Home Sellers Prefer Cash Buyers Over Brokers | Real Estate Home ...

By Sylvia Grimes

A real estate broker is a person or entity who serves as an intermediary, or middleman between sellers and buyers of real estate transaction.

How does the process work? A real estate broker and his accompanying sales team, assists sellers in promoting and selling their property, usually negotiating for the highest price or rate possible, and under the best terms. It is standard and mandatory that a person is required to obtain a license first in order to receive a commission for services rendered as a licensed real estate broker. Understand the seller will be working with an agent who is in return practicing under an established broker. Hence, this is where commission is a factor. If you?ve ever tried to sell a home before you may have wonder how the fees and commissions are tallied. Let?s take a detail look at how this works.

Seller Agent: Charges a 6% commission rate on a deal and part of this commission is split with the broker usually 50/50.

Buyer Agent: Charges the buyer a 2%-3% (sometimes this will depend on the sellers instructions) commission for helping locate a property and all documentation processing for closing.

The Deal: At closing the seller agent broker receives a 6% commission. Now 3% goes to the seller agent and 3% goes to the buyer agent. In addition to the split with the buyer agent broker, remember the seller agent still has to split that 3% commission with his/her broker.

With all that splitting of commissions it?s a wonder real estate agent don?t charge 15% -20%.

Unlicensed real estate activity is considered illegal, but buyers and sellers who act as principals in the sale or purchase of real estate are not required to be licensed. In some states however, lawyers are allowed to handle real estate sales, and are paid fees and commissions without the need to be licensed as brokers or agents. This is also true for title companies, they don?t except commissions however, they to collect fees for services rendered.

There are quite a few sellers who are comfortable doing the work of marketing their home for sale by themselves. However both sellers and buyers could simplify the process by utilizing the services of a wholesaler. It?s the quick way of doing it yourself but with experienced help on your side. The benefits are plentiful:

For Sellers: no commissions paid, no repairs needed, advertisement not needed, dealing with cash buyer, and paperwork done for you.

For Buyers: access to discount homes 50% -60% below market value, first pick before other investors, and paperwork done for you.

Wholesalers are real estate investors who look for properties for themselves and for other fellow investors that they might do a joint venture with. Most importantly for the ?do it yourself homeowner? or ?FSBO? wholesalers are ?cash buyers? usually and can close the deal quickly.

Sylvia Grimes lives on the East Coast and is a part time Internet Marketer and Real Estate Investor.

Sylvia Grimes uses her Internet Marketing to attract new business in making money from home

Want to Learn more about how you can sell your home yourself and still get help for free? Please visit: http://www.homeflippingexchange.com

Article Source: http://EzineArticles.com/?expert=Sylvia_Grimes

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