Realtor commission is usually calculated as a percentage of the home’s sale price, in the range of 5-6%. We surveyed agents across the country, and found the average real estate commission cost to be 5.37%, though it may trend upward or downward by region.

The money for realtor commission comes out of the seller's proceeds from the sale. This includes the realtor fees for both the seller's own agent (often called the "listing agent" because they list the home for sale) as well as the agent that represents the buyer.

Below, we explain everything you need to know about realtor commissions, including how they work, their typical cost, and what services real estate agents provide to earn their fee.

JUMP TO SECTION

• How realtor commission works
• How much are realtor fees?
• How do realtors get paid?
• What does real estate commission cover?
• Is realtor commission negotiable?
• Do you have to pay realtor fees if your home doesn't sell?
• How realtor commission works on rentals

How realtor commission works

Realtors typically aren't paid a salary and don't make money upfront when they take on a new client looking to buy or sell a home. Instead, they earn commission on the home's sale when the deal closes.

Commission rates are talked about as a single percentage — often between 5-6% of your home's sale price. However, that is not meant to imply that you are only paying one agent; typically, the seller’s agent splits this fee with the buyer’s agent, who brings one of their clients to purchase the home.

Since realtor commission comes out of the proceeds from the home sale, which otherwise would go to the seller, people usually say that the seller pays for both realtor fees.

So why would the seller pay for the buyer's agent? There are a couple ways of looking at it, but essentially, the buyer's agent commission is a marketing expense to attract buyers. Here's how that works:

• As a seller, if you don’t offer a buyer’s agent commission, buyers who want to work with an agent will have to pay their agent out of pocket.
• That means buyers will have to bring 2-3% of the home’s price in cash to pay their agent on top of their down payment — making your home much less affordable than similar homes nearby that are offering a buyer's agent commission.
• In addition, buyer’s agents who see your home listed for sale will see that you aren’t offering any commission and may be less inclined to show their clients your home.

How much are realtor fees?

Home sellers should expect to pay 5-6% of their home's sale price in realtor commissions; however, these rates are 100% negotiable.

» More: Average Realtor Commission Rate

A home seller and their real estate agent typically agree on a commission rate when they sign a contract to work together. This contract — called the listing agreement — outlines the payment, duration, and other terms of the realtor-seller working relationship.

How do realtors get paid?

Realtors get paid at the very end of the real estate transaction when the home sale is finalized. This typically takes place on the home's closing date in a process known as settlement when a title company officially transfers ownership of the home, and distributes proceeds from the sale.

Agents don’t get to keep all of their commission — which is important for you to keep in mind if you’re trying to gauge how much your realtor will make from your sale. Realtors generally split the commission they earn from a home sale with their broker, who is legally required to oversee the transaction.

The amount of commission that agents have to split with their principal broker will vary but is typically in the range of 30–50%. For example, if the listing agent commission on a home sale was 3%, and the agent had an agreement to split the commission 50-50 with their brokerage, the agent’s take-home pay from the sale would be 1.5%.

Here's an example of how that works for a home that sells for $200,000:

The listing and buyer’s agent each make $3,000, and their brokers each collect the same amount. The broker justifies their cut by providing training, marketing support, and certain legal protection to their agents.

What does real estate commission cover?

Real estate commission is typically all inclusive; it covers all aspects of the marketing and sale of your home.

Most agents will do the following to sell your home:

• Perform a Comparative Market Analysis (CMA) to help you properly price your home
• List your home on the Multiple Listing Service (MLS)
• Promote your home on popular real estate sites like Zillow
• Pay for professional photos
• Coordinate showings
• Help you with legal paperwork
• Negotiate on your behalf

Realtors front the time and money needed to market your home; you don't pay them anything until you finalize the sale. That means if your home doesn't sell, your realtor is the one who takes the hit.

If you are a home buyer, the question of what commission covers is less important. As we mentioned previously, buyers do not typically have to pay real estate commission; your agent's fees are usually paid for by the seller out of the proceeds generated by the home sale.

Furthermore, there is less variation in the services provided by buyers' agents as almost all buyer's agents will help their clients:

• Find homes
• Attend showings
• Submit and negotiate offers
• Handle the legal paperwork

While the services outlined above are what agents typically offer, the level of service will vary from agent to agent.

So how will you know what your realtor is willing to do and what services they'll pay for when selling your home? Typically, the details of what your agent will do to sell your home is decided when you sign your listing agreement. They may provide this in the form of a marketing plan, which presents the agent's plan for attracting potential buyers.

If you want more expensive marketing — such as staging, 3D tours, or extensive social media advertising — your agent may refuse to pay out of pocket. If you know you want these things for your home, make sure you discuss this with your agent before you sign a listing agreement.

Is realtor commission negotiable?

Realtor commission is completely negotiable, and negotiating can be a really effective way to save money when you're selling a home.

Just because commission rates are negotiable, that doesn't mean that an agent will lower their fees for you. To successfully negotiate for lower commission rates, you'll likely need to convince your agent of one of two things: your home will be easy to sell, or it will make your agent more money than they'd typically earn on a sale.

You also may be able to get lower rates just by shopping around and comparing agents. Some agents will be more willing to offer you low rates than others. Just remember that commission rates aren't the only thing you should consider when choosing an agent: their experience in your neighborhood and price range, customer reviews, and your personal rapport with them are important as well.

Do you have to pay realtor fees if your home doesn't sell?

Most of the time, if your home doesn't sell, you don't have to pay realtor commission. However, the specifics of whether or not you owe realtor fees depends on what you agreed to with your agent.

Home sellers only have to pay realtor fees if their agent fulfills the terms outlined in their listing agreement, which specifies exactly what they have to do to get paid. Usually, listing agreements require that the agent finds a buyer and sells the home within a set time frame.

There are some cases where sellers might owe realtor fees even if their home doesn't sell. A listing agreement might stipulate that if the listing agent brings the seller an offer for at least the full asking price of the home, they’re owed a commission. So in this case, if the seller chose to reject a full price offer, they'd still owe realtor fees.

Additionally, your listing agreement might say that if you choose to take your home off the market before the listing term ends, you must reimburse your agent for some of the marketing expenses they incurred.

Read the fine print of your agreement carefully.

How realtor commission works on rentals

Realtor commission works differently on rental properties than it does for most home sales. The main difference is that typically the landlord pays the agent's commission when they find a tenant.

If you're using a rental agent to help you find an apartment, you're probably off the hook in terms of paying commission.

One notable exception to this is New York City where the renter usually pays the rental agent's commission.

The post What Is Realtor Commission? appeared first on Semya-Moya.

How much are realtor fees?

The current average real estate commission is 5.37%, with 2.72% going to the listing agent and 2.65% going to the buyer's agent.

At this rate, U.S. home sellers pay realtor fees of about $8,055 on a $150,000 home and $37,590 on a $700,000 home.

How do realtor fees work?

When you sell a home, two realtors are typically involved: your listing agent and the buyer's agent. Both agents get paid a real estate commission based on your home's final sale price. These commissions are factored into the listing price of the home, and they're paid from the sale proceeds rather than up front.

While 2.5–3% is the typical fee per agent, what you actually pay will depend on the commission rates you agree to with your listing agent.

Discussions about commission rate usually take place at an initial listing appointment, when you and a realtor talk about working together to sell your home. The rate you decide on is documented in the formal listing agreement you sign with your agent.

You and your realtor will also decide what commission rate to offer a buyer's real estate agent. Offering this commission incentivizes buyer's agents to bring their clients to your home.

Note: realtor commission rates aren't set in stone. They vary by location, brokerage, market conditions, and other factors — and they're negotiable.

Some full-service brokerages negotiate lower commission rates for you, which could save you thousands on your home sale.

For example, Semya-Moya pre-negotiates 1.5% listing fees with top real estate agents across the country. When you find your realtor through Clever's free service, you get the full service and support of an experienced, local agent for about half the typical listing fee.

Who pays realtor fees?

Home sellers pay real estate fees for both their own agent and the buyer's agent. These fees come out of the proceeds of the sale, not out of pocket.

The buyer's agent commission is a marketing cost for your home. Nearly 90% of buyers work with an agent.[1] These agents are more motivated to show your home to their clients when you offer a competitive buyer's agent commission.

