UNDERSTANDING FEES
And Other Questions
UNDERSTANDING FEES
When selling your home, you have many choices of REALTORS® and real estate brokerages. Each offer different services and fee models. You owe it to yourself to interview several REALTORS® to understand, not just the commissions/fees being charged to you, but also what services and expertise will be included.
Did you every wonder who gets the commission and administrative/processing fees that you pay when selling your home?
The Listing Agent gets a percentage, the Brokerage they work for gets a percentage; the Buyer’s Agent gets a percentage, and finally their Brokerage gets a percentage.
The percentages of the commission paid to those involved can vary. Typically, buyer’s agent/brokerages will receive 2.5% – 3.0% of the money you pay. Be careful when an agent tells you, “I only charge XX% to LIST your home.” List is the key word. Always ask what they pay the buyer’s agent/brokerage. Sometimes what sounds like a good deal may not be. You need to know what the TOTAL commission is. If they will list your home for 1.75% but charge 3.0% to the buyer’s agent; then your TOTAL commission would actually be 4.75%.
Another fee to be aware of is what is commonly referred to as an Administrative or Processing Fee. This is often a flat rate and is in addition to the commission charged to sellers. You will need to add this fee to the amount you will be paying in commission to determine your total out-of-pocket expense for listing your home. This Administrative and/or Processing Fee can also apply to buyers.
If you list your home with Casa Bella Realty, LLC and if we or the seller’s find a buyer that results in a settlement, and if all parties understand that Casa Bella Realty, LLC represents the seller and everyone is in written agreement to these conditions, we will reduce your total commission to be paid to us to 3.0%.
What is an Administrative or Processing Fee?
Well, it is an additional charge to you over and above the commission you pay. This can range from approximately $300 – $700. Be sure to ask about this fee when interviewing REALTORS®.
How can Casa Bella Realty charge less commission, not charge an additional administrative or processing fee, and include value added services?
It’s really very simple. Michael V. Valencia and Barbara A. Todd are the owners of the brokerage. We do not have to relinquish any of the commission to the brokerage, because we are the owners.
What does Casa Bella Realty do with the percentage that usually goes to the broker?
We give it back to our clients in the way of lower commissions, not charging any extra fees, and including services that other agents may charge you, such as home staging services.
What does Casa Bella Realty, LLC offer to clients (at NO CHARGE) that may be an additional charge if I list with another brokerage?
Casa Bella Realty offers the standard services that most other REALTORS® offer: Professional photography, listing your property on MLS and other social media platforms, helping you through the real estate process. However, we can offer you more…..
- Expert Home Staging Services: Barbara Todd is a certified Expert Home Stager. We have merged selling housing and staging homes into one business. We have a warehouse full of furniture, wall décor, and accent pieces. That is why we can pass this along to our clients at NO CHARGE. Home Staging is all about making your home appeal to the majority of potential buyers. For occupied homes, she will offer advice on how to best show your home using your existing furnishings. For gently used homes, she may bring in wall décor or some accent pieces to enhance your present décor. For vacant homes, she will stage several rooms in your home.
- Use of our Casa Bella Truck: Buy or Sell with us and you can use our Casa Bella Realty 14” truck for free. It is ideal for smaller moves and can help reduce the cost of paying for a professional moving service. To use our moving truck, we will require that you be 25 years or older, have a valid driver’s license and a copy of your insurance card.