If you’re looking to sell your house or investment property in Austin without using a real estate agent, we can help. Although we do cooperate with brokers, sometimes it’s best to avoid paying someone to be in the middle. After all, paying 5-6% of the sale of a property in a commission is a lot of money. In certain situations, TX brokers and real estate agents can be very useful and earn their commission, but not always.
How to avoid paying high commissions in your TX sale.
In most sales in Austin, roughly half of the commission you pay as the seller goes to pay for the buyer’s broker.
Doesn’t make much sense, right?
Unfortunately, this is simply what is custom. You can use this to your advantage in a few ways, however.
First, factor in the commissions paid when you’re looking at the comparable sales. If the properties similar to yours sold for prices that included commissions, take that into account.
Don’t underprice your property – be aware that a savvy buyer may expect to take a discount too. If you’re doing the work of one agent, you can expect to save that money.
Sometimes in Austin buyers who aren’t represented by an agent won’t remember to negotiate the buyer’s side commission out of the price for themselves. This isn’t always the case, though, so don’t be surprised if it comes up during the negotiation.
You may want to consider offering 2.5% to buyer’s agents who will bring their clients to show your property. It’s a lot of money but if you’re pricing your property including that commission, you can always negotiate a better deal for a purchaser who comes without an agent.
On the other hand, if you don’t leave room for the buyer’s agent’s commission, you’ll be excluding most of the buyers in the market in Austin.
Over 90% of transactions happen through the MLS – that’s the Multiple Listing Service. It’s the main database that all the brokers in Austin use to access information for their clients on the houses, condos, land and investment properties for sale, along with data on the sold prices.
Previously you had to pay a full commission to get your property on the MLS. Now in Austin there are a few brokers who will charge you a fee just to list your property on the MLS. Often, you spend a few hundred bucks and you only pay commission if the sale closes.
Compared to the cost of a newspaper ad, the MLS is a cheap way to market your property to a very wide audience. Major real estate search sites like Realtor.com, Zillow, Yahoo Homes, etc. get data from the MLS. Chances are good that when you submit your listing in Austin to the MLS, information on your property will end up on most of the major sites within a few days.
Each of those sites sells ads. They’ve got packages that let you pay to enhance your listing, feature it at the top of the search, and a lot of other bells and whistles that might or might not get an interested buyer to buy your property.
Advertising is a gamble. Sometimes open houses in Austin TX can be a great way to sell property, and sometimes they’re a waste of time. Same with newspaper ads, craigslist postings, fancy signs – sometimes they work, and sometimes they don’t.
To effectively sell your property on your own, you have to market it well.
Putting up fliers and signs around your neighborhood can generate some calls, and there’s a lot of free websites where you can post information. But this often isn’t enough if your house doesn’t appeal to the average home buyer.
In theory, real estate agents charge big commissions because they have to spend a lot of money up front to advertise your property. By advertising lots of properties at once, they expect to get more phone calls and obviously make good profits by selling lots of houses. Certain properties might require thousands of dollars in advertising expenses before the right buyer happens to see the ad and call.
If you want to avoid paying any commissions, you can also sell your house to investors like us for CASH
We fair prices for properties – and we can close fast (in as little as 3-5 days).
Sometimes we’ll purchase Austin houses, fix them up, then rent them out or sell them to other people looking for great homes in the area. We love to hear from people like you who are thinking of selling anywhere in TX.
We’re investors who care a lot about Austin.
We close fast and pay cash in as little as just 3-5 days. Give us a call now at (512) 318-2433 or fill out the short form over here.