And one could argue that the buyer actually pays for the buyer's agent commission. This cost is factored into the home's sale price, so the buyer technically pays for it through their mortgage.

» JUMP TO: How realtors set commission rates

What percentage do realtors make?

Total realtor commission ranges from 4.45% to 6.34%, with an average of 5.37%. The total is usually split evenly between the seller's agent and the buyer's agent.

The exact percentage you'll pay a realtor depends on several factors, like the normal rate in your area and which agent you choose to work with. If you find an agent through a low commission real estate company, you can pay a rate well below the industry average.

One of the best-rated companies, Semya-Moya, makes it easier to save by pre-negotiating lower listing fees with top real estate agents. With Clever, you get a local agent from a trusted brokerage like Berkshire Hathaway or Keller Williams — but for a fraction of the cost.

💰 SAVE: Save thousands on realtor fees, sell with a top local agent!

Average realtor commission for listing agents

The national average realtor commission for listing agents ranges from 2.26% to 3.17%, with an average of 2.72%.

On a $346,653 home sale, the listing agent would get $7,834 to $10,989.

Listing commission rates can vary by as much as 40% depending on where you live.

Here's how listing commissions differ in states with the highest and lowest typical costs:

» LEARN: How to save money on listing fees

Average buyer's agent commission rates

Nationwide, buyer's agents typically collect 2.19% to 3.17%, or 2.65% on average.

On a $346,653 home sale, the buyer's agent would get $7,592 to $10,989.

Buyer's agent commission rates can vary by 0.88 percentage points depending on which state you live in. That's a significant cost difference.

Here's a breakdown of how buyer's agent commissions compare across the country:

How do real estate agents set their commission rates?

Realtors tend to set their commission rate based on what other agents in the area are charging. Rather than a fixed percentage, most real estate agents operate within a range, typically 2.5–3%. They'll adjust their rate based on these factors:

Home value

Among realtors, home value is one of the biggest factors in determining commission rates. Since commissions are based on a home's final sale price, higher value homes offer a bigger pay off. "If a house is on the higher end for our market ($500,000 or more)," says realtor Ryan Radecki, "I’m more willing to negotiate the listing fee."

Repeat business and seller situation

Realtor Isabela Sarto bases her rates on factors like whether the client is selling more than one property or also looking to buy. She might also offer a lower commission for sellers in difficult situations or those referred by a past client.

How hard the house will be to sell

For realtor Susan Aviles, commission boils down to how hard it will be to sell a house. "I try to find out when I first talk to my client what the overall condition of the home is," she says. Aviles also looks at the level of demand from prospective buyers in the area and what other agents are offering.

Level of service

Minneapolis-based realtor Michael McGivern bases his rate off of the service package his clients choose. "I offer sellers three options with commissions at five, six, and seven percent with different features at each level," says McGivern. "This allows the sellers to tell me what they value and sets them up for a great experience."

Market conditions

Local market conditions are particularly important when determining the buyer's agent commission (BAC), says Aviles. "When it’s a seller’s market, we can offer a lower buyer’s agent commission. If there are a lot of actives, we might offer higher to attract more buyers."

What's a Fair Commission For a Real Estate Agent?

What's a fair commission to pay your real estate agent? Learn whether your realtor is asking for a fair price based on your home price, location, and market.

How to save on realtor fees

Work with a brokerage that offers built-in savings

For most sellers, the best way to save is by working with a low commission real estate brokerage. The top discount companies, like Clever, provide the same agent and service quality you'd get from a traditional realtor — but charge a LOT less.

Clever matches you with top local agents from well-known brokerages like Century 21 and Keller Williams. It also pre-negotiates 1.5% listing fees, which is half the rate most realtors charge.

You can interview as many realtors as you want to find the best fit — or walk away at any time. The service is free, with no strings attached.

Negotiate the commission rate directly with your realtor

Realtor commissions are negotiable, and you can always ask your agent for a discount. However, some real estate agents may be more open to adjusting their rates than others — and it may be up to you to start the conversation.

In the following scenarios, an agent might be willing to lower their rate to secure your business:

» MORE: How to negotiate realtor commission

Sell your home for sale by owner (FSBO)

You can also save by selling your home DIY instead of working with a listing agent. However, we don't recommend this route for most sellers.

Most FSBO sellers end up selling their homes for less than market value, which can limit or even negate the savings on realtor fees. And FSBO sales are time-consuming, with legal and financial risks.

» MORE: How to sell your house for sale by owner

Average real estate commission by state

Across the country, real estate commissions are typically 5–6%, with realtors charging higher or lower based on factors like local norms and market conditions.

Use this table to find the average real estate commission in your state:

_{* Due to insufficient data, commission rates in these states were inferred from regional averages.}

No matter where you live, paying average realtor fees will take a HUGE bite out of your profits when you sell your home. Thankfully, you can save on realtor commission without sacrificing the support of an agent.

» SAVE: Get a 1.5% listing fee with a top local agent

How much do real estate agents make per sale?

How much a realtor makes per sale depends on the final home sale price and the commission rate. The standard total commission rate is 5–6%.

Generally, the realtor commission is split evenly between the seller’s real estate agent and the buyer's agent. And each agent usually splits their commission 50/50 with their brokerage.

On a $400,000 home sale with a 6% total commission rate, each agent would walk away with approximately $6,000.

Here's how much you can expect to pay in realtor fees based on different home sale prices and common realtor commission rates:

Why are real estate agent commissions so expensive?

Realtor fees are expensive for a few justifiable reasons:

• Studies show that homes sold by real estate agents net 5.82% more than comparable homes sold without an agent.[2]
• Listing agents don't get to keep all of the commission they earn from a home sale — they split it with the buyer's agent and their brokerage.
• Realtors take on risk by covering home-marking costs up front, without any guarantee they'll be compensated.

» MORE: What does a real estate agent do?

Some low commission companies help realtors reduce their risk and up-front costs. This allows the real estate agents to charge lower rates while providing the same level of service. Learn more about how to save on realtor fees.

FAQ about realtor commission

Methodology

Data on commission rates is based on a survey of 630 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area.

The data featured on this page is not meant to imply that commission rates are fixed. Commissions rates are always negotiable. These figures represent ballpark estimates of what home sellers can expect to pay in real estate agent fees when they sell their home.

In addition to data from our survey, we also used home value data from Zillow, which was current as of October 2023.[3]

Related links

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Best 1 Percent Commission Realtors across the US

Selling your home with a 1% commission realtor can save you thousands, but what's the catch? Read on to learn where to find a 1% listing fee and what you'll get in return.

How to Find a Real Estate Agent That's Right for You

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Learn more about commission rates

6% Real Estate Commission Explained

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Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

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How to Save on Realtor Commission Fees (Without Sacrificing Service)

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3% Commission Realtors: Should You Use One?

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The post Current Average Realtor Commission Rates appeared first on Semya-Moya.

How much is the typical real estate commission on land sales?

The typical real estate commission on land sales costs at least as much as the national average realtor fee, which is currently 5.37%. Half of that normally goes to your listing agent, half to the buyer's agent.

But you might have to pay a higher commission depending on your property type and estimated sale price.

For example, a realtor may charge as much as 8–10% if you're selling a lower-priced piece of land in a less desirable market. Selling farmland or a vacant lot can be more complicated and take more time than selling a traditional home because land buyers have more specific needs.

Since real estate agents often charge higher commission rates on land sales, many sellers attempt to save money by listing their properties for sale by owner (FSBO). But unless you're a developer or already have a buyer lined up, selling your own land can be difficult. You'd have to market your property and navigate real estate laws on your own.

If you want to keep more in your pocket when you sell, your best bet is to work with a low-commission company like Semya-Moya.

Clever matches you with top local realtors who charge a low 1.5% listing fee. You can see your agent matches for free and choose the best fit, or you can walk away anytime.

5 facts about realtor fees for land sales

1. Real estate commission on land sales is fully negotiable

While the average real estate commission rate is 5.37%, there’s no legally set rate for any type of real estate transaction. Realtor fees are negotiable, whether you’re selling a house, a vacant lot, or several hundred acres of farmland.

If you're looking to negotiate a lower commission rate on a land sale, you're more likely to be successful if you're:

• Selling an expensive property
• Listing several properties with the same agent
• Selling in a high-demand area
• Flexible on pricing
• Willing to show buyers the property yourself
• Prepared to walk away if the agent won't negotiate

Negotiating realtor fees yourself is challenging, but it can save you thousands if you're able to score a big discount.

