What Are the Average Realtor Fees and How Can You Save Money?

In 2018, slightly over six million homes were sold (or bought) in the United States. A whopping 87 percent of buyers used the services of a real estate agent or realtor. So, if you’re looking to sell or buy a home, it’s likely you want to hire a realtor to help, and for good reason. These pros will help you close the deal quickly.

But you’ve to pay for their services, which is one of the major reasons some people don’t hire them. Keep reading to learn more about average realtor fees and how you can save money on these fees.

How Much Do Realtors Charge?
There’s no fixed fee for realtors across the country. However, the average is 5 to 6 percent of a home’s closing price. To put this figuratively, if you’re purchasing a home worth $200,000, the realtor will pocket between $10,000 and $12,000. This means you’ll spend at least $210,000 securing the home. And if you were selling, you could earn as little as $188,000!

If money is none of your worries, you’ll have no problem settling the fee. But if you’re like most Americans, you want to make a saving. Here’s how to do it.

It Doesn’t Hurt to Negotiate
If this is your first time in the real estate market as a buyer or seller, you could easily think a realtor’s fee is cast in stone. It’s not. As such, don’t shy away from turning on your negotiation skills. If a realtor is proposing 5 percent, say you can only afford 3 percent. If they don’t balk, fine. You can always shop around for another realtor.

However, most pros will be open to negotiation. If you can get them to drop their fees by a percentage or two, you’ll make a good saving.

Some Realtors Offer Extra Incentives
Competition for clients among realtors is fierce, so everyone is looking for innovative ways to stay ahead of the pack. This is why some realtors offer extra incentives, such as home buyer rebates or refunds.

Because the internet has made it easier for buyers to find homes, a lot of the hard work has been taken off the realtor’s hands. As a result, some are willing to refund a part of their commissions to clients. If you snag this deal, you can keep up to $10,000 of your realtor’s commission, of course depending on the cost of the home.

Image Credit: Alan Cleaver via Flickr CC 2.0 – Real Estate

Make the Realtor’s Work Easier
Although the internet has made the work of buying or selling homes easier, realtors still have lots to do. For instance, they must still show the home (if you’re selling) to prospective clients and negotiate on offers.

Leaving the property so they can organize showings without checking in with your schedule will make their work a lot easier, and the home will sell faster. This way, they’ll be more willing to offer you a good discount on their fees.

Don’t Let Average Realtor Fees Stand in the Way
Buying or selling a home is a complex process with plenty of paperwork. Hiring a realtor to help you is the best move. But with average realtor fees still high, you might decide to go it alone. Lucky for you, we’ve fleshed out a couple of tips you can use to save on the fees. Stay tuned to our blog for more realty tips and insights.