Real estate commissions are typically paid for by home sellers not home buyers. When you go to sell your house you pay your real estate agent a commission. If you look at your closing statement after you sell your house you will notice you are also paying a commission to the buyers real estate agent. In the 1990s the average home seller would pay a real estate commission of approximately 6.1 percent, half to the buyers agent and half to the sellers agent. As the real estate market shifted to a sellers dream the average real estate commission decreased to 5.4 percent in 2001.
Summer 2005 brought about the peak of the sellers market. Home sellers could post a For Sale By Owner sign in their front yard and expect a full price offer in just a few days. When people can sell their house in just a few days by posting a sign in the front yard real estate agents are viewed as an over paid service. In 2005 the average real estate commission was just over 5 percent.
Now the real estate market has shifted back to a buyers market. Real estate agents are back in the drivers seat and once again raising commissions. In 2006 the estimated real estate commission was 5.18 percent, up 0.16 percent from the previous year. With the real estate market sliding even further to the buyers side, real estate commissions are expected to increase even more over the next couple of years.
There are many people who are in financial strain, mostly caused by their home mortgage payment. Either they purchase their home at the top of the market and now owe more for their house than what they purchased it for, or they have some personal situation which makes it hard for them to make their mortgage payment.
If your home is causing you financial strain and you can not afford to pay large real estate commission, you have options. There are a couple ways to sell your house and not pay a real estate agent. You can sell your house FSBO, which will still cost you a few thousand dollars up front, or you can sell your house to a local home buyer.
Local home buyers existing in every real estate market. They will give you a free offer on your home and explain your home selling options. Even if you do not have enough equity to pay real estate agent commissions, your local home buyer can help. They can possibly lease option your home or take over your mortgage payments. If you are in a financial strain because of your home and you would like to sell your house fast. Contact your local home buyer and see what they can do for you.