For example, if you sold a tract of farmland for $400,000, negotiating a 1.5% commission rate would save you $6,000 compared to the 3% listing fee many land brokers charge!

2. Broker fees on land sales are still split

Even though you’re not dealing with a home sale, there are usually still two separate agents:

• The listing agent represents the seller and markets the property to buyers.
• The buyer's agent represents the buyer.

Sellers are typically responsible for both agents' commission fees, which could fall between 5% and 10%, depending on the property.

3. The type of land may affect your rate

Since broker fees for land sales aren’t set in stone and are fully negotiable, the type of land and the level of service matter. In southern U.S. states and in places where vacant land is cheaper, you might pay commissions as high as 8–10% on a building lot or smaller tract of farmland.

If it’s a buyer’s market, consider subdividing the property before you sell. It could be more lucrative to make several transactions rather than sell the full plot to a single buyer. An experienced local agent can help you determine whether you'll maximize your profit by subdividing your land or selling it as a single parcel.

4. Broker fees for land sales go up on special use

When commissions on land go as high as 10%, it’s usually because of the legwork that goes into that type of land. For example, land for mobile homes requires getting maps, septic information, and drainage information and testing out the well for water.

Plots for manufactured homes can be a lot cheaper than a property that's ideal for residential or commercial development. If the land price is as low as $50,000 or less and the plot is several acres, your agent may consider $5,000 a fair commission. After splitting that fee with the buyer's agent, they may walk away with $2,500 or less.

5. Standard closing costs still apply on land sales

In addition to realtor commission, you’ll have to pay other standard charges for the real estate transaction.

For example, title companies charge for escrow services. They hold the funds and provide a venue for the closing. While the buyer sometimes pays this cost, sometimes it’s split or paid for by the seller when the market is competitive.

Other costs include the basic owner’s title insurance policy and the title search that’s usually required. These costs go hand in hand with escrow charges, so if you’re the buyer, expect to pay for these charges out of pocket.

Depending on the state you’re buying or selling land in, you might also have to pay transfer taxes, which are just a fraction of a percentage of your overall cost. For example, if you sell a $1 million tract of farmland and transfer taxes cost $1.50 for every $1,000 of property value, you'd owe an additional $1,500 at closing.

How to calculate the total cost of selling land

To estimate you much it will cost to sell a parcel of vacant land, use the cost to sell calculator below:

Should I use a realtor when selling land?

Yes. Although real estate commission on land sales can be expensive, working with a realtor is still worth it for most sellers.

No matter what type of land you're selling, an experienced agent has the skill and industry connections to market your property to the right pool of potential buyers.

Listing your land for sale by owner can be tempting, but it rarely pays off in the long run. Research shows that after all the extra work involved with selling DIY, the average FSBO seller walks away with less cash, despite "saving" on listing fees.[2]

A better option for budget-conscious sellers is to work with a low commission real estate agent. These agents provide the same service as traditional realtors but offer more affordable rates. This increases the likelihood that you'll find a buyer quickly AND walk away from your sale with as much money as possible.

FAQ about commission on land sales

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The post Typical Real Estate Commission on Land Sales appeared first on Semya-Moya.

If there’s one thing you can know for sure in this life, it’s that you’re going to be paying taxes. Real estate is no exception to this rule. While US tax law is filled with many subtleties and nuances that can be confusing to homeowners and tax professionals alike, there are three main types of taxes to be aware of: capital gains tax, real estate transfer tax, and property taxes.

In this article, we’re going to go over the Hawaii real estate taxes you’ll need to pay when either buying or selling a home in the Aloha State. We’ll also give you some tips to lower your tax exposure no matter what side of the market you’re on.

Will You Have to Pay Taxes When You Sell Your Home in Hawaii?

Sales tax is not applied to property sales on either a federal or state level. However, if your home appreciated in value since you bought it, you may need to pay capital gains taxes on your annual tax return.

Currently, if you are single and you’ve lived in the house for at least two out of the last five years, then the first $250,000 of profit is exempt from taxation. If you are married, the first $500,000 in profit is tax free.

There is one stipulation when it comes to claiming this tax break: you cannot exclude capital gains from another home sale within the past two years. That means that if you are single and sold one house for $250,000 of profit last year and then sell your current home for another $250,000, you will be taxed on all the profit from your most recent sale.

Hawaii also has regulations that apply to real estate investors in the state: FIRPTA and HARPTA. FIRPTA, or Foreign Investment in Real Property Tax Act, is a law that requires withholding of 15% of the sales price when property is sold by a foreign national. Similarly, HARPTA requires a withholding of 5% of the sales price when property is sold by an out-of-state resident. Keep in mind that these rates apply to the entire sale price, not just the capital gains realized.

How Much Are Real Estate Transfer Taxes in Hawaii (and Who Pays Them)?

When property is transferred from one party to another, many states and local municipalities levy a transfer tax as a percentage of the value being transferred. In the case of real estate property transfer, this tax burden usually falls on the seller, but each state can specify (or not specify) whether the buyer or seller will pay.

In Hawaii, this tax is referred to as the Conveyance Tax. The rate that the transfer is taxed at depends on its value. For Hawaii residents transferring under $600,000, the rate is 0.1% of the value, or 0.15% for non-residents. The rate slowly goes up in seven iterations until you reach the highest rate, which is 1% for property transfers of $10,000,000 or more, and 1.25% for non-residents.

In most cases, the seller takes responsibility for the transfer tax, the only exception being if the property is sold by the United States, the State of Hawaii, or any instrumental agency of the two. Since the tax rates go up based on sales price, it may behoove sellers to lower their prices slightly if they are right on the brink of a rate hike. In order to make an informed decision regarding pricing your home to reduce tax exposure, speak with a qualified real estate agent.

How to Calculate Property Taxes in Hawaii

Property taxes are only paid at the state and local levels. Luckily for homeowners in Hawaii, the state has the lowest average property tax rate of any state in the country, making it that much easier for residents to enjoy the islands’ pleasant tropical climate.

The average statewide property tax rate is 0.27% of the home’s value. Considering the median home value is $563,900, home buyers can expect to pay approximately $1,529 annually in property taxes if they own a home valued at somewhere around the median.

It’s important to note that property tax rates vary based on the county you live in. Honolulu County, for example, has an effective tax rate of 0.28%, meaning that a home at the median value would rack up an annual tax burden of $1,578.92. In contrast, Maui County, which has the lowest effective property tax rate in the state (and thus the country) at 0.18% would only create a tax liability of $1,105.02 for a median-valued home.

Tax Breaks for Hawaii Home Buyers & Sellers

Both buyers and sellers in Hawaii may be eligible for tax breaks and deductions. Here are a few of the best options for reducing tax exposure.

Tax Breaks and Credits for Buyers

Home exemption: Homeowners in Hawaii are allowed to take a $48,000 exemption from the value of their home. This means that if you buy a home for $500,000, you would only be taxed on $452,000. This significantly lowers your tax exposure, but only applies if the home is your primary residence and you filed the necessary paperwork by December 31 of the preceding tax year.

Mortgage interest deductions: All home buyers in Hawaii are eligible for the HHFDC mortgage credit certificate program. This allows home buyers to claim up to 20% of their paid annual mortgage interest as a tax credit on their federal income taxes.

Tax Breaks and Write-Offs for Sellers

Pre-sale improvements: If you make significant improvements to your home which add value or restore it to like-new condition, you can deduct the expenses. However, the deduction cannot be taken in the year that you incur the cost. Instead, the expenses are deducted in the year that you sell the home.

Mortgage Interest: If you have remaining mortgage debt when selling your home, you may be eligible for a deduction. Currently, home sellers can deduct up to $750,000 of interest on a mortgage debt.

Home sale costs: Any costs associated with selling your home can be deducted at the federal level. These costs include real estate agent fees, staging costs, and pre-sale inspection expenses, among others.

Since the amount of tax breaks and deductions you can claim depends so heavily on the region you’re buying or selling in, it’s essential to work with a tax professional to ensure that you are taking every deduction possible. Going over your tax return with an experienced tax preparer or accountant is by far the best way to effectively reduce your tax exposure.

