If you’ve ever sold a house before, you know that you never receive the full selling price at closing. A big chunk of your proceeds is deducted as commission. But this never happens when you sell to a cash buying company. They never charge commission, and for several good reasons.
No Sales Agents
In a traditional sale, you meet with a sales agent who arranges to photograph your house and create a “for sale” listing on the market. Then, the sales agent shows your home to prospective buyers until you receive an offer. The agent might even host an open house.
These sales agents are paid for the work they do by the commission deducted from your selling price. This can range as high as 6% in some places. And you don’t just pay the sales agent you deal with; the buyers’ agent gets a cut of the commission, too, along with your agent’s sponsoring broker.
Cash buying companies do not employ sales agents, so they don’t have to charge commission. They buy your house from you directly. That means the amount you are offered for the home will be the amount you receive at closing, with nothing deducted.
Other costs are also eliminated. With a cash sale, there is no listing or marketing fee. There aren’t any home inspections or property assessments to pay for, either. The cash buyer picks up any closing costs.
You might be wondering how the cash buyer makes a living if they don’t charge commission. The cash buying process involves a completely different financial model than you might be used to. Since it’s a direct buy, there’s nobody else involved but you and the cash buyer.
Cash buying companies are essentially property investors. They make their money by buying houses and properties that need fixing up or that people want to sell quickly. Then, they repurpose the properties or fix them up and resell them.
Fast cash buying companies never charge commission because they don’t need to. The benefit to buyers is that they know exactly how much money they will receive at closing for their home. And, because there are no other parties to be paid, the closing can be quick—often within a week or so.
You can sell your home in the St. Petersburg area without paying commission. Click here to find out how.