When you want to purchase a home, we highly recommend to use a buying agent. Buying agents ensure that you are in order with all your paperwork and you can move into your dream home as soon as possible.
There are some costs associated with hiring a buying agent. The average commission charged by a buying agent is between 1% and 5% of the selling price of the house. We believe this is a fair commission considering it is an actual investment when buying property. In this article, we’ll tell you all about a buying agent and the costs involved.
Why use a buying agent?
A buying agent is someone who can help you find your dream home. They have extensive knowledge of the local market and can advise you on the asking prices of different homes.
A purchase broker helps you negotiate the price of a home. This way, you pay a fair price for your dream home. A real estate agent will also help you agree on the conditions of sale.
Finally, the agent can help you arrange the mandatory financial and legal aspects of the purchase. The legal advice given from a purchase broker can range from from drafting a purchase agreement to putting all required documents in order. Thus, a purchase broker is not an unnecessary luxury.
Average costs and commission for a buying agent
The average cost and commission for a buying agent varies greatly. These costs can depend on where you are looking for a home as well as the experience of the real estate agent him/herself. For an experienced and licensed real estate agent, you usually pay a higher price. However, their experience speaks for itself, as successful real estate agents do an excellent job.
In most cases, the buyer pays a brokerage fee which is between 1% to 5% of the purchase price. In addition, there may also be additional fees such as costs for drafting the purchase agreement and inspecting the property. However, in many cases these costs are already included in the commission. Therefore, always read beforehand exactly what costs an estate agent will charge you. That way you will not be confronted with unexpected surprises.
When do I have to pay the brokerage fee?
When you use a real estate agent to find your dream home, you often pay start-up costs and an agent’s commission. You pay the start-up costs at the beginning of your collaboration. On the other hand, you only have to pay the broker’s commission at the key exchange. You will not pay this commission directly to the real estate agent as it is done directly through the notary.
Who pays the cost when selling a home?
The buyer of a house pays only the cost of purchasing the home. The other costs involved in selling a home are usually paid by the seller. These costs depend on the location of the home, as well as the circumstances of the sale.
The most common costs for sellers of a home include the cost of marketing the home, costs of putting documents in order, and registration fees. Some sellers also choose to pay a portion of the home buyer’s fees as part of the sales agreement.
Are real estate agent fees deductible?
If you use a buying agent to purchase a home, there are more costs involved than just the purchase price of the home. Unfortunately, the costs of a buying agent are not tax deductible. However, the costs associated with taking out your mortgage, such as mortgage advice or any costs for applying for your National Mortgage Guarantee, are tax deductible.
Is a buying agent worth the investment?
Yes, a buying agent is well worth the investment. Thanks to a buying agent, you will come into contact with beautiful homes that completely satisfy your wishes. Moreover, a buying agent can usually show you a house that is not on the public market. In addition, a buying agent also makes sure that you are prepared with all the necessary paperwork. In short: a buying agent is not a luxury. A purchase broker helps you negotiate the price of a home and also helps you get the mandatory financial and legal aspects of the purchase in order. This way, you can move into your dream home with peace of mind.