Does Redfin Have Hidden Fees?

Does Redfin Have Hidden Fees?

Redfin offers listing services at a rate of 1.5%, which is about half the fee that traditional realtors offer. This might seem like a good deal at first glance. However, is it as good as it sounds, or are there other less apparent costs? Does Redfin have hidden fees? 

Does Redfin Have Hidden Fees?

No, Redfin does not have hidden fees. However, you could end up having to pay more than the percentage that they advertise. This is because Redfin uses minimum fees based on the market. So, if you’re selling a lowly priced home in an expensive market, you might find yourself parting with way more than their advertised percentage.

A seller’s greatest fear is completing a sale without having made any substantial capital gain. This implies that you went through the entire sales process with nothing significant to show. While you don’t have to worry about hidden fees, there are other ways to sell or buy while retaining a greater part of your capital gains.

Person using a calculator

Making Use of Local Realtors

Making use of local realtors is one way to save yourself some cash. Their understanding of how the real estate market around your location works often serves as an effective weapon in getting the best deals.

Asides from listing your homes, realtors will help you in the following aspects:

  • Showing the house to potential buyers
  • Taking care of all the paperwork
  • Marketing your home both locally and on social media
  • Taking clean and professional photographs of your home  

Generally, there are two types of local realtors. They are:

Traditional Realtors

While traditional realtors may not be a bad call, you might find yourself paying excess still. Traditional realtors charge 5-6% of your home price, which is equally divided between the listing agent and the buyer’s agent. 

This means that if your home costs $800,000, the commission fee you’d have to part with would be $48,000, with $24,000 going to the seller’s agent. This is a lot of cash compared to how much money you’d have to pay if you made use of a flat fee realtor.

Flat Fee Realtors 

Flat fee realtors are your best bet in avoiding extra costs and saving more money. Flat fee realtors charge a fixed price that does not fluctuate, irrespective of the price value of your home. For instance, opting for CA Flat Fee realtors, who charge a listing fee of $5,000 no matter the price value of your house. Not only do you pay a flat fee but also receive a comprehensive set of services only a few flat fee realtors offer.

Adequate Preparation for Sales

Before a listing occurs, certain things should be in place that would help you sell your home quicker and for better gain. They are:

  • Repairs and renovations
  • Cleaning up your house
Realtor showing a house for a client

Repairs and Renovations

The following repairs should be made if there is a need for them within the home you are looking to sell:

  • Leaky or dysfunctional faucets
  • Loose, bleached, or broken tiles
  • Peeling or fading paintings
  • Broken doorknobs and locks
  • Creaky or quivering staircases

Clean Up Your House

A dirty, untidy home has a lesser aesthetic appeal than a clean, good-looking home, which makes it less likely to be sold at great prices. Ensure that before taking pictures and hosting showings or open houses, you do the following:

  • Wash/scrub the floors, windows, and walls
  • Keep the lawns well mowed and the gardens groomed 
  • Plant natural beautifiers such as flowers and shrubs at the entrance to the house 
  • Get rid of all cobwebs and debris around

You might be needing to employ the help of a professional cleaning agency to help you perform these tasks effectively. 

Good Pricing Strategies

A good pricing strategy is important if you ever hope to get the best deals on your home. Three pricing strategies that may be of considerable help are:

  • Fair and competitive pricing
  • Underpricing 
  • Price-filtered search 

Fair and Competitive Pricing

If you are looking to sell your home easily and way quicker without the stress of bargaining and negotiating, your best bet is to set a competitive price. This is an average price that buyers will not only consider fair, but valid as well. Be aware that if buyers consider our house a good deal for them, you’d make sales in no time. 

To set a competitive price, you have to understand the pricing structure in your locality. Your CA Flat Fee realtor will prove to be a useful guide in this aspect. 

Underpricing

Underpricing is setting the price value for your home at an amount that is a little lower than the average amount of similar homes in your neighborhood. Two advantages of these are:

Home buyer asking a flat fee realtor for advice if Redfin has hidden fees in their contract
  • It calls the attention of buyers to your home listing
  • It can ultimately be used to bag an even higher home price, which with your CA Flat Fee realtor, means more capital gain.  

