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Real Estate Agents FAQs
Real estate agents work on commission, so the cost of hiring an agent will depend on the cost of the home you’re buying or selling. The listing contract should include information about the commission for both agents, which is usually 6 percent of the sale price in total or 3 percent per side. With an average national home value of around $440,000, the typical commission per agent is $13,200. However, you won’t pay this total out of pocket. Instead, the commission comes out of the sale price of the property.
Interviewing real estate agents is the best way to find the right person for the job. Consider asking the following questions to find the best agent for you:
How will you show my property?
Will you do open houses to market my home?
How will you handle dual agency (representing the buyer and you as the seller)?
Should I make repairs to my home before listing?
Will you get professional photos taken of my home?
What is the best price you think we can get for my property?
How long do you expect the sale to take?
Yes, hiring a real estate agent is worth it. Many homeowners make the mistake of trying to sell their homes by themselves, thinking that they’ll save money on the commission, but what they save on the commission, they very often pay for in frustration and concessions on the sale price. Hiring a real estate agent to handle the sale of your home not only makes the process far easier and takes the burden off of you, but most homeowners get more for their homes when going through an agent because of the marketing and salesmanship they bring to the table.
You don’t legally need a real estate agent as a buyer, as you can represent yourself, but you should always hire an agent as a home buyer. A professional real estate agent will have access to local MLS services to find homes that meet your criteria and needs, can connect you with other professionals—like a mortgage broker and real estate attorney—you’ll need for the purchase, and can often negotiate a better price for your home to help save you money. Plus, as the buyer, your agent’s commission comes from the seller’s proceeds from the sale of the home.
