You Don't Pay High Commissions: Here's Why

By
Real Estate Agent with Royal LePage Atlantic NSREC# 9421

Why you don't pay high commissions:House for Sale

Are you the original owner of a 40 year old house or the average homeowner who buys and sells every five years? If you said, the latter, you won’t pay as much as you may think.

It’s the original owner who pays the bulk of the commission paid out. Subsequent owners are really only paying commission on the equity obtained over time. For example, a homeowner sells their house for $200,000 and includes $10,000 (5%) in the purchase price. The buyer doesn’t pay for any real estate fees for their services they obtain through the process because it’s paid by the seller. They then sell a couple years later for $250,000 and includes $12,500 (5%) for real estate services. $10,000 of that money was already included in the house so essentially $2,500 is coming out of the homeowners’ pocket for all the services required for both sides the transaction.

Purchase a house in 2010

 $  200,000.00

5% Commission included

 $    10,000.00

Selling the same house 2014

 $  250,000.00

5% Commission to be included

 $    12,500.00

Less Commission already built into the house

 $    10,000.00

Actual Commission to sell

 $   2,500.00

So when you consider selling your house and deciding how you’re going to navigate the transaction, base your decision on qualifications, skills and experience not paying fees.  In the end, you get what you pay for which in a resellers' case, a pretty good deal at 5% for a qualified, experienced, full service real estate consultant who can negotiate a great deal that will more than pay for your commission fee. 

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Signature
 Tina Parker
 CNE®, CSP™, SRES™, REALTOR®, RedM

   

Halifax - Bedford - Dartmouth - Sackville - Hammonds Plains
Nova Scotia

Call or Text: 902-229-5799 | Email | Visit my Website

Do Your Own Home Staging 

Tina is author of the book, "Do Your Own Home Staging" and news source for the media.

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Topic:
Home Selling
Location:
Nova Scotia Halifax County
Groups:
Realtors®
Nova Scotia Real Estate
Tags:
selling a house

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Tina Parker

CNE, REDM, SRES, CSP Home Staging REALTOR, Halifax
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