How to Proactively Save Money on a Home Sale
Everyone is looking to save, even if it's just a little. Most people who decide to enter the real estate market do not know that commissions are negotiable. When making a home sale, a little discount can result in thousands of savings, and who wouldn't want to save? Regardless of your location, real estate fees are generally flexible. Real estate agents usually expect their clients to negotiate their fees. However, it would be best if you kept in mind that some agents will not accept any negotiations. Here are a few ways you can save money on a home sale:
Ask and Negotiate
Not all agents will gladly offer you a discount, so it is best to ask. One of the biggest mistakes new home buyers or sellers make is assuming their real estate agents will creatively and proactively negotiate on their behalf. It is essential to do your research and find out how much similar properties are worth. The asking price quoted by your agent will be higher than your selling price. So what should you do to save on your home sale?
Consider negotiating with your agent to get the most out of your sale. If you ask right, some agents will even give you a percentage of their commission, which translates into a considerable amount of savings, even if it is only 1%. It is also essential to ask your agent what they would consider as a fair offer for your home and justify their response by comparing other sales. This will ensure you set your selling price at the best possible offer.
Be Loyal — Sell and Buy with the Same Agent
Most real estate agents often give their long-time clients discounts and commissions. It is a great idea to use one agent you trust when selling and buying a home. This way, you can negotiate a reduced commission; however, some agents might not agree. If you trust your agent, then this can be a good move for you.
Not only will hiring one agent reduce the hassle of communication between different parties, but you may also get a discount on commissions, which saves you money. It is also cost-effective since you will have to pay for both deals. This means you can negotiate the total cost and get a good bargain for the total brokerage.
Choose an Agent Who Represents You and the Buyer
When an agent represents both you, the seller, and the buyer, it is called dual agency. However, it is illegal in some states. With one agent, the entire sale process is simple and efficient. You won't have to wait for your agent to reach out to the buyer's agent, who then contacts the buyer, who then calls back their agent with an answer, who calls your agent back, who finally calls you back with a response. This is a cumbersome tag game that happens every time you need a decision from the buyer.
With dual agency, you also get to save significantly, rather than when using different agents. Since there is only one agent who will collect the entire commission, you can negotiate a lower rate. However, you can only do this if your agent is willing to negotiate.
Find Agents Who Control Neighborhoods
If you are looking to sell, you must find an agent who mostly works in the neighborhood. This will earn you a discount since the agent works in the area. These agents may ask for higher commissions but will quickly lower their fees because of competition from other agents.
If you find an agent who insists on a high commission but interview another whose commission is lower, call the first agent, offer the latter's fees, and explain why. Because of the competition, the agent is likely to lower his fees, saving you money.
Overall, selling a home can be quite overwhelming. However, it is up to you to ensure you save as much as you can from a home sale. Leaving all the work to your agent is not a good idea. It would be best if you worked hand in hand with your agent by negotiating commissions, saving you a lot of money. With remote online notarization technology, you can work online without having to meet your agent every time.
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