house, fees for placing a sign in front of your property, fees for the title company, and more. The specific fees can vary, and it’s advisable to discuss them with the agent, as they should provide you with detailed information about these costs.

What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees

This is the aspect that often catches house sellers off guard: when dealing with most investors, there are typically no fees to worry about. Investors typically cover all the expenses associated with selling. Moreover, there’s no commission to be paid since investors are not acting as agents and thus not listing your house. However, it’s worth noting that you may still be responsible for closing costs, although this varies depending on the investor. It’s important to clarify with the investor who will be responsible for covering those costs.

The One “Fee” You May Not Be Thinking Of

There’s an additional cost or “fee” that you may not have considered: when working with an agent, they will likely require you to make repairs and improvements to your house, and you’ll be responsible for ongoing bills and taxes until the agent finds a buyer. So, while this isn’t a direct fee to the agent, it is an expense you’ll have to bear due to their involvement. However, when selling your house to an investor, they typically purchase the property quickly, allowing you to save on these costs.

Determining the right approach for you depends on how much you are willing to pay and how urgently you need to sell.

If you would like to discuss this in more detail or verify that we do not charge any fees when you sell your house to us, please reach out to us. We’ll be glad to provide further guidance and support.

We’re happy to give you more information about our buying process and to share with you exactly how it all works. Click here and enter your information or pick up the phone and call us at (916) 500-7355.