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

You want to sell your house and you’re looking forward to putting some money in your pocket. But did you realize that selling your house may mean you have to PAY money? In this blog post, we break down what are the different fees paid to agents versus paid to investors…

It sounds crazy but selling your house can sometimes mean that you must pay money instead of just collect money. (This isn’t always the case, but it often is.) This post covers some of the different fees you may have to pay when selling to either an investor or an agent. The information here may help you decide whether to work with an agent or to sell your house directly to an investor.

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

Agents make their money by listing houses, finding buyers, and getting a commission. They usually market it, list it on a listing service, and help you with a lot of paperwork. This all takes time and energy, so when they sell the house they get a commission check. Usually, around 6% of the sale price ($6,000 on a $100,000 house) goes to the agent or agents if someone else represents the buyer, and they both get paid by you.

There may be other fees you have to pay as well, and these might include different advertising fees or other costs associated with selling your house. Often agents hire professional photographers to take pictures for your listing, or get a staging company in to lend some furniture to help it sell. Often these chargers come back to you. Sometimes there is a fee to list your house, or there might be a fee to the agent’s brokerage or there might be a fee to get a sign in front of your house or there might be a fee for the title company… the list goes on and on. Your agent should be upfront with you and disclose all the fees when you sign your agency agreement.

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

This is something that often surprises house-sellers. Most investors won’t make you pay anything. They usually cover closing costs (but not always so double check with the investor you are working with), they want the house to need work, and there is no commission since they are not agents. They make money from fixing up the property and reselling it, not from you. Usually, we cover everything except the “Recording fee” at closing, which is only $125 and comes out of whatever we pay you.

The One “Fee” You May Not Be Thinking Of

One cost, we will call it a “fee” for the sake of this article, is only relevant when you list with an agent. Generally an agent will want you to repair the house before you list it, so you will have bills and taxes and utilities for the whole time the agent is looking for a buyer. Although the agent doesn’t get this money, you still have to pay it because of the selling process. When you sell with an investor, they purchase quickly so you end up saving this cost too.

So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell.

If you want to go over this in more detail or confirm that we won’t charge you any fees if you sell your house to us then please get in touch and we’ll be happy to walk you through it.

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 (225) 288-7209.

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