Understanding Real Estate Fees and Commissions
Budgeting for your upcoming real estate purchase or sale can be a precarious balancing act. Once you’ve made a budget with enough breathing room, breaking down expected real estate fees and/or commissions can ensure that you encounter as few surprises as possible, and that the service you pay for justifies the cost.
When you decide to buy or sell with a professional, you should expect a worthwhile experience from start to finish. Although it may be tempting to try to save money by skipping professional representation, there are very few situations in which you wouldn’t be saving money by working with a licensed Realtor. Just like considering your own DIY dental extractions, sometimes it’s best to leave the delicate work to someone who trained professionally for a smooth, painless process.
Online property search engines can be great resources but should be no more than a starting point for your research. Most free pricing data and valuation features will be outdated and not completely relevant to your specific property. A Realtor can use the MLS database to compile information from a massive collection of properties currently or recently for sale on the Edmonton market. The data is vast but with search criteria specific enough to give a reasonably accurate estimate of current value. Combined with intimate knowledge of both the area and the relevant conditions of a home, Realtors can give you accurate price points when listing or buying a home to fit your individual situation.
What else is included in commissions and fees? Think of a Realtor and the brokerage they belong to as professional interpreters to legal regulations and rules. These very particular real estate requirements and contracts can change over time and territory. Professional advice makes up a part of the commissions or fees charged by an agent. A skilled Realtor can also secure an extra 20% or more of the value of your home through things like proper advertising, professional photography, and negotiating with potential buyers’ Realtors.
When buying a property, Realtors can also navigate the finer points of real estate. The best agents are well-educated about the latest building techniques and materials, and may have some real-world experience of whether or not it's likely to be an asset. They'll help you carry out inspections, assessments, and obtain accurate measurements to ensure you have the relevant details on a property, as well as deal with any issues with a property. A Realtor should be able to get the problems fixed, and/or secure a better financial deal. They'll also make sure that the seller doesn't have any opportunity to leave obligations unfulfilled or let a buyer sign an unfair contract.
Brokerages like Sweetly also offer an online offer system where, as a customer, you can forgo the agent representation and sell directly to us. For a flat fee, you can save even more money as a seller, avoiding maintenance and utilities, financing costs, property taxes, listing fees, and other associated costs that go along with long holding times.
Buying or selling a property can be overwhelming, and you need to be sure you're protected from making a bad deal. Working with a real estate professional can make the process smooth streamlined, saving you valuable money and time.