Having a lower home price could also lead to a bidding war that eventually increases your sales price. 

Price-Filtered Search

This is one great way of ensuring you get a high number of views, which ultimately increases your chances of selling quickly and making quality gains alongside. Knowing the preferred price ranges of buyers in your local area would enable you to set similar prices for your home. 

This way, when they input a particular price range, your home pops up in the listings. Going through the necessary research for this might be too stressful and time-consuming for you, which is why it is a good thing your CA Flat Fee realtors, through their understanding of the market, have the information right at their fingertips.

Related Questions

Do Flat Fee Realtors Have a Base Commission?

Flat fee realtors typically charge a flat, one-time fee. This fee may vary depending on the market as well. For instance, CA Flat Fee charges only $5,000 in California.

Does Redfin Offer Full Service?

Although Redfin can be cheaper than other firms, Redfin doesn’t offer the kind of full-service real estate that CA Flat Fee offers for only $5,000. This includes the entire range of activities that characterize the sales process from listing to closing. 

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Conclusion

Getting the best deals in speedy sales and capital gains is not an impossible feat, although you might have a hard time implementing the helpful tips listed above. However, working with a flat fee realtor not only offers you an easy and stress-free process but also ensures that you sell faster and keep most of your gain to yourself    

Save Money On Your Home Today

Full Service One Flat Rate!

Call Orange County      : 760-388-9118

Call Los Angeles County  : 626-790-2250

Call Inland Empire          : 909-581-8364

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What Commission Does 72Sold Charge?

What Commission Does 72Sold Charge?

72Sold is an Arizona-based firm that promises to sell homes within 72 hours or 8 days. It is an attractive alternative for homeowners who want to quicken the home-selling process. According to 72Sold, homeowners don’t have to compromise on the selling price.  The homeowners often wonder if the 72Sold’s commission is much higher. In this article, you will learn about the commission that 72Sold charges to sell the home within 8 days.  72Sold’s Commission Structure The commission charged by 72Sold is comparable to what the traditional agents charge. The commission range is between 5% to 6% of the home’s final price. This rate covers both the listing agent’s fees and the buyer’s agent’s fee. This commission is split between these two parties. They get around 2.5% to 3% each.  Traditional Agents vs 72Sold Commission The commissions charged by the traditional agents are similar to 72Sold. Besides that the traditional agents may take some extra fees. They usually charge additional marketing costs for professional photography and staging. Also, the traditional agents may take  administrative fees that increase the overall cost. Flat Fee Agents vs 72Sold Commission Flat fee agents like Ca Flat Fee charge a fixed rate rather than a percentage of  the selling price. But the overall cost of flat fee agents can be similar to the commission structure of 72Sold. The flat fee agents take some additional charges for marketing and open houses. You should evaluate if the quick sell is justified to trade off against the fixed rate of flat fee agents. Hidden Fees  You have to pay the closing costs and some hidden fees regardless of the agent you select. The closing costs are escrow fees, transfer costs, and insurance. You also need to prepare your home to make your home appealing to the potential buyers. For that, you have to bear the repair and maintenance costs.  Alternatives to 72Sold Though 72Sold offers a faster selling process within 8 days, this commitment can’t be guaranteed. The homeowners can opt for other trusted options like traditional agents, flat fee agents, and discount real estate brokers. Homeowners can also sell the home on their own (FSBO).  The discount brokers charge 1% to 2% of the selling price. Homeowners who are cost-sensitive may find this alternative reasonable. But the discount brokers may offer fewer services and the level of service may vary.  Is 72Sold Worth It? Homeowners whose house is located in a demanding market may find the 72Sold as a perfect option. As they offer to sell homes within 8 days at a higher price, they attract many sellers. However, you will have to pay similar fees to the traditional agents and other alternatives. You may also miss opportunities to grab a higher price. You can surely boost up your earnings by comparing the real estate agents to choose the best one.  Conclusion  Homeowners who are looking for a faster home-selling option may opt for 72Sold to sell their house. They can also consider other options like the flat fee agents and traditional real estate agents.  For example- the flat fee agents can guarantee the highest possible sale price at a fixed commission rate. By evaluating the prominent platforms, sellers can pick the right option according to their priorities. 

