The City of Chicago is one of the biggest cities in the USA. Currently, the population is estimated to be 2.7 million residents. But it is nothing compared to the Chicagoland – a common name for the Chicago metropolitan area where 10 million people have found their permanent residence. Constructing more and more property in Illinois has brought many advantages to the housing market of the site. Moreover, Chicago is considered to be a crucial part of the global business market and world architecture.
Thanks to their perfect location and refreshing appeal, Chicago homes for sale attract many buyers, sellers, and potential investors. Even though many people prefer not to work with real estate agents, some are not afraid of commissions and choose to use a realtor’s help. If you sell a house in Chicago, a 6% commission of the total sale price should be paid to a real estate agent. In most cases, this sum is stable and does not vary much. Undoubtedly, selling your house is a complex process, and it is essential not to make mistakes. The joint effort of you and your realtor is the key to success.
Chicago real estate commissions
As already mentioned, a typical commission rate equals 6%. Consequently, 3% is given to both the buyer’s agent and the listing agent. Also, we should not forget about brokerage, as according to the initial agreement, they can receive their share from that 3%.
In some cases, you can negotiate the commission with your hired agent. But keep in mind, the bigger it is, the more services agents can afford to sell your house successfully. So if a commission rate is too low, the work of your realtor may eventually be unsatisfactory. For instance, such things as effective marketing campaigns on social media, buying needed equipment for promotion, and services of qualified photographers may not be available.
For sale by owner
For people who do not want to pay a commission, there is another approach known as FSBO – for sale by owner. The procedure includes several important steps. Firstly, you have to find your local Home Depot and take some yard signs along with permanent markers. Next, open your laptop and surf the net for a while in search of any free websites where you can put your house listing. Then, prepare to demonstrate your artistic skills by designing creative fliers. When finished, print them and move on to the next step, which is finding a real estate attorney. Ignoring calls from persistent agents, carefully check all the buyers you get and try to make a deal.Â
Concerning the quality of such a technique, there are some interesting facts examined by the Chicago Association of Realtors: only 10% of home sales are completed based on FSBO, and usually, the houses are sold to an acquaintance. As a result, if you want to save money and have a friend willing to buy your house – voila, perhaps the FSBO method is your best solution!
Nevertheless, carefully take into account all calculations. You have to consider potential alterations to the total price, services of a real estate attorney, and, finally, closing fees. Of course, if it is your friend, the total price may get lower, and you should be ready for it.
Average time for a house to stay on the market
Let us not forget about median home value as it is a significant indicator of the housing market. $229.000 is the current median home value in Chicago. On average, it stays 125 days on the market, but there is a possibility of price change. The price variation takes place for several reasons, including location, time, and your agent’s strategy. That is why the agents’ services are very beneficial because they perfectly know a local market and are capable of providing helpful information. They know all the trends and weaknesses and can calculate the right time for you to sell the house.
Payments
Take into consideration that you do not pay your real estate agent directly from your pocket. Generally, it is not how such necessary payments are organized. The thing is that when you arrange everything connected to a deal and come to an agreement with a potential buyer, the agent’s commission will be set in the final documentation—no need to do any previous transactions.
Important to mention that there is no commitment for you to pay your agent unless they succeed in closing a deal. Do not let yourself be tricked, and know your rights.
Advantages of buying in the same area
Typically, real estate agents are interested in giving you a discount if you buy a house in the same area where you are selling another. You can negotiate a beneficial commission rate by allowing your realtor to earn more money buying a new house. Therefore, make sure you check it to get more advantageous commission rates.
In conclusion, you may be allergic to paying agent’s commissions, but having professional help on the housing market is worth the expenses. No doubt, a real estate market is subject to drastic changes and fluctuating prices, and it is best to have facilitation. But despite all, realtors are usually open for negotiations, and if you buy the house in the same area, your commission rate may be lower. Eventually, do not let the topic of commissions scare you off, as decent realtors will explain to you all you want to know.
