What do Agents Charge
Dear Ms. Lank: How much do Realtors charge for listing and selling a home? -- e-mail
Answer: Agents usually work for a percentage of the eventual sale price. Although, it's perfectly possible to agree on a flat amount, or as with most lawyers, an hourly fee.
There is no standard rate, and each company is free to set its own charges. While upfront fees are possible, the brokerage traditionally waits to be paid at the end, out of the proceeds of the sale, if and when the property actually changes hands. Payment is made directly to the company, not to the individual salesperson handling the property.
The specific percentage rate is determined by agreement between agent and client, and it can be any figure they agree on. Like the price of gasoline or milk, though, charges for real estate services tend to cluster around the same figure in any given community. I've had readers from different areas mention "the usual 7 percent," "a standard 5 percent," or "as always, 6 percent."
A brokerage might charge more when working with vacant land that will take a long time to sell and require more driving to show, or with inexpensive property that might not otherwise pay for the effort and advertising costs. A reduced commission, on the other hand, might be negotiated for a very expensive property, or something listed at a bargain price for a quick sale.
When property is listed by one company and sold by another, the fee is divided according to agreement between the brokers, with no extra charge to the seller.
HOUSE FOR DAUGHTER
Dear Edith: All I have is a house that is not paid for yet. I would like to know how I would leave it to my daughter when I die. Should I put her name on it now? -- J.L.
Answer: Without knowing more of your circumstances, I'd guess that the simplest and best way to leave your house to your daughter is to say so in a will. Find yourself an attorney who specializes in elder law. He or she will know if some other arrangement would suit your circumstances better and will take care of any needed paperwork.
SELL OR RENT-TO-BUY
Dear Edith: I owe $45,000 on my home and it was recently appraised for $126,000. Should I try to get a rent-to-buy or sell it? It needs some work that I can't afford. -- S.
Answer: Are you saying you want to move out? If so, it sounds as if you'd be better off selling the house outright. Negotiating a rent-to-buy contract is no job for an inexperienced landlord, and it's easy to end up in trouble. It wouldn't solve your repair problems anyhow.