Selling your Home for Cash? Forget the Commission

If you’ve previously sold a house on the market, you probably know that you never receive the full amount you are offered. At closing, a large amount of money is deducted for various reasons, with the major chunk going for commission. But if you sell your house to a cash buyer, you will never pay commission.

What Is Commission?

In the traditional sales process, commission can average up to 6% of the total selling price of your home. So if you are offered $100,000 for your home, you will pay $6,000 in commission. That’s on top of the other expenses you have to pay.

The commission goes to pay the sales agent that took your listing and marketed your home. Often, the commission is split between your agent, the buyer’s agent, and the sponsoring brokers. This is how they make their living.

Why Don’t Cash Buyers Charge It?

Cash buyers don’t charge commission because they don’t employ any sales agents and they don’t use brokers. Your house isn’t listed on the market, so they don’t incur those expenses, either. Since the transaction is between you and the buyer, there are no “middlemen” to pay.

All of that can add up to savings on your part. The amount of the cash offer you receive is what you get at closing. The cash buyer will pay for the other closing costs, also. You might be wondering, then, how cash buyers make their living.

How Do Cash Buyers Get Paid?

Cash buyers aren’t sales people so they don’t earn commission. Instead, they are property investors. Cash buying companies are in the business of buying houses and property for the purposes of reselling them.

Cash buyers will either sell the homes directly to other investors or they will fix up the houses and resell them for a profit. Some cash buyers will also rent out houses. They don’t charge commission because their income is generated through their business.

Not paying commission is one of the benefits of selling your home to a cash home buyer. Another advantage is that you don’t have to make any repairs or fix up your house before selling. With a cash home sale, you pay no extra charges.

You can sell your Utah house without commission or closing costs. Click here to learn about the advantages of a cash sale.

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