Real Estate Agent Fees

Too often when selling a house, the focus shifts from finding the right buyer to how much will be paid in real estate agent fees. A lot of homeowners end up making mistakes because of this approach. Real estate agent fees are a fact that you have to face if you are going to use a real estate agent to sell your house, but this cannot be the driving factor. Unfortunately, too many people have a notion that real estate agents should not charge as much as they do.

The more important thing is to focus on a real estate agent who can help sell your house fast and for the best price available in the market. Cheap real estate agents are not usually known for this. They are able to charge less because they don’t use all the available tools to help find buyers. They may also be looking to gain experience – they charge less so that they can get enough customers to cut their teeth on.

This does not mean that an expensive real estate agent is necessarily the solution. You should be aiming to find someone who has a reputation of getting houses sold fast and getting good prices even when markets are not very good.

You should also familiarize yourself with what the different kinds of real estate agent fees are. For our purposes here, there are 2 kinds, fixed and variable.

Fixed Real Estate Agent Fees

This kind of payment is agreed upon before the house is sold, and it is a fixed amount that doesn’t change no matter what the house fetches. At once, you can see the pros and the cons of this way of paying. The pro is that you know in advance what you are going to pay.

The other is that should the house fetch more than you anticipated, you will walk away with a bigger profit. But what happens if the house sells for lower? You will have to suffer the losses while the real estate agent gets to take home his payment.

It is also a method that doesn’t motivate agents to work very hard; after all, they will be paid whether or not they deliver. This kind of payment is reserved for agents who have a very high success rate; since they are known to sell most of the houses brought to them, and they fetch good pries, you can expect that they will deliver.

Variable Real Estate Agent Fees

With variable fees, you pay the agent a commission based on a percentage of how much he can get to sell the house. The percentage is negotiated in advance and it can be anything. This method of payment has one major advantage: agents are motivated to work hard to find buyers who will pay more.

Other costs

Real estate agent fees are not the only ones that are involved in the transaction. You can expect to pay varying commission rates depending on where the house you are selling is located, as well as the value of the house. A $300,000 house in the city suburbs will fetch a higher commission than one that is farther away from the central business district. If you are not sure what to expect, you can contact us at to get an estimate based on the value of the property and the location. There are also calculators online that you can use.

You should also expect to pay some marketing costs if you want to find a buyer quickly. These will vary depending on the medium of advertising and marketing that you should choose, but this is a small amount compared to the amount of money that you will pay a real estate agent. The marketing budget usually goes to the real estate agent, so be sure to include him when you are deciding on the kind of marketing that you want.

If you are looking for a real estate agent who is highly effective in getting buyers and good prices, contact us at