Whether you’re buying or selling a home, Clever can help. Clever connects you with top-rated and highly experienced real estate agents in your area that can help you get top dollar for your home as a seller, or get a great deal as a buyer.

»FIND:Top Real Estate Agents in Hawaii

If you’re a buyer, you may qualify for Clever Cash Back when you work with a Partner Agent, depending on the state you're in. To get in touch with a qualified real estate agent in your area, just fill out our form and we’ll contact you shortly.

If you’re a seller, Clever can connect you with agents that will list your home for only $3,500 or 1.5% of the closing price. To speak with an experienced local real estate agent, simply complete our form and someone will reach out to you soon.

The post The Ultimate Guide to Hawaii Real Estate Taxes appeared first on Semya-Moya.

A real estate sale is a complex and high-stakes transaction.

New technologies and services may be redefining the way we buy and sell property, but most people still choose to work with a realtor when it comes time to actually navigate the process.

Broadly speaking, there are two different types of traditional real estate agents:

1. Listing / Seller’s Agents: Help you price, market, and sell your current home.
2. Selling / Buyer’s Agents: Help you search for, make offers on, and purchase your new home.

In this guide, we’ll walk you through the different services provided by listing and selling agents, explain why it’s important that both sellers and buyers are represented individually, break down the typical fees agents charge — and offer tips on how to avoid them.

If you want to skip the reading and get answers from a local real estate agent instead, Clever can help!

> Get in touch to learn more and connect with top agents near you.

Note: our referral service is 100% free and there's no obligation to sign. Interview as many agents as you'd like until you find a great match.

JUMP TO SECTION

• What is a listing or seller's agent?
• What is a selling or buyer's agent?
• Can a listing agent also represent the buyer?
• Who pays realtor fees?
• Can you negotiate commission rates with the listing agent?
• Can you buy or sell a house without a real estate agent?
• How to find a top realtor
• Top FAQs about listing and selling agents

What is a listing or seller’s agent?

As the name suggests, a listing agent lists property for sale on behalf of the property owner.

Because the property owner is the seller in a real estate transaction, listing agents are also known as seller’s agents.

If you’ve ever seen a lawn sign with a realtor’s name and number, you’re looking at the smiling face of that property’s listing agent.

But the role of a listing agent goes far beyond putting up a "For Sale" sign.

Listing agents represent owners through every step of the selling process, from putting the property up for sale to closing a deal and handing the keys to a buyer.

These agents bring a wealth of market knowledge and real-world experience that lets them gauge when to list a property, how to market it, and how much to ask for in order to maximize a property’s profitability while minimizing its time on the market.

Typically, sellers will sign with listing agents under an exclusive right-to-sell listing agreement that grants them (or their brokerage) sole rights to the sales commission.

In return, the listing agent has a fiduciary duty to represent the seller’s best interests in negotiating the sale of their property.

What does a listing agent do for a home seller?

• Offers local housing market expertise: If you’re looking to sell your home, chances are good you’ve been out of the market for a while. A good listing agent has a strong understanding of the areas they serve and the state of the housing market as a whole. Their up-to-date knowledge of comparable properties ("comps," in the lingo) is what allows them to perform the comparative market analysis that sets the stage for your entire sales strategy.
• Prices the property to sell: Accurately pricing property is perhaps a listing agent’s most important role. If the price is too high, the property might languish on the market and look unappealing to prospective buyers who wonder what the issue is. And if the price is too low, the property will sell for less than it’s worth and undercut the seller’s profit. But when the price is just right, the property should sell right at the sweet spot of maximum profit and minimum time on market.
• Preps, stages, and advertises the property for sale: Listing agents know what sells a house and what turns prospective buyers away. They can suggest quick home repairs that will disproportionately increase market value. They can professionally stage the property for showings — a critical step, as staged homes sell for an average of 17% more than their non-staged counterparts. Finally, listing agents can coordinate professional photography and advertising that gives properties a competitive edge on listings sites.
• Lists the property on the MLS: The Multiple Listing Service, or MLS, is a comprehensive database of real estate listings compiled by licensed real estate agents throughout the United States. Since the majority of all properties are discovered through this catalog, it’s a great disadvantage for a property to go unlisted. While real estate agents alone can list on the MLS, some agents will charge a flat fee to sellers who wish to be listed but don’t require any of the other services listing agents provide.
• Handles showings and open houses: Bringing in potential buyers is the best way to sell a house, and listing agents spend their weekends doing just that. At an open house, agents talk up a property, keep it safe, and act as an objective presence to make prospective buyers comfortable (nobody walks to walk through a house while the owner watches anxiously). The listing agent also knows to disclose all legally required information — like recent deaths or known material defects — that might otherwise become an issue down the line.
• Screens potential buyers: Anyone who’s sold an item on eBay or other classified sites knows just how frustrating it can be to separate serious buyers from thrift shoppers. The same is true on the real estate market, and listing agents know how to cut the wheat from the chaff when dealing with house hunters. A good agent will screen potential buyers by checking credit scores, mortgage pre-approvals, and the like to ensure that the property is being shown to serious parties — not just shown off for fun.
• Negotiates offers on behalf of the seller: Offers to buy a property are about more than just money. The back and forth between sellers and buyers often includes stipulations about closing dates, commissions, contingencies, and more. And even once an offer is accepted, closing a property sale means wading through a mire of legal obligations and financial due diligence. A listing agent will handle all of this paperwork in a way that best protects the seller’s interests — and their sanity.
• Helps with paperwork and closing: Did you know that in some states there are limits on the types of repairs that a buyer can request from the seller? How familiar are you with regional rules governing residential property disclosure? Selling a home is a high-stakes — and regulated — transaction. An experienced agent will help you navigate the sea of legal documents, contracts, and tax procedures to ensure you don’t inadvertently overlook an important detail that could result in an audit or lawsuit after closing.

Did you know?

For an average property sale, the listing agent spends nine hours working behind the scenes for every one hour they spend working directly with the seller.

What is a selling or buyer’s agent?

Generally speaking, the two parties involved in a real estate transaction will each have their own agent assisting them with the sale — the seller’s agent and the buyer’s agent.

The buyer’s agent is, somewhat confusingly, also referred to as the selling agent.

That’s right: the terms "buyer’s agent" and "selling agent" are interchangeable, and both refer to the real estate agent who represents the buyer in a property transaction.

Properly speaking, a buyer’s agent becomes classified as the selling agent only once a sales contract has been signed.

In this article, however, we use the term "selling agent" to refer to a buyer’s agent during any stage of the real estate transaction.

The "selling" part of the name signifies the idea that a buyer’s agent brings a buyer — one of their clients — into the transaction.

In this way, they sell the property to a qualified buyer, on whose behalf they negotiate favorable terms and, thus, facilitate the sale.

Once a "Buyer Agency Contract" is signed, the selling agent has a fiduciary duty to the buyer — i.e., a legal responsibility to act in the best interest of the buyer, just like a listing agent’s responsibility to a seller.

That means that by law, they must remain loyal to the buyer’s best interests, disclose all pertinent information, act confidentially, and — of course — negotiate the best price.

What does a selling agent do for a buyer?

• Helps buyers find financing: To demonstrate to sellers that they’re serious, many buyers seek pre-qualification or pre-approval for mortgages. Selling agents can connect buyers with credible lenders before they ever step foot in a prospective property. This financial backing will ensure that when a buyer is ready to make an offer, they can do so quickly and with confidence.
• Discovers new properties: Selling agents have access not only to properties on the MLS, but to a wide network of agents and listings — called pocket listings, as in tucked away in their pocket — that buyers would never come across on their own. Using this comprehensive catalog, selling agents are able to pick out the properties most suitable for their clients and expedite their house hunting journey.
• Coordinates and guides property showings: This is the most visible role a selling agent plays: walking their clients through the prospective properties they’ve selected for them. Here, buyers benefit from more than just companionship: selling agents provide a tour full of objective analysis and an opinion informed by knowledge of their client’s needs.
• Ensures properties are up to par: Selling agents have the same in-depth knowledge of the housing market as their listing counterparts, and understand whether a property has been fairly priced and how it can be expected to increase — or decrease — in value over time. And before a deal goes any further than an offer, a good selling agent will arrange a proper inspection and insist that the seller cover necessary repairs and closing costs.
• Negotiates offers on behalf of the buyer: The selling agent acts as an objective legal representative for the buyer, and is responsible for presenting offers and counter-offers to the seller. In addition to a deep understanding of the complicated closing process — and all the miscellaneous costs and legal issues that come with it — selling agents are capable of negotiating neutrally, absent the intense emotions that buyers can feel when bidding on a new home.
• Helps with paperwork and closing: Buying a home is a complicated process. It involves a huge amount of paperwork, disclosures, and legal documentation. Agents have extensive experience with paperwork, contingencies, and the other legal ins and outs of the home buying process. They’ll help ensure your closing goes smoothly and that you don’t get any nasty surprises down the road.

