Why are You Paying so Much Commission When Buying a Home? via @homebidz

Why are You Paying so Much Commission When Buying a Home?

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Commission payments are a common complaint when purchasing a house. Sometimes, when you look at numbers in the thousands and tens of thousands and think about the fact that those dollars aren't actually going toward the physical property you're investing in, it can be hard to swallow.


Yes, it is possible to go on this venture alone, without a listing agent, but there's a reason why most people don't. Many other people will have their hands on the task of transferring real property aside from just the listing and sales agents, seller, and buyer.

Consider this list of jobs that may be included in the commission fee:

  1. Realtor(s)
  2. Lender
  3. Insurance Agent
  4. Inspection Company
  5. Home Warranty Company
  6. Pest Control
  7. Escrow Representative
  8. Attorney(s)
  9. Title Representative
Considering the amount of education and training that went into providing you with the perfect team to help make your dreams a reality, that number might not be so big after all. And we haven't even talked about the filing fees that each company and individual is responsible for, the rent and utilities on the operations buildings that these people work in, and storage for all of the documents that have to be held onto for legal reasons. 

If you do it on your own....

Some people do not go through an agent to sell or buy their homes, and there are times that it's okay to do that. For example, if you know someone who wants to buy your house, you might not need to go through an agent. It is important to make sure that all paperwork is done correctly, of course, but at the closing with the financial institution, that should not be a problem. You won't have to pay commission, which is more money that you can keep from the sale of your home, or not have to pay an agent. Weigh your pros and cons to decide which is the best option for you when buying your new home.

Need Low Income Housing?

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