How to Buy a House in California? 

How to Buy a House in California? 

In America, many people dream of buying a house in California- the Golden State. California offers the diversity of big cities like Los Angeles. Then again you can also enjoy the tranquility of Santa Barbara. But buying a house in California can be confusing, especially for first-time homebuyers. According to the California Association of Realtors (CAR), California’s median home price is expected to be $860,300 in 2024. So, you should know the appropriate process before deciding to invest. This article will guide you through the steps to buy a house in California.  5 Steps to Buy a House in California Financial Preparation At the very first step, assessing your financial situation is essential. Only then you can create a realistic budget. Home affordability calculators will assess your income, expenses, and debts and evaluate your mortgage payment ability. Houses in California are indeed expensive. But the cost varies with the location.  How Much Do You Need for a Down Payment in CA? The down payment amount can be up to 20% in CA. Also, it can be a minimum of 3% in the case of conventional loans. You can have the option to put less money down. For that, the lender may ask you to get private mortgage insurance. Home Buying Down Payment Assistance Programs in California Down payment assistance programs lessen your hurdles of managing a down payment. The programs are designed for first-time home buyers. Also, buyers whose income falls below the median income are eligible for the programs. The first-time homebuyers assistance programs in California are: CalHFA Forgivable Equity Builder Loan CalHFA’s Myhome Assistance and Zero Assistance Program (ZIP) California Dream for All Shared Appreciation Loan Although there are certain requirements to avail of these assistance programs. CalHFA requires a minimum credit score of 660 to 680.  Credit Score Requirement for a Home Loan You will need a credit score above 650 depending on the loans. 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Buyers should select mortgage options according to their eligibility and needs. Some of the mortgage options are:  Conventional home loans VA loans FHA loans Jumbo loans USDA loans House Hunting in the Right Neighborhood Finding the best house in your desired location requires some effort. First, you need to gain knowledge about the diverse housing market and consider an appropriate location. The living cost in California is quite high. So, your budget is a vital issue in selecting a location. But the living cost is a bit lower in many areas.  For example: the cost of living in Sacramento is less than in Los Angeles.  Now, it’s time to search for your dream home. A real estate agent will guide you through the search process. Their expertise in the local real estate market will help you to compare the offers. Thus, you can pick the best house according to your budget.   You can find properties with your desired needs on the property search sites. Check the listing websites with the latest and comprehensive information. Plan your visit carefully when you are visiting open houses. It’s always better to prepare necessary questions beforehand. Look beyond the staging and take your agent with you. Then check the neighborhood well.  Make an Offer and Negotiate to Buy CA Home The next step to buy a house in California is making the offer. The offer price, contingencies, and proposed closing date are written in the proposal. Your real estate agent will help to negotiate efficiently. The offer price should be competitive but realistic.  The offer may include an earnest money deposit. It is usually 2% of the purchase price. It is paid to make the house off-market before closing as an incentive to the seller. The earnest money is adjusted with the down payment later.  Closing  You can proceed with closing when the offer is accepted by both parties. Make sure to get done with the home inspection appraisal process. If all goes well, you can close the deal. In this step, you have to pay all the closing costs.  Closing Costs of Buying a House in California The closing cost of buying a house in CA is 2% to 5% of the purchasing price. Some of the closing costs are loan organization fees, agent fees, appraisal fees, and title search fees. Escrow Process to Buy a California House Escrow agents handle the transactions of the buyers and sellers. They ensure the security of transactions. The buyer deposits the funds in the escrow account. Here both parties submit essential documents to the agent. The money is released once all the contingencies of both parties are met. The agent closes the escrow account after the transfer of ownership.  The Final Walkthrough and Closing  You are now at the final stage of buying a house in California. Schedule your final walkthrough to check the property’s  condition before signing the papers. The appliances should work properly and the seller should complete any agreed-upon repair.  Finally, you have to sign tons of documents to close the deal. Some of the documents are title transfer, final loan application, and deed. You may find it difficult … Read more

