Are you wondering how much it costs to have a realtor help you buy a house? In this video, we explain who pays the commissions when you buy a house. We also provide answers to common questions like…
- Who typically pays the real estate agent’s commission when buying a house?
- How are the commissions split?
- When is the commission paid?
How Much Does it Cost to Have a Realtor When Buying a Home?
How much does it cost to have a realtor? The cost of a realtor is a common question among prospective home buyers. After all, buying a home is a major financial transaction that comes with many costs, including lender underwriting fees, closing costs, and realtor commission fees.
However, first-time home buyers may not realize that the home seller actually pays the bulk of closing costs, as well as the commission fees for both their own realtor and the buyer’s agent.
Still, it’s important to understand your realtor’s commission rate and how that cost factors into the home-buying process. In this post, our realtors at Your Home Sold Guaranteed Realty - Phil Aitken Home Team will answer common questions related to the cost of working with a realtor to buy a home.
What is The Typical Commission Rate For a Realtor When Buying a Home?
Realtor commission tends to fall between five to six percent of the final sales price of the home. Commission rates in most states are within this amount, though a few states have higher or lower amounts.
This amount is split between the buyer’s agent and listing agent– two to three percent for each one. Of course, the exact commission amount can vary depending on the realtor and their level of experience, which brokerage they work for, your location, and current market conditions.
But as mentioned above, these fees are typically paid by the home seller, so they don’t impact the price you pay as the buyer.
Can You Negotiate the Commission Rate With a Realtor When Buying a Home?
Yes, you can negotiate the commission rate with a realtor. But as the home buyer, you won’t have to worry about this. Instead, negotiating will be the responsibility of the home seller.
Are There Any Alternatives to Using a Realtor to Save on Costs?
You can purchase a home without a realtor, though this won’t particularly help you save money since the home seller pays the commission fee anyway. Instead, the main benefit is that you have complete control of your home-buying experience.
The downside to this is that you’ll have to handle all of the responsibilities that buyer’s agents typically take care of, like paperwork. In addition, you won’t have access to information about the latest listings as they hit the market, meaning you may miss out on potential properties.
What Services Does a Realtor Provide to Justify Their Commission When Buying a Home?
A buyer’s agent offers several services that make the value of their commission fee worth the price. These include:
- Finding properties in your desired location that match your criteria
- Working with a wide network of listing agents to match you to connect you to a home seller
- Utilizing home search tools that are exclusive to realtors
- Scheduling tours and showings, and finding open houses
- Negotiating with home sellers and their listing agents
- Handling paperwork
- Making sure you pay a fair price for a home
- Suggesting reliable lenders, home inspectors, appraisers, and other professionals
Are There Tax Deductions Having a Realtor When Buying a Home?
Commission fees are tax deductible for home sellers, but not in the way that you might think. Commission fees can’t be listed as an itemized deduction on a tax return, the way other costs like property taxes or mortgage interest can. Instead, they’re subtracted from the profits of selling a home. This lowers the amount of taxable income the seller has, which means they’ll pay a smaller capital gains tax.
How Much Does it Cost to Have a Realtor When Buying a Home in Jacksonville, Florida?
So, how much does it cost to have a realtor help you buy a home in Jacksonville, Florida? If you want to buy a home in Jacksonville, Florida, contact Your Home Sold Guaranteed Realty - Phil Aitken Home Team. Our realtors have helped home buyers find their dream homes in and around the JAX area for years.
Clients love working with us because of our team’s reputation for high-quality customer service, attention to detail, and exceptional communication.
On top of that, we offer unique home buyer guarantees, like our Buy it Back Guarantee. With this guarantee, we’ll buy your home back and sell it free of charge if you’re unsatisfied with it for any reason.
We offer this guarantee because we’re confident in our ability to match you to a home that meets all your needs.
To learn more about working with our team, give us a call at (904) 544-5252. You can also fill out the form on this page for more information.