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’s true… selling your house can sometimes mean that you have to pay. (This isn’t always the case but it often is.) We want to you to know about the different fees you have to pay because this information may help you decide whether to work with an local Minneapolis St Paul agent or to sell your house directly to an investor.
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Agent Fees
The bottom line is that an agent is a salesperson and they will help you get your house ready to sell and try to find a buyer to buy your house. In order to do this, they will put together a plan want you to sign a right to sell your property agreement. After that is signed a good agent will go threw your house and put together a list of things you should do to get it ready to sell. That might include some repairs that you have not gotten to threw the years or maybe doing a little painting. Then the bring in a photographer to take pictures for marketing the house. Next step is listing it for sale on the MLS for all the agents in Minnesota to see and bring their clients threw. With some luck those visits will result in an offer. This all takes effort, time, and money for the agent.
So you’ll end up having to pay some fees to the agent. Those fees usually include a commission if they can sell the house (this is the highest amount of money you’ll have to pay and it’s often about 6% of the sale price of the house, or about $12,000 for a $200,000 house). There may be other fees you have to pay as well,
- $330 county taxes- depends on month of closing (2 months in Hennepin county)
- $375 commission to Title company
- $5 Conservation fee to County
- $680 State Deed Tax to County
- $13,390 total paid to sell your home with this example
then depending on the agent you might have different advertising fees or other costs associated with selling your house. There might be 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. You can ask the agent about these and they should tell you. some of them just seem to show up at closing so don’t be surprised!
What Are The Different Fees Paid To Agents Versus Paid To Investors? — Investor Fees
This is the part that surprises most house-sellers: They have to learn what ways to tell a real estate agent apart from an investor in Minneapolis St Paul. When working with most investors, there are rarely any fees to cover. Investors will usually take care of all fees associated with selling. Plus there’s no commission to pay because they’re not agents so they’re not listing your house. You might be responsible for closing costs but this depends on the investor so make sure you ask the investor who pays for those costs.
The One “Fee” You May Not Be Thinking Of
There’s one more cost (“fee”) that you might not be thinking of: when you work with an agent versus paid to investors, they’ll get you to fix up your house and then you’ll have to pay bills and taxes for as long as it takes the agent to find a buyer. It could be 6 months or more from the time to talk to the agent until the closing. During a buyers market in real estate it can be over a year. So although this isn’t a fee to the agent, it’s a cost you’ll have to pay because of the agent… yet when you sell the house to an investor, they buy quickly so you end up saving this cost as well.
So what’s right for you? It depends on how much you’re willing to pay and how quickly you need to sell. There are signs its time to sell you house fast that an investor can help you accomplish.
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.
What are the different fees paid to agents versus paid to investors… Minneapolis St Paul
Here is the normal fees when working with Minnesota Cash Home Buyers, when we buy your house for all cash.
- $0 for commission
- $0 for normal house repairs
- $0 for long term holding cost, talk with you and come together on a price, and we can close in as fast as 7 days, or when ever its convenient to you.
- $0 Cost to do TISH repairs- we buy your property and take over the TISH repairs, truly you are selling as is.
- $0 for closing fees, you pay all utilities and taxes up to the sale and then we take over.