Comparing Ways
To Sell a Home
With the aim of protecting home buyers and sellers, government regulators are cracking down on the commission practices of real-estate boards and brokers, The Wall Street Journal reported Monday. Helped by the surging housing market, broker commissions on new and previously occupied homes last year totaled $61 billion, up from $42.6 billion in 2000, according to industry estimates, the article said.
WHAT TO DO: Real-estate brokers' commissions typically range from to 5% to 7% of the sale price, says Real Trends, a real-estate consulting firm. Read about the ins and outs of commission rates, alternatives to full-service brokers, and trends among online brokers and their pricing. See tips for negotiating the commission; some brokers charge by the hour, which may be cheaper. Some realtors are using rebates on commissions to attract clients. This RealEstateJournal.com article examines other selling options. If you're considering listing the property yourself, review some caveats and steps to take, from Bankrate.com.
Comparing Ways to Sell
| Do-It-Yourself | Pros: This is the cheapest way to sell a home. No commissions means more money in your pocket at closing. Cons: You're on your own for everything, from advertising and home showings to contracts and open houses. All paperwork and title transfers must be done by you and the buyer. |
| Discount/
Flat-Fee | Pros: Cheaper than a full-service broker. Usually allows you to pick and choose service offerings that you need. Cons: May not include all of the services that you need. If the home sells through the Multiple Listings Service, the flat-fee goes out the window because you have to pay a co-broker fee to the person who found the buyer. |
| Full-Service | Pros: Handles the entire process -- from concept to completion. Takes care of open houses, advertising, signs and other things that a discount broker may or may not handle for you. Cons: Most expensive way to sell your home, typically 5% to 7% of selling price. |
| Source: RealEstateJournal.com |
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