How Realtor Fees Work

Realtor commissions are typically calculated as a percentage of the final sales
price of a home. According to the National Association of Realtors, the average
commission is 5-6%, with half going to the listing agent (the agent representing
the seller) and the other half going to the buyer’s agent.

For example, if your home sells for $300,000 and the agreed-upon commission is 6%, you would pay
$18,000 in total commissions. This amount comes out of the proceeds from the sale, which can be a substantial cost for home sellers.

Strategies to Avoid Paying Realtor Fees

If you’re looking to avoid paying commission fees, here are several strategies
to consider:

1. Sell Your Home Yourself (For Sale By Owner - FSBO)One of the most straightforward ways to avoid realtor commissions is to sell your home without using a real estate agent. This approach, known as For Sale By Owner (FSBO), puts you in control of every aspect of the sale process, from setting the price to negotiating with buyers.

    

   How FSBO Works:

   • You list your home for sale on websites, social media, and local marketplaces.
   • You handle all inquiries, showings, and negotiations directly with potential buyers.
   • You coordinate the paperwork and closing process, often with the help of a real estate attorney.

   Pros:

   • No need to pay listing agent fees, saving you 2.5-3% of the sales price.
   • Full control over the sale process and negotiations.
   • Potential to save thousands of dollars in commission fees.

   Cons:

   • Time-consuming and requires effort to market your home effectively.
   • You may lack access to the Multiple Listing Service (MLS), which is a
     primary tool for reaching a broad pool of buyers.
   • Negotiating directly with buyers can be challenging without experience.
2. Use a Flat-Fee Listing Service
   
   If you want your home listed on the MLS without hiring a full-service real estate agent, considera flat-fee listing service. These services charge a one-time fee to include your property on the MLS, making it visible to potential buyers and agents.

    
   How It Works

   • You pay a fixed fee (typically between $100-$500) for your home to be listed on the MLS.
   • You handle the rest of the sale process, including showings, negotiations, and paperwork.

   Pros:

   • Provides access to the MLS without paying a full real estate commission.
   • Saves you money compared to hiring a listing agent.
   • You retain control over pricing and negotiations

   Cons:

   • You still need to pay a commission to the buyer’s agent (usually 2.5-3%).
   • You’ll need to manage all aspects of the sale beyond the listing.
3. Sell Directly to a Cash Or Real Estate Investor
   
   Another way to avoid paying realtor fees is to sell your home directly to a cash buyer or real estate investor. These buyers often purchase homes as-is, without requiring repairs, staging, or lengthy negotiations, such as Dream Team Property Solutions.
    
   How It Works:
   • You contact a company or investor that buys homes directly
   • They evaluate your property and make an offer, usually within a short timeframe.
   • If you accept the offer, the sale process is streamlined, with minimal fees involved.

   Pros

   • No need to pay agent's fees or commissions.
   • Faster sale process with fewer contingencies.
   • No need for repairs, showing, or staging.

   Cons:

   • Offers may be below market value to account for conveniences and as-is conditions.
   • Limited opportunity for competitive bidding or negotiations