Selling Your House with a Mortgage in USA

Selling Your House with a Mortgage in USA

They say that buying a house is one of the most stressful experiences in life you’ll ever encounter, and while that may indeed be the case, there isn’t enough talk about the hardships associated with selling a house, especially one with a mortgage.   Despite the endless paperwork associated with selling a mortgaged property, we’ve lately seen a sharp increase in the amounts of homeowners selling their homes, despite them still being mortgaged.   Those looking to sell house with mortgage USA may wonder where they stand legally, and indeed, how easy selling a house with an outstanding loan actually is. Can you sell a house with a mortgage, and if so, just how easy is it? Well, the truth is that, despite there being several steps to sell a house with a mortgage, doing so is surprisingly easy, and very common.   Here is a quick overview for those looking to sell a house with a mortgage USA, and several key facts to understand.   Can You Sell a House with a Mortgage?   The simple answer is yes you can.   If you’re looking to sell a mortgaged property, you are perfectly within your rights to do so. In fact, doing so is extremely common.   Statistically, the average US homeowner stays in their home for 13 years. Typically they pay off their outstanding mortgage on the property by selling it. Providing you have enough equity to pay off the mortgage in full when the deal closes, there’s nothing stopping you from selling a house with an outstanding loan, I.E a mortgage.   Benefits of Selling a Mortgaged House   Despite being perfectly legal and common, some of us may be wondering whether it’s the right decision to selling a house with a mortgage.   Here are a few benefits associated with selling a house with a mortgage.   You can use profit from selling a mortgaged house to put toward your next property. If you are downsizing, you can keep the profits once your previous mortgage has been paid off. If you’re upsizing, you can use profit from selling a mortgaged house to put toward a down payment.   What Happens to My Mortgage When I Sell My House?   In a typical home sale, unless the real estate market is going through a very bad patch, you should be able to sell your property for more than you owe on your mortgage.   By paying off your mortgage over the years, you will have accrued equity in your home. This can then be cashed in on once you sell up.   When a house sale closes, between the mortgage loan and the down payment, the buyer will provide the funds at the settlement that are equal to the sale price of your home. You can then use these funds to pay off any equity loans, closing costs such as agent fees ETC, and of course, the outstanding mortgage balance.   Can I Sell my House If I Owe More Than It’s Worth? (Underwater Mortgage)   Selling underwater mortgage house issues are also fairly common in the real estate world. Put simply, an underwater mortgage is when the mortgage is worth more than the property is worth, meaning you have negative equity. If for example, you paid over the odds for the property, or simply bought before the property market tanked, you could find yourself with what is known as an underwater mortgage. Can you still sell, but it’s important to know your options.   First off, you could pay off any outstanding payments yourself, from your own savings or investments. This is obviously far from ideal, but it will help protect your credit rating. Another option would simply be to put the house sale on hold and wait for real estate prices to increase.   The third option is a short sale. This means that your mortgage lender must provide permission for the house to be sold for less you owe on your mortgage. The lender has the final say over which offer to accept or reject. This will, however, negatively impact your credit score.   How Much Equity Do I Need to Sell My House?   In truth, there is no clearcut answer to this question because it depends on a number of factors and circumstances.   A general rule of thumb, however, is that you should aim for around 15% if you wish to upsize, or 10% if you’re simply looking to relocate and purchase a similar-sized property.   What Are the Closing Costs for Selling a House with a Mortgage?   As far as closing costs when selling with a mortgage, again, there is no clear and concise answer to what they will be because each sale will be different. As a general guide, expect closing costs of between 2% and 6% of the total mortgage loan amount.   How Long Does It Take to Sell a House with a Mortgage?   How long is a piece of string? The simple fact of the matter is that we can’t give you a precise answer to this question because there isn’t one. You could list a mortgaged house for sale and find that it sells in less than 7 days, or it could take months, or even remain on the market for years.   Statistically however, as of March 2023, it took on average 54 days to find a buyer. Does this mean that your house will sell in that duration of time? Absolutely not. It could sell much quicker, or it could take much longer. It should be noted that, as soon as the Fed begins implementing the projected three interest rate cuts later in 2024, property sales should start speeding up.