Can a listing agent also represent the buyer?

The question of whether a listing agent, who represents the seller of a property, can also represent the buyer of said property is both an ethical and legal one.

But to keep things simple, the answer is yes — but only to a certain extent, and only in certain states.

Such an arrangement is called a "dual agency" sale, and this is broadly defined as any real estate transaction wherein the listing agent and selling agent work at the same brokerage.

Note that the two agents don’t have to be working together to qualify the sale as dual agency, because they share a mutual interest regardless — maximizing the commission paid out to their brokerage.

In the most extreme case, a single person can act as both the listing and selling agent for the same property.

This is called "dual representation," and the practice — where it’s legal — must be disclosed up front and agreed to by all parties.

Drawbacks of a Dual Agency in Real Estate

Proponents will argue that dual representation makes for more efficient communication (as there’s one less agent involved) and a wider pool of properties and buyers (as conflicts of interest are no longer disqualifying).

In reality, the only winner in a dual representation deal is the real estate agent who gets to keep double the commission for half the work.

Dual Agency Cons

• Conflicting interests: Agents cannot legally advise one client over another.
• Weakened bargaining power. Neither the seller’s nor the buyer’s interests are advocated objectively.
• No fiduciary duty: Agents do not act in their clients’ best interests, only their own.
• Limited perspective: With just one agent or brokerage involved, there are no external checks and balances on negotiations.
• Reduced representation: Sellers and buyers must hire separate attorneys if they want personal advice instead of relying on their agent.
• Mutual confidentiality: Agents are prevented from sharing information that might otherwise be used to benefit their client.
• Unethical at best, illegal at worst: As of 2019, Dual agency sales are banned in eight U.S. states — Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont.

Who pays realtor fees, the seller or the buyer?

Real estate brokerage is a commission-based business, meaning that realtor fees are a percentage of the final sales price.

That means that nobody gets paid — neither the listing agent nor the selling agent — until a deal closes and the property changes hands.

The downside of this is that realtor commissions scale with property prices. The upside, and the reason this structure works so well, is that real estate agents are just as eager to make sales as owners and buyers are.

Once the ink has dried on a deal, the standard commission rate nationwide is 6% of the final sales price, split evenly between both real estate agents. This is called a "co-op commission" and is by far the most common payout structure for real estate transactions.

Because this commission is paid from the sales price, which by definition belongs to the property seller, the realtor fees for both agents are typically paid for by the seller.

If you’re wondering why the property owner has to pay both the listing agent and the selling agent, consider the alternative. If you sell your house but make the buyer pay their agent’s commission, the price of your house has just increased by the cost of that commission. This can turn the buyer off your property or price them out of the deal entirely.

It may sound nice to save an extra 3% on your property sale, but that can only happen if the property actually sells — and it’s the selling agents who make that happen. It’s almost always worth paying them that 3% to do so.

For this reason, most sellers simply build in the cost of commission into the listing price of their property. Incentivizing selling agents in order to attract qualified buyers is simply considered a cost of doing business.

How much is listing agent commission?

In almost every case, the listing agent for a successful real estate transaction will earn 3% of the sales price, paid by the seller.

Let’s say you list your house for $350,000 at your agent’s recommendation.

Because this is a competitive price for your local market, you quickly attract a selling agent whose buyer offers you the asking price.

Ignoring other costs involved with selling a house — repairs, marketing, legal costs, etc. — you’ll owe your listing agent a commission of $10,500.

Of course, you’ll also owe your buyer’s selling agent the same amount, for a total of $21,000 owed in commission.

How much is selling agent commission?

The typical commission for a selling agent is 3% of the sales price, paid by the seller.

Because buyers don’t pay the commission for their selling agents directly — the costs are built into the list price of almost every property on the market — there are few good reasons for buyers not to work with qualified agents who can represent their interests.

Though an agent-less buyer could try submitting lower offers on the basis of reduced commission fees for the seller, in reality this would be a challenging negotiation to pull off. Listing agents and sellers alike almost always prefer to negotiate with serious, properly-represented buyers.

Fun Fact

A 2016 report from the National Association of realtors (NAR) suggests that working with a selling agent to buy a home is an generation-spanning preference. 85% of Younger Boomers, 87% of Gen Xers, and 89% of Millennial purchasers made use of a buyer’s agent when purchasing a home that year. And despite a fluency with independent, digital purchasing, a full 92% of Younger Millennial homebuyers worked with a selling agent in 2016 — more than any other age range.

Can You Negotiate Commission with the Listing Agent?

While the typical commission rate for a listing agent is 3%, it’s possible to negotiate a lower fee depending on the temperature of your market, the value of your property, and — naturally — your negotiating skills.

Know, though, that most agents will hesitate to compromise their rates even under ideal circumstances: only 15% of sellers are successful in talking down their listing agent’s commission fee.

And the drawback of this success, or even of a failed attempt to negotiate, is at best a corresponding reduction in services and support — at worst a strained relationship./

If you’re really set on negotiating, here are some tips to get the most bang for your buck without rubbing your agent the wrong way:

Tips for Negotiating realtor Commission Fees

• Know your market: One of the biggest assets your listing agent brings to the table is their knowledge of your local housing market, and your property’s place within it. If you expect to bargain, you need to know whether you’re in a seller’s or buyer’s market, what a reasonable asking price for your property is, and how quickly you can expect an offer to come in. You can only reasonably expect to negotiate under conditions where your property needs minimal agent intervention to sell.
• Assess your needs: Negotiation isn’t a one-way street. If you ask your agent to cut their commission, they’ll likely insist on cutting back their services to match. A full-service listing agent will price your home, suggest repairs, stage and market the property, set up open houses, negotiate offers, and more. Decide which of these tasks, if any, you’d be willing to take on independently.
• Work with a real estate referral service: No agent wants to strike a separate bargain with each of their clients individually — that’s why most of them stick so firmly to their established commission rates. However, referral services like Clever send agents a high volume of new business, which gives them more leverage when it comes to negotiating fees on their clients’ behalf.

Can you buy or sell a house without a real estate agent?

While the majority of home buyers and sellers choose to work with a real estate agent, it’s certainly possible to navigate a property sale without one — provided you’re willing to put in the work.

Selling a House Without a Realtor

Selling a house without a listing agent is called listing FSBO, meaning For Sale By Owner.

This option is appealing primarily because not hiring a listing agent means not paying a listing agent’s commission. Some owners believe that this 3% of their home’s value is worth the hassle of selling on their own.

However, even for sellers willing to put in the leg work of prepping, staging, marketing, showing, and closing on a sale, there are some serious drawbacks to listing without an agent. On average, homes initially listed FSBO take 20 days longer to sell than those listed on the MLS by a realtor — and when they do sell, they sell for less. And remember that after all that, sellers are still on the hook for the 3% commission owed to the selling agent.

Still, the appeal of saving that other 3% is enough that 36% of sellers initially list their home FSBO. Less than a third of these, just 11%, are successful — and most in this category knew their buyers personally beforehand. The rest eventually enlist the help of a realtor to get their property sale back on track.

> Learn how to sell your house without a realtor.

Buying a House Without a Realtor

If you’re buying a house, it makes even less sense to forgo the help of a qualified real estate agent.

Because the seller is ultimately responsible for paying commission to the selling agent, you have nothing to lose by partnering with a professional who can help you find financing, show you prospective properties, and negotiate on your behalf.

As a matter of fact, a buyer without an agent may find themselves unable to bid on certain properties at all. Some listing agents will refuse to accept an offer made directly by a buyer, as this can lead to a conflict of interest, or at least the appearance of one.

Without a knowledgeable selling agent representing the buyer’s best interests at the negotiating table, a listing agent may feel a sense of fiduciary responsibility to the buyer that would undermine their legal duty to the seller.

