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When you decide to sell your home, generally a real estate agent is contacted to take care of the details. There are many reasons obvious choice. The time constraint plays a vital role in the choice and then there is the lack of the necessary know- how required to go about the formalities of the deal. The agents who work for real estate companies sell the property for a commission. It is important to know that the commission is always negotiable. The companies for which these agents work have fixed upper and lower limits and allow the agents to negotiate with individual clients to determine the commission. The agent does not give the client any idea about the negotiability of the commission nor does he disclose the possible limits. It pays to be discreet and check on a number of agents, using strong negotiating skills in the course of making your choice. It helps to save a substantial amount of money. There is no statutory regulation on the amount that can be charged as commission for the sale of a house. Whatever is mutually agreed upon is fair enough. A fair estimate of the commission chargeable could be five percent of the gross sale value of the house. The six or seven percent that used to be charged earlier has decreased due to the competition created by the increased number of real estate firms. It is essential to arrive at a figure that gives you the fair market value of the property you intend to sell, before you narrow down on any one agency. Check the neighborhood and find out the prices for which homes similar to yours have been sold recently. If need be, get an appraisal done. It is also essential to know whether you are in a buyer or seller market. Houses tend to sell faster in a seller market and this would also indicate the amount of effort required on the part of the agent to sell the property. While negotiating the rates of commission with the agent, be sure whether he is authorized to negotiate. Generally only the broker-in-charge does this. Try to get things settled for a flat fee instead of a commission. This will prove to be cheaper. If not, try to settle for a dual fee agreement. This would mean that a certain percentage would be payable if the house is sold above the specified price. If you are unable to hire an agent on mutually agreeable terms, look around for a real estate firm that offers home marketing services at a fixed fee. They offer different services and you can opt for the one that suits you. For example, if you are able to do everything yourself and only need help in drafting a valid instrument for the sale, you could pay for the services of contract writing. Skillfully negotiating your real estate commission payable on the sale of your house will save you a lot of money and give you much better returns on your investment.
Article Source: http://www.realestateinvestmentarticles.net
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