How to avoid or minimize Agent costs

Question

Is there anyway to minimize or avoid agent costs, I don't have much scope for profit if I pay agent costs, what options typically one has

Greg Scott · Answer

If you believe the solution to your problem is how much you are paying a real estate agent, the problem is not with the real estate agent.

Alecia Loveless · Answer

@Rajagopalarao Paidi My agent has made me hundreds of thousands of dollars both buying and selling. I’d be foolish to try to skimp on his agent fee.

Chris Seveney · Answer

@Rajagopalarao Paidi

Recognize time is also money if you are financing it and I have found without an agent will take longer to sell.

Also are you local where you could manage all the showings, advertising etc?

Jose Jacob · Answer

NO.  You have to give an exclusive right to the agent to sell the property.  Experienced agents do not like work on OPEN listings.

Bob S. · Answer

yes dont use them LOL . I get all my deals OFF market, never use a realtor. You need to find better deals, there not on MLS

Good luck

Albert Hepp · Answer

Flat Fee buyer agency to reduce acquisition costs (get ~2% of the sales price back), and flat fee MLS listing to reduce selling costs to ~$500. Flat fee buyer agency is new but growing quickly since the August 2024 agent compensation rule changes/lawsuit settlement.

Andrew Freed · Answer

@Rajagopalarao Paidi - You can always get your license and list the property yourself. Nonetheless, there is definitely value in hiring an experienced agent vs. a novice agent. You will probably regain the commission in the form of a higher sales price with a expert level agent.

Additionally, I normally build in at least 7% of the purchase price going towards transaction costs when selling a property. Agent commissions + closing costs. You should build that into your numbers and work your way backwards towards an offer price.

Russell Brazil · Answer

Don't hire an agent if youre trying to avoid agent costs.

Jose Jacob · Answer

This is not a straight answer to your question but this is an answer for your next project.  When you buy the property to fix&flip, you always add Realtor fee as part of your closing cost to calculate the MAO. I always do that. Real Estate Agents bring more buyers to your property. More buyers=more offers.  More offers=higher selling price.  If you are planning to stay in the Investing field, you need good real estate agents to help you in several ways. Try not to be penny wise and $ fo----sh.  Good Luck.

Now answer to your question.  You can try to advertise the property in Zillow or FB marketing place or groups and try your luck. Hopefully your house is on your backyard.

Hassan Asif · Answer

Talk with them! They make their living from this work and deal with more hassle than you can imagine, based on what I know from some of my realtor friends. A migraine is a normal thing for them. If you can't afford to pay what they're worth, just talk to them, and they might put more effort into reducing the deal cost so you can save money in other ways.

How to avoid or minimize Agent costs

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