This is similar to the competing interests an agent faces when acting as a dual representative.

> Learn more about buying a house without a real estate agent.

How to Find a Top Realtor

Whether you’re searching for a listing agent or a selling agent, you want to be sure you find a good match for you and your real estate goals.

Generally speaking, you want to connect with a licensed realtor who has years of experience in the market you’re looking at. More specifically, and more subjectively, you want to work with someone you get along with and who you can trust to represent your interests.

Tips to Find the Best Real Estate Agent in Your Area

• Check the web: Begin your search for a realtor by casting a wide net. Search online for local recommendations, check out agency websites, read reviews of individual realtors, and get a basic sense of the options available to you.
• Check the neighborhood: Take a look at the "For Sale" signs in the area around which you’re selling or buying. Who stands out to you? Who’s advertising themselves successfully? Who has the most lawn signs? While you’re at it, make sure to ask your neighbors if they have any recommendations or advice.
• Work with a real estate referral company: Real estate referral networks are a great way to fast-track your search process. While some services like Zillow will sell your information to the highest bidder, the best companies will be out extensive networks of top-performing real estate agents across the country, then make recommendations based on the specific needs and goals of the seller or buyer. What’s more, most of these services are free and no-obligation — learn more.
• Attend open houses: The best way to check if you get along with an agent is to meet them. An easy and low-commitment way to do this is by attending an open house they’re hosting. Do they make you feel welcome? Are they good at talking up the property? Can they answer all your questions? Most importantly: would you want them hosting an open house for you?
• Ask about their track record: Once you’ve narrowed down your search, contact the agents you like directly. Ask them simple questions about their experience in the region, the typical price range they represent, how long their properties stay on the market, and how they might go about selling your property in particular.

Selling or Buying a House with Clever

While you can certainly find a top realtor on your own — if you know what to look for — there’s an even easier way.

Clever is an innovative online service that connects home sellers and buyers with a nationwide network of top-performing, full-service real estate agents from major brokerages like RE/MAX, Keller Williams, Century 21, and more.

All of the agents we partner with run traditional, full-commission real estate businesses; however, they’ve agreed to offer significant discounts to sellers and buyers who connect with them through our referral service.

If you’re selling a house, your Clever Partner Agent will offer full service and support for just 1.5%.

> Learn more about selling a home with Clever.

On top of your agent savings, we also offer Clever Cash Back to eligible buyers. Once you've closed on your new house, Clever will send you cashback. This money is all yours, so you're not restricted to spending it on closing costs, agent fees, or the house in general. Consider it a token of our appreciation.

> Learn more about buying a home with Clever.

How does Clever help you save money?

Traditional real estate agents must attract their own business, be it through customer referrals, repeat business, or advertising themselves (check your nearest bus bench for an example).

This marketing work takes time and money that must be made up in commission fees in order for the business to be profitable.

That’s where Clever comes in.

We connect sellers and buyers like you with full-service agents in your local market, and this steady stream of clients allows agents to focus less on their own marketing and more on their real business of real estate.

This higher volume of quality clients means Clever Partner Agents can lower their commission rates while still turning a profit.

Next Steps

If you’d like to interview top agents in your area who can help you buy or sell a home and save thousands, fill out the form below.

One of our representatives will be in touch to answer any questions you might have and connect you with one or more of our top-rated agents in your area for a no-obligation consultation.

Interview as many agents as you’d like until you find the perfect match — or walk away at any time. Our referral service is 100% free and there’s no obligation to move forward with any of our recommendations.

Top FAQs About Listing and Selling Agents

What’s the difference between a listing and selling agent?

A listing agent is also known as a seller’s agent and represents the interests of the property owner in a real estate transaction. Listing agents help sellers price, stage, and market their property, show it off to prospective buyers, and negotiate offers.

A selling agent is also known as a buyer’s agent and represents the interests of the property buyer in a real estate transaction. Selling agents discover properties and show them off to buyers, provide advice and assistance when making offers, arrange inspections, and ultimately close deals on behalf of their clients.

Listing agents and selling agents work together on behalf of their respective clients to negotiate mutually favorable terms for a property sale. Both are paid a commission of the sales price in return for this work, generally a total of 6% paid by the seller and split equally between them.

> Connect with a top-rated listing or selling agent anywhere in the U.S.

Can a listing agent be a buyer agent?

Yes, a listing agent can also represent the buyer in a real estate transaction — provided they don’t live in Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont, where the practice is illegal.

Such an arrangement is called a dual agency sale when the listing agent and selling agent work for the same brokerage, and a dual representation sale when the listing agent and selling agent are one and the same.

In either case, the practice is ethically dubious because it presents a clear conflict of interest. Simply speaking, the same agent (or brokerage) cannot observe a fiduciary duty to both a seller and a buyer simultaneously.

Because of this conflict, there are clear restrictions governing dual agency sales and limiting their usefulness to sellers and buyers.

A dual representative cannot advocate for either party’s interests — as they compete with one another directly — and must therefore remain neutral.

This nullifies one of the primary benefits of working with a real estate agent in the first place: professional advocacy at the negotiating table.

In addition, a dual representative has a personal incentive to maximize their own commission. This incentive is not held in check by a competing representative as it would be in a standard real estate transaction.

> Learn more about the drawbacks of dual agency sales.

Why does the seller pay the buyer agent commission?

It may seem strange that the seller is responsible for paying the buyer agent’s commission — if they’re working for the buyer, shouldn’t the buyer be paying for them? — but remember that the point of a commission is to encourage selling, not buying.

When the seller offers a commission to the buyer’s agent in addition to their listing agent, both parties are incentivized to close the deal.

The alternative is either that the buyer’s agent gets no commission (in which case, they have no reason to sell the house to their client) or that the buyer becomes responsible for paying their agent’s commission themselves (which would increase the price of the sale and turn buyers away).

In short: sellers want to attract buyers, and they can do that by paying a commission to buyer’s agents. This additional cost of business is simply built into the asking price for their property.

What’s the difference between a seller’s agent and a buyer’s agent?

There are two parties in every real estate transaction: the seller and the buyer.

Generally, each of these parties is represented by a professional real estate agent who negotiates the terms of the deal on their behalf.

Simply enough, these agents are referred to as the seller’s agent and the buyer’s agent, respectively.

Seller’s agents are also responsible for tasks like pricing, staging, and marketing a property, as well as screening prospective buyers and evaluating offers.

Buyer’s agents are in charge of finding suitable properties for their clients, arranging showings, and ensuring that prices are fair and based on appropriate valuations.

A seller’s agent can also be referred to as a listing agent, because they list a property on behalf of a seller.

Similarly, a buyer’s agent is also known as a selling agent, because they sell a property to the buyer they bring aboard (and represent in the deal).

Related Articles

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6% Real Estate Commission Explained

A 6% real estate commission is considered standard, but how much do sellers pay today? Learn whether 6% commission is the best choice for you.

The post What is the Difference Between a Selling and Listing Agent? appeared first on Semya-Moya.

On average, title insurance costs range from $1,970-2,760 across the Owner's and Lender's policy premiums and title fees. However, costs can vary dramatically depending on your location and the sale price of the home.

Title insurance costs can be broken down into three categories:

• Lender's policy premiums
• Owner's policy premiums
• Title fees

In this article, we cover everything you need to know about title insurance costs, including some useful tips on how to save big.

JUMP TO SECTION

• What is title insurance
• How much is title insurance?
• Title insurance costs by policy type
• Title insurance costs by state
• How to get cheap title insurance

What is title insurance?

Title insurance policies help shield lenders and home buyers from previously undisclosed title defects or problems during a property’s transfer of ownership, including public record errors, undisclosed liens, and illegal deeds.

In the event of a title dispute during or after the sale, the title insurance company may be responsible for covering some or all of the associated costs specified by the policy.

» MORE: What Is Title Insurance?

There are two types of title insurance policies:

• Lender's title insurance, which protects mortgage lenders and is typically required
• Owner's title insurance, which protects the homeowner and is optional

Title insurance is different from homeowner's insurance; it won't pay for damages to your home or your possessions and doesn't include any personal liability coverage.

Unlike homeowner's insurance — where you have to continually renew your policy — title insurance is a one-time cost that lasts for as long as you own the home.

