Listing your property for sale with a real estate agent or company means that you will need to pay your agent a commission when it sells. When signing up with an agent or company, you can negotiate a commission rate that is acceptable to both of you.
This blog post will help you with what to look for and what to ask when hiring a low-commissioned real estate agent.
Who is a Real Estate Agent, And What is The Average Cost of Hiring One
A real estate agent is a licensed professional facilitating property transactions, acting as an intermediary between buyers and sellers. They provide valuable expertise, guidance, and support throughout the buying or selling.
In Virginia Beach, the average cost of hiring a real estate agent can vary depending on several factors, such as the agent’s experience, reputation, and the specific services they offer.
The average total real estate agent commission rate in Virginia Beach is 5.33% of the final sale price. Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale.
The average listing agent fee in Virginia Beach is 2.67%, while the average buyer’s agent fee is 2.67%. It’s important for sellers to carefully evaluate the services offered, experience level, and reputation of real estate agents in Virginia Beach to ensure they find the right fit for their needs and budget.
| How the Real Estate Commission Works in Virginia Beach | |
| Average listing commission | 2.67% |
| Average buyer’s agent commission | 2.67% |
What are Low Fee and Flat Fee Real Estate Brokers?
Flat-fee real estate brokers are a type of real estate professional offering a different pricing structure than traditional commission-based agents. Instead of charging a percentage-based commission on the final sale price of a property, flat fee brokers charge a predetermined, fixed fee for their services.
This fee is typically paid upfront or when listing the property. Low-commission agents’ fees may be considerably lower than what you’d be able to negotiate with a traditional agent as low as 1 percent. Companies offering discount commission charge a 1 percent “listing fee” on homes over $350,000.
The main advantage of working with a flat-fee real estate broker is cost saving. By opting for a flat fee structure, sellers can save a significant amount of money, especially if selling a higher-priced property.
The flat fee is usually more affordable than the traditional commission percentage, allowing sellers to retain a significant portion of the sale proceeds.
How much cost can be saved with a low-fee real estate agent?
Using a low-commission agent can save you several percentage points on the home’s sale price. Their fee typically ranges from 1 to 1.5 percent, compared to the national average of 5.37 percent.
Continuing the example of the $300,000 home, the savings are more than $10,000. A 5.37 percent commission on the sale would add up to $16,110, but 1 percent is just $3,000, and 1.5 percent is $4,500.
Pros of working with a low Commission Real Estate Agent
Cost Savings
One of the primary advantages of working with a low-commission real estate agent is the potential for cost savings. By paying a lower commission, you can retain a more significant portion of the sale proceeds for yourself.
Increased Profit Margin
With a lower commission, you may be able to price your property more competitively. This could attract more potential buyers and lead to a quicker sale, increasing your overall profit margin.
Flexibility in Pricing
Low-commission agents may be more open to negotiating fees or offering alternative pricing models. This flexibility can be beneficial, especially if you have unique circumstances or a high-value property where traditional commission rates may result in significant costs.
Motivation to Sell
Low-commission agents may be highly motivated to sell your property quickly. Since their compensation is tied to the sale, they have an incentive to work diligently on your behalf and secure a successful transaction.
Cons of working with a low Commission Real Estate Agent
Limited Services
Some low-commission agents may offer fewer services compared to traditional full-service agents. They may focus solely on the transactional aspects of the sale and provide minimal assistance with marketing, staging, or negotiating.
Potential Lack of Experience
Low-commission agents may have less experience or a smaller network of contacts within the real estate industry. This could impact their ability to market your property effectively, attract qualified buyers, or negotiate the best terms.
Reduced Availability
Due to the lower commission structure, reduced commission real estate may have a heavier workload. This could result in limited availability or less personalized attention throughout the selling process.
Quality of Marketing and Resource
Property selling involves extensive marketing, including online listings, professional photography, and virtual tours.
With a low-commission agent, there is a possibility that the quality of marketing and resources provided may be compromised due to limited funds allocated for these activities.
Factors to Consider When Hiring a Low-commission Agent in Virginia Beach
Wondering if working with a low-cost Realtor is right for you? While saving money on commission is nice, your focus should always be on finding someone with the right mix of experience, dedication, and expertise to ensure a successful home sale.
- Look for an agent with a proven track record and experience in the real estate industry, specifically in selling properties similar to yours in Virginia Beach.
- Assess what services the agent offers. Ensure they provide the necessary support throughout the selling process, including marketing, negotiations, and paperwork.
- Consider the agent’s network and connections within the real estate industry. A strong network can help attract potential buyers and facilitate a smoother transaction.
- Choose an agent who communicates effectively and promptly. Good communication is essential for a successful selling experience.
- Evaluate the agent’s marketing strategies, such as online listings, professional photography, and virtual tours. Effective marketing can help showcase your property to potential buyers.
- Read client testimonials and reviews to learn about the agent’s reputation and past clients’ experiences. You can also request references from previous clients for direct feedback.
- Understand the agent’s commission structure and fees. Clarify any additional costs involved and ensure transparency regarding the financial aspect of the transaction.
Alternative Options For Selling a House in Virginia Beach
For sale by owner
Hands-on sellers with the available time and resources can list for sale by owner (FSBO). When you choose this path, you’re doing an agent’s work, from prepping your home, setting the list price, taking photos, listing your home online, hosting showings, and negotiating with buyers.
In 2023, only 7% of home sales were for sale by owner, according to the National Association of Realtors.
Sell to a Cash Home Buying Company
Cash Home Buying companies make all-cash offers on homes. Since they flip houses for profit, they commonly submit offers below market value. But they can often close in under a month if you’re looking for a quick sale. While they don’t charge a commission, some companies charge fees instead of offering less for your home.
Cash home-buying companies specialize in working with sellers of distressed properties in poor condition or about to go into foreclosure.
Are low-commission agents as effective as traditional agents?
The effectiveness of a low-commission agent depends on their experience, market knowledge, and the services they offer. Some low-commission agents provide full service and can be just as effective as traditional agents, while others may offer limited services, which could impact their success rate.
Some potential drawbacks of using a low-commission agent include limited services, less personalized attention, and potentially lower final sale prices due to less aggressive negotiation. However, some sellers find that the cost savings outweigh the potential downsides.
Why Choose HR Property Doctor
Real estate commissions eat into your profits from selling your property. Get rid of the hefty fees and commissions with HR Property Doctor’s cash home-buying solution that helps you sell fast and without hidden expenses. HR Property Doctor is a trusted platform with hundreds of satisfied customers, that help you sell your property in the minimum time.
Contact HR Property Doctor today if you’d like a fair, no-obligation deal on your home with any issues in Virginia Beach.