Question for a realtor.... about selling (agents, commission, title insurance, closing)

[tulip66]

My question is...we possibly may be moving to a different state. We have done this previously as a Company Relocation (all expenses, fees, commissions, moving van) paid for by company.

This time the company (same one) has made changes and is no longer
offering a Paid moving package. They want to offer a lump sum amount
(ex: 35K) up front to us. All moving expenses, commission, inspections,
closing costs would be for us to pay now.

This seems impossible to make a relocation from one state to another, sell
one home and buy another, title insurance, etc, etc.... my current home is
worth 600k. What is the commission I would have to pay the realtor?

[Silverfall]

Real estate agents charge different fees. I suggest you interview three and see what they will charge. According to the NAR the national average is like 5.1% or 5.2%, if memory serves me correctly.

[rjrcm]

Do you have any equity in your home to help pay your closing costs? As Silverfall indicated, there is no standard fee. Most companies have cut back on moving cost expenses.

[richb]

For example, if your house sold for $600,000. And you were paying 6% commission to the real estate agents. The commission would be about $42,000. Is that what you are asking? 5% would be about $36,000.

So if they are offering $35,000, yes, you would be paying for more of your costs out of your own pocket vs the last time you moved.

At least you are getting something from your employer. Most people who move for jobs get nothing.

[rjrcm]

Originally Posted by richb

For example, if your house sold for $600,000. And you were paying 6% commission to the real estate agents. The commission would be about $42,000. Is that what you are asking? 5% would be about $36,000....

Maybe I'm missing something:
$600,000 * 6% = $36,000 (not $42,000)
$600,000 * 5% = $30,000 (not $36,000)
Are you adding some other fees?

[WhoFanMe]

Don't get hung up on fees, but rather focus on what you take out of the transaction. An agency that charges higher fees might sell your home two months faster and for a higher price than an agency that charges lower fees. After you factor in your carrying costs, you might be better off by paying the higher fee. Don't forget how expensive it is to keep your curb appeal where it is today! As Silverfall says, interview three agencies and listen carefully to how they are going to work with you. Do you want to trust your $600,000 asset, particularly when you are going to be in another state, with the lowest cost agency?

[richb]

Originally Posted by rjrcm

Maybe I'm missing something:
$600,000 * 6% = $36,000 (not $42,000)
$600,000 * 5% = $30,000 (not $36,000)
Are you adding some other fees?

Oops, my mistake, I was going to put in 7% and 6%.