Avoid Real Estate Fees with a Cash Home Sale

One of the biggest headlines concerning real estate right now is the shift in rules for paying real estate fees and agent commissions. This has some sellers concerned about the process of selling a home and how it is shifting.

How Recent Laws Have Changed Home Sales and Real Estate Fees

As of August 17th, the way real estate agent fees/commissions are paid is different than the traditional procedure a majority of home sales were handled. Previously a majority of home sale transactions paid the buyer’s agent commission through the selling agent.

The home seller paid an average 6% commission to their selling agent and the selling agent would split this commission with the buyer’s agent. Due to a lawsuit brought against the National Association of Realtors on their communications of how commissions were to be paid, the rules have changed with new laws in place for all home sale transactions across the country that is changing real estate fees.

“Recently a lawsuit settled with the National Association of Realtors has changed the federal laws for the process of a buyers’ agent receiving compensation from a home sale. Instead of a buyer’s agent splitting the commission paid to the selling agent by the home seller the buyers’ agent commission must be determined by the home buyer in their contract agreement with their agent.” —The Knieper Team Blog

Now instead of a guaranteed commission split and the buyer’s agent commission paid through the selling party, the commission must be determined with the buyer that has hired the buyer’s agent. This does not mean that a seller is not allowed to pay the buyer’s agent commission, but it does require an extra level of negotiations to have sellers help pay this fee.

Buyers are required to sign contract paperwork detailing the services an agent will provide for them to help them find a new home, this includes making provisions for how they will be paid for their services. It does not mean that a seller can no longer help pay this amount out of the proceeds from the home sale. This requires a buyer to ask for this in a home purchase offer contract as a seller concession and may take some extra negotiation that was not required before.

Selling to a Cash Buyer Can Streamline a Home Sale

Some home sellers in Pennsylvania including areas like Harrisburg, Lebanon, and Lancaster choose to forgo the traditional home sale transaction by selling their home to a cash buyer.

No Home Showings

There is no need to get a home in perfect condition and ready for several different potential buyers to come and see the property in hopes of getting an offer. With a cash buyer, you contact the company and let them know of your interest in selling your home. They ask some questions about your home and make an appointment to see the home. (no one dropping by at the last minute or unannounced) If your home meets the purchase criteria you will receive an all-cash offer beginning with a written purchase contract.

No Waiting for Financing to Come Through

With a cash buyer, there is no financial contingency written into the purchase agreement contract. You won’t have to wait for the buyer to secure a home loan. This is often the longest part of waiting to close on a home sale with a traditional selling process. A cash buyer already has the funds available for the amount they offered to pay for the home. You could close on the sale of your home in as little as seven days. You get to pick the closing date.

No Realtor Fees

There is no negotiating realtor fees and commissions. A reputable cash buyer will not charge a realtor fee and will pay all applicable real estate transaction fees. There are no negotiations about payment or extra costs associated with selling your home. Your responsibility is to read over the contract carefully, agree to the payment, sign the contract, choose the closing date, collect the monies owed, and pay taxes if applicable. it is a much more simplified home sale process.

If you are interested in selling your Harrisburg area home for cash, contact us any time. We are a reputable home buyer ready to help you sell your home as hassle-free as possible.