How to Pay a Lower Commission When Selling Your Home
How to Pay a Lower Commission When Selling Your Home in Silicon Valley
If you are based in one of the cities in Silicon Valley and are looking to sell your home, you are probably aware that there are many expenses incurred during the process of selling your home. One of the largest of those costs is the commissions paid to the real estate agent who sells the home. The typical percentage paid to real estate agents in Silicon Valley is 6%. 3% goes to the seller and the seller’s agent and 3% to the buyers and the buyer’s agent. For a moderately priced $600,000 home this can amount to $36,000. For a $1,000,000 home the price doubles to $72,000. The seller is the one who pays the real estate agent fees and therefore sellers are often looking for ways to reduce these costs.
Here are a few tips to lower your commission to sell your home in Silicon Valley:
Sell it yourself
Selling homes yourself is a way to reduce sales commissions. This is commonly known as For sale by owner or FSBO. While many sellers mistakenly think they will save the full 6%, unless they find the buyer themselves as well, the buyer’s agent will still expect to receive their commission of 3%.
Further, there are many challenges in selling your home yourself.
The biggest challenge in selling your home in Silicon Valley is that each market is different. Selling your home in Saratoga is very different than selling your home in San Jose. You have to know each market very well. School district boundaries can change from year to year and you have to know how to market it to the broadest audience. What was attractive about the house to you may not be attractive to buyers in the market today. Having a pulse on what buyers are looking for today is important to market your home
Other challenges with Selling homes in Saratoga is that you must prepare your home for sale. If you are living in your home and marketing it at the same time, many buyer may not feel comfortable when walking through the house. They may not see themselves enjoying living the way you are living and that can turn buyers off. Further, you have to be available to show the home, have legal contracts drawn up, and complete all of the negotiations. Essentially you are paying yourself to complete the work that the real estate agent would be doing. This includes taking photos or videos of the home, paying to advertise the home, holding open houses and so on.
Real estate agents work with the home market every day and understand how to prepare a home for sale, present the home in its best light to buyers, price the home correctly and establish a competitive price for your home. These are all skills that a seller can gain with time and effort and the result will be substantial savings if you decide to sell your home in Saratoga yourself.
Getting on the MLS
Many sellers decide that going it completely alone is too much work, but they are still looking to save money on Realtor fees. Especially if you live in the Cupertino neighborhood. When the entire real estate market was in crises, the only thing that happened in Cupertino was that the prices did not go up. If you are selling homes in Cupertino, you may want to seek middle ground and work with a company that has a “pay as you go” service. They provide some guidance and you complete the legwork. You pay specific fees for the services you use. This might include paying for advertising and a listing your Cupertino home for sale by owner with the MLS service. It might include fees for contracts or help with negotiations.
in an arrangement like that, the seller is still responsible for showing and presenting the home to buyers but receives help with marketing and the legal side of homes for sale by owner in the Cupertino area.
The downside to this method is buyer’s agents will often go out of their way to not show home that are listed through these agencies and the homes tend to take longer to sell.
Get the Best of All Worlds
For sellers who want to have their cake and eat it too, there is one more option.
Hire a full time professional Realtor, who leverages Internet technologies and efficiencies and passes on the savings to your by charging a lower commission for selling your home in Silicon Valley.
The seller gains professional representation and the services of a full service broker. While sellers are interested in saving money, saving 3% in commissions and then Selling Homes in Los Gatos for 10% lower price does not make sense. Working with a professional real estate agent gives you all the resources with Home selling tips for your property in Silicon Valley and selling it at the highest possible price in the shortest amount of time.
This option creates the best of both worlds. All the service while still saving on commissions.
REALTYWEB.COM charges 1% in commissions plus the 2.5% or 3% commission for the buyer’s agent. This is a 2% reduction in costs, while still maintaining 100% of the upside of using the services of a professional agent.
If you are looking to pay the lowest commissions possible, while still getting all of the services of a hiring an agent, visit REALTYWEB.COM today to learn more about how to get them to work for you. You will be represented by Rob Roham one of the area’s top real estate brokers. REALTYWEB.COM works with you to set the right price, show your house in the best light and provide all of the legal guidance needed.