Building your home

The Value of a Real Estate Agent

Whether you’re buying or selling a house, it’s a significant financial transaction. Mistakes in this process can be costly and stressful. That’s why over 80% of buyers and sellers choose to work with a real estate professional. In this article, we’ll explore the costs and benefits of hiring a real estate agent, helping you make an informed decision.

How Much Does a Real Estate Agent Cost?

The standard commission for a real estate transaction is typically 6% of the home’s sale price, split between the seller’s and buyer’s agents. If you sell your house for $250,000, the agents might receive a total of $15,000. This fee may seem substantial, but it’s crucial to consider what you’re getting in return.

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Is Hiring an Agent Worth the Cost?

Absolutely. Since sellers cover the commission for both agents, buyers have nothing to lose. A buyer’s agent brings invaluable expertise:

  • Helps find the right house in the right neighborhood.
  • Identifies any potential issues and accurately assesses the home’s value.
  • Negotiates on price or repairs on your behalf.
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For sellers, a real estate agent provides:

  • Peace of mind in selling your biggest asset.
  • Expertise in pricing your home correctly based on market conditions.
  • Marketing and showings to attract potential buyers.
  • Assistance in handling offers and negotiations.

Real Estate Agent vs. REALTOR®

Both real estate agents and REALTORS® help clients buy and sell houses. The difference is that REALTORS® are members of the National Association of REALTORS® (NAR).

Considering For Sale by Owner (FSBO)?

Before going the FSBO route, consider this: data shows that a typical FSBO home sells for $225,000 compared to $345,000 when sold by an agent. Even after factoring in agent commissions, you could still come out ahead by using an agent.

What Does a Real Estate Commission Cover?

A 6% real estate commission covers a wide range of services that help in buying or selling a property. Agents provide crucial assistance in staging, pricing, marketing, and negotiations, ultimately ensuring your home is sold quickly and at the best possible price.

How Much Do Real Estate Agents Make?

Real estate agents work entirely on commission, only getting paid at closing. They share a portion of their commission with their brokerage and cover various expenses like marketing, licensing, and office fees. While top agents can earn six figures, less successful agents may struggle financially.

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Conclusion: Find an Agent Who’s Worth Every Penny

In conclusion, a good agent is worth the investment. Look for an agent with extensive experience and a proven track record. Our RamseyTrusted real estate agents can connect you with top-performing professionals who share your financial values and will guide you through the process seamlessly.

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