In.Practice How Do.Employees Make Money Out Of Stock Options How to Minimize or Avoid Brokerage When Buying a Home

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How to Minimize or Avoid Brokerage When Buying a Home

The number one such cost is the brokerage you pay to the real estate agent or the brokerage firm. Brokerage is the fee charged by middleman or broker between the buyer and seller. This fee alone can significantly add up to the cost of buying your home and make you exceed your budget for buying a home, as most brokers charge a brokerage fee of 1% to 3% of the total sale price. And, when buying a home even 1% can mean a lot of money.

Here are some ways in how you can minimize or totally avoid the brokerage fees when buying a home -:

  • Though brokerage or the estate agent’s fees is often said to be paid only by the seller and not the buyer, in practice the estate agents claim brokerage from both the seller and the buyer. But, if you search hard enough you might be able to find a broker who takes brokerage only from the seller and not the buyer.
  • With the help of internet it is not at all difficult for you to find homes for buying instead of going to a real estate agent or a brokerage firm. There are many sites on which homes for sale are listed where you can contact the seller directly without having to go through an agent. This means you get a zero brokerage or no brokerage home and you totally save all the money you had to pay as brokerage fees.
  • There are many online sites offering zero brokerage or no brokerage homes, which you can find homes on. With such sites existing a zero brokerage home is just a Google search away from you.
  • Leverage your network of friends, relatives, colleagues, and acquaintances to find a home to buy instead of going to a broker. You’ll surely have someone in your network who is looking to sell a home or at least knows someone who can put you in touch with someone wanting to do so. You’ll save a ton of money in brokerage fees by taking help from your network to find you a home.
  • Last but not the least, if you find that there is no other option other than going to a broker to find a home to buy, use the age-old technique of negotiating with the broker. Bargain for a good deal and be persistent until you find a broker who accepts your terms. This way, even though you won’t be getting a zero brokerage or no brokerage home, you’ll at least have a better deal and will have to pay less in brokerage fees.

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