During a typical home sale, who pays for title insurance — the buyer or seller — is negotiable. However, the seller will typically pay for the owner's title insurance, whereas the buyer is almost always expected to cover the cost of the lender's policy.

How much is title insurance?

Title insurance costs can vary, but for a typical home, expect to pay around $2,000, all-in, for title insurance.

When we talk about the cost of title insurance, we're usually referring to a combination of three different categories of fees, rather than a single charge:

• Owner's title insurance policy premiums (~0.4%): The price of the policy that protects the homeowner.
• Lender's title insurance policy premiums (~0.1%): The cost of the lender's title insurance policy. This policy is typically much less expensive than the owner's policy.
• Title fees (>$1,000): The title insurance company will charge you for the work associated with issuing the policy. Typical fees include title abstract, deed preparation, and title closing fees. Costs can vary dramatically depending on where you live and the title company you choose.

_{Price ranges based on data from Stewart Title for home's sold for $200,000 and $400,000.}

Title insurance costs by policy type

The cost of your owner's title insurance premiums will depend on what type of policy you purchase. We found that the cost difference between basic and enhanced policies was around 11%.

There are currently two types of owner’s title insurance policies certified by the American Land Title Association® (ALTA), the trade association that represents the title insurance industry nationwide.

Buyers in some areas will be able to choose between the ALTA Owner’s and Homeowner’s policies — but in others, only one or the other may be available.

Different states will make ALTA Owner’s or Homeowner's the default option. If you want more or less coverage, you’ll need to make a specific request.

So how much title coverage do you need? Is opting for less coverage to save money on title insurance a good idea?

The short answer: usually not!

The smart choice for most homeowners is choosing the expanded coverage that comes with the ALTA Homeowner's policy.

The extra protection that this policy affords is well worth the added $80-140. Also, remember that title insurance is a one-time cost. In other words, it won’t show up in your ongoing monthly home payments.

Title insurance costs by state

Title insurance costs can vary greatly depending on where you live. Based on our research, here's the title insurance cost ranges for $200,000 and $400,000 homes in each state:

^{* Premiums quoted are for simultaneous issue rates, where both policies (the lender's and owner's) were purchased from the same title insurance company.
** Iowa provides homebuyers title coverage through the state-sponsored Iowa Title Guaranty program.}

How to get cheap title insurance

Title insurance is one of the key areas where you may be able to save money on closing costs when buying a home.

With a little bit of extra effort and due diligence, you could save yourself hundreds or thousands of dollars on title insurance. Here's how:

Negotiate to have the seller cover the title insurance costs

Who pays for title insurance is 100% negotiable. If you’re buying a home, you may be able to get the seller to cover some or all of the title insurance costs. In some states, it may even be customary for the sellers to purchase the owner's title insurance policy.

» MORE: In which states do sellers typically cover title insurance costs?

Shop around and compare title companies

You may be able save a lot of money by comparing title rates and fees before choosing a title insurance company. We've found that title fees can vary by as much as 40%, depending on which provider you go with.

Though title fees can vary significantly, title insurance premiums may not. These premiums are regulated by each state's department of insurance, so they likely won’t change much from company to company.

Ask for a reissue rate

If you're buying a home from a seller who purchased it less than 10 years ago, you're eligible for a special title insurance pricing option called a "reissue rate." This is a reduced price offered because the new title insurer can essentially extend the previous policy.

The reissue rate will typically be around 40% less than the standard rate, which translates to savings of approximately $468-749 on title insurance premiums.

Buy both policies from the same title insurance company

You can get a discounted rate on your title insurance when you buy lender's and owner's title insurance from the same company. This is called a "simultaneous issue rate."

Based on our research of title insurance premiums, choosing to buy both policies from the same title insurance company could save you between 21-44%:

Potential Simultaneous Issue Savings: by City and Home Value

^{Figures represent the cost difference in title insurance premiums for both owner's and lender's policies, as provided by Stewart Title.}

Methodology

The cost estimates for title insurance featured on this page come from 345 price quotes from Stewart Title, First American Title, as well as an assortment of other title insurance companies. This data was collected in July, 2020.

The details we used to collect these quotes were:

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Buyers ask for seller concessions to reduce the amount of money they have to pay at closing. Remember: buyers have to bring cash to pay for their closing costs — typically 2-5% of the home’s sale price — in addition to their down payment.

There are limits to how much buyers can receive. Seller concessions are typically capped at 6%, but the exact amount depends on what kind of mortgage the buyer is getting and how much they're putting down.

If you're buying a home and hope to get a concession from the seller, you should know that you'll likely have to make a strong all-around offer to get them to accept. Seller concessions aren't required, and sellers don't have to grant them to their buyers. Depending on the situation, your offer may have to include a strong sale price to be accepted.

JUMP TO SECTION

• What is a seller concession?
• What costs can a seller concession cover?
• Maximum amount of seller concessions by loan type
• When should I ask for seller concessions?
• When would a seller agree to concessions?
• Can seller concessions exceed closing costs?

What is a seller concession?

A seller concession can be anything that a seller gives to their buyer during the home sale process.

Most commonly, seller concessions are something that sellers grant at a buyer's request; they are conceding something to get the deal to go through. Seller concessions can also be offered preemptively by some sellers, but this is less common. After all, why would they give up more than they have to when selling their home?

Buyers usually ask for seller concessions to help pay for closing costs. Buyer closing costs — which include fees from their mortgage lender and title company — typically range from 2-5% of the home’s total purchase price.

For buyers who are short on cash — especially first-time home buyers — getting the seller to cover some of their closing costs may be the only way the buyer can afford to purchase the home without totally depleting their savings.

While concessions most often pay for buyer’s closing costs, they can also take other forms:

• Payments for the home and pest inspections
• Repairs or credits for repairs to address issues revealed during the inspection process
• A home warranty policy purchased for the buyer

How seller concessions can enable buyers to offer higher prices while saving money

Buyers sometimes negotiate seller concessions as a way of enabling them to be able to make offers with more competitive prices. This can let buyers effectively roll a portion of their closing costs into their mortgage. This saves them money upfront with the tradeoff that they have to pay interest on the higher loan balance.

It's typically a good deal for home buyers to use seller concessions as a way to reduce their initial out of pocket expenses, even if it means an increased mortgage payment. You'd have to own your home for a long time before the increased monthly payments exceeded the upfront savings you get by having the seller cover your closing costs.

Consider the following example where instead of offering $100,000 for a home listed for $105,000, a buyer presents an offer that matches the listing price but includes a $5,000 seller concession:

In this example, the buyer would have to own their home for about 17 years before the increased mortgage cost exceeded the upfront savings that resulted from the concession.

What costs can a seller concession cover?

When a seller agrees to pay for their buyer’s closing costs, their concessions can come in two forms: as a lump sum credited towards the buyer at closing or as a payment towards specific closing costs.

The closing costs that seller concessions can cover include:

• Home inspection and appraisal fees
• Mortgage points (a.k.a. "discount points")
• Settlement fees
• Title insurance
• Prepaid property taxes and homeowners insurance

» MORE: Who Pays Closing Costs?

Seller concessions cannot cover a buyer's down payment. Furthermore, the total amount that the buyer can receive will be capped based on their loan type (more on that in the following section).

Maximum amount of seller concessions by loan type

The maximum amount a buyer can receive in seller concessions is capped based on their loan type and how much money they put down.

Below, we've listed the maximum seller concessions amounts for conventional, FHA, VA, and USDA loans:

Note that if the home appraises for less than the sale price of the home, the seller concessions limits will be capped based on the appraised value rather than the home's purchase price.

When should I ask for seller concessions?

When buying a home, whether you should ask for seller concessions will largely depend on your financial situation, the housing market in your area, and the specific home you're interested in.

It may seem like a no-brainer to ask for a seller concession whenever you buy a home. However, in some cases asking for a seller concessions could sour your deal; you only want to make this request if it's the only way you can afford to buy a home or if you think the seller has a good chance of granting you a concession.

Some common scenarios where you should ask for a seller concession include:

• You're short on cash: If you don't have enough cash on hand to cover your closing costs, there's no harm in requesting a seller concession. You wouldn't be able to afford the home otherwise.
• You’re in a buyer’s market: If there are few interested buyers or an abundance of homes for sale in your area, sellers may be more likely to pay for your closing costs just so they can secure a buyer.
• The home's been listed for a while: If you're making an offer on a home that's been on the market for a while, you may have a greater chance at getting the seller to offer you a credit towards your closing costs. They may be eager to find a buyer and willing to make concessions.

When would a seller agree to concessions?

Agreeing to a seller concession isn't necessarily a bad thing for home sellers.

Sellers consider a variety of factors when evaluating an offer, including price, contingencies, and closing date. Choosing the offer that aligns with their goals and needs is in their own best interest; in some cases, those offers will include seller concessions.

» LEARN: How do home sellers evaluate an offer?

If seller concessions enable the buyer to make a stronger offer on price, they can be a win for both sides:

• The seller may earn as much as they would without offering the concession by getting a price closer to (or even above) asking.
• The buyer brings less money to closing since most of the offer price (unlike closing costs!) is covered by their mortgage.

Can seller concessions exceed closing costs?

Seller concessions typically cannot exceed the closing costs. Mortgage lenders won’t allow home buyers to walk away from the transaction with a cash credit from the seller; they want to make sure you have "skin in the game" in the form of the full down payment you committed to.

If your closing costs end up being less than what you've negotiated in seller concessions, your best option is to buy discount points on the mortgage with whatever funds are left over. For example, if you've negotiated a $5,000 seller concession for a $200,000 home and your closing costs end up being only $3,000, you could use the extra $2,000 to buy one discount point on your mortgage and reduce the interest rate by 0.25%.

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Living your best life starts with where you live. It doesn’t matter if you’re new to town or a current resident, finding the neighborhood that fits your lifestyle and needs is the first step. Maybe you’re moving to Vancouver, WA, or looking for the best place to put your roots down, but don’t know what areas to consider.

Want to learn everything about the best places to live in The Couve? Here are the top five neighborhoods you should consider to live in Vancouver.

1. Cascade Highlands

Cascade Highlands made our list for its diverse housing options and amenities. This residential area offers a variety of options from apartment complexes to single-family homes.

The median home value for houses in Cascade Highlands is $348,400, while the median rent is $1,806 — which is over the state median rent of $1,709. Homes in this area appreciated 4.5% in 2018. In 2019, real estate experts expect a rise in home value appreciation by 1.8%.

Cascade is home to highly rated schools and great parks. This area also features a variety of shops and restaurants. The great home appreciation rates, housing options, and neighborhood amenities make it ideal for young professionals and families alike.

2. Village at Fisher’s Landing

We chose to feature this neighborhood in our list for its low crime rate and amenities. This area is near the airport and close to the heart of the city.

The properties at Village at Fisher’s Landing have a median value of $488,600, by contrast, the median rent is about $2,000. which is over the state median. In 2018, homes in this neighborhood rose in value by 4.5%, while real estate experts foresee a rise of 2.0% in home values within 2019.

This neighborhood offers a wide array of restaurant options to satisfy any palate from coffee shops to breweries. The Village is only a 20-minute drive from Portland, giving its residents access to fine shopping and restaurant options. Living in this area may come with a high price tag; however, its accessible location and amenities make it a great option for home buyers looking to live in a suburb.

3. Fisher’s Creek

Fisher’s Creek made our list for its diverse architectural styles and location. This area is only 10 miles away from the heart of Vancouver.

The median home value for properties in Fisher’s Creek is $394,800, while $2,019 is the median rent in this neighborhood. Fisher’s Creek homes appreciated 1.6% in 2018. Home experts expect property values to depreciate by 0.1% in 2019.

Fisher’s Creek Park is the heart of this neighborhood. The 1.9-acre park extends to the Fisher’s Creek wetland. This area features a playground and picnic tables perfect for family-friendly activities.

Although Fisher’s Creek's low appreciation rates might make you think twice about buying a home in this area, its amenities and location make it a great option for families and young professionals looking to put down their roots.

Looking to buy your dream home? Finding the right realtor makes all the difference!

The first step in your home buying journey is to find a top local realtor who's an expert negotiator and has proven experience in your area. The right agent can help you find the best house for your budget and priorities — and craft a winning offer so you don't miss out on your dream home.

The easiest way to find a great local realtor is to use a free service like Semya-Moya. Clever matches home buyers like you with top agents in your area so you can compare your options and choose a realtor who's the right fit for you.

You can interview multiple agents until you find the perfect fit, or walk away at any time - Clever's service is 100% free with no obligation. Fill out the form below to instantly request hand-picked agent matches now!

4. Oakbrook

We chose to feature this neighborhood for its diverse housing options and low crime rate. Housing options in this area range from apartments to single-family homes you may rent or buy. According to Niche, 52% of its residents are homeowners while 48% choose to rent their homes.

Oakbrook’s median home value is $310,400, contrarily its median rent is about $1,694 which is below Vancouver’s median rent price. Homes in this housing market rose in value by 6.6% in 2018. In 2019, experts forecast a 2.6% rise in home value appreciation.

This area is home to great schools — making it a family-friendly option. This neighborhood also offers easy access to public transport and parks. Oakbrook’s impressive home value appreciation rates, schools, and parks make it the most affordable family-friendly option on our list.

5. Bella Vista

Bella Vista made our list for its amenities and relaxed lifestyle. This neighborhood is home to a wide array of restaurants, shops, and fitness centers.

The median home value in this neighborhood is $356,600, while the median rent is around $1,837 which is over the state median. Bella Vista homes appreciated by 3.4% but experts predict a rise in home value of only 0.5% in 2019.

Bella Vista residents cite the relaxing and calm atmosphere as the top feature of the neighborhood. This area also features easy access to public transportation. The low potential rise in home value might make you hesitate to buy a home in this area, but the diverse amenities and atmosphere make it ideal if you’re looking for a relaxed lifestyle.

Learning about the best places in Vancouver is the first step to find your dream home. However, contacting a local real estate agent will ease your home buying journey. A local real estate agent such as one of our Clever Partner Agents can provide guidance throughout the process from placing an offer to closing on your home.

Our agents can schedule on-demand showings, search for the right neighborhoods that meet your needs, and even help you save through Clever Cash Back. Contact Clever today to get connected with a realtor to buy a home in the best Vancouver neighborhood and save on closing costs in the process.

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Sorting out what property taxes or real estate taxes are applicable when buying or selling in New York can be a bit complicated. The state has many tax rates that vary from city to city across the state, and of course New York City has its own separate tax structure.

Having a solid grasp of these tax implications before closing on your New York home can make a difference on whether or not, and even when, to buy or sell. That may seem dramatic, but in a state with a median home price of about $300,000, taxes can add up quickly.

Property values are even higher in specific regions of the state. The New York City area has values almost twice as high, and many local counties and cities have their own taxes that further add up depending on the market value of local real estate.

By following this guide, you can prepare for the tax implications of your New York home sale. However, a local, expert real estate agent can best prepare you for the applicable taxes and guide you through the home buying process.

Will You Have to Pay Taxes When You Sell Your Home in New York?

When selling your home, the tax that can have the biggest impact is the capital gains tax. Capital gains is the profit you make on the sale of your home. This is typically the result of appreciation and any improvements you have made to increase your home’s value.

The long term capital gains tax rate is determined by your income level. The rates are 0% for those making under $39,000, 15% for those earning less than $435,000, and 20% for those with a higher income. For joint filers the income levels are slightly higher.

However, the federal capital gains tax also comes with an exclusion for the first $250,000 in capital gains earned, if you’ve lived in the home for two of the last five years. Most sellers avoid paying capital gains taxes because of this exclusion. Sellers in high value areas, such as New York City, may not be so lucky.

It is also a wise idea to work with a local realtor, or a tax advisor, when selling your home. New York treats capital gains as ordinary income. This could potentially lead to your tax bill being substantially higher when you sell.

How Much Are Real Estate Transfer Taxes in New York (and Who Pays Them)?

The state of New York charges a transfer tax on all property sales over $5,000. The rate is calculated as $2 in taxes owed for every $500 in real estate value, essentially a .4% rate. At the statewide median value of $300,000 this would come to $1,200 owed.

Transfer taxes can also be imposed by local jurisdictions. New York City has one of the most progressive transfer taxes in the country and charges a 1% fee on any real estate transaction over $25,000 in addition to the state fee. New York City goes further asses transfer taxes on homes valued over $500,000, a 1.4% rate, and additional 1% on homes valued over $1 million.

In New York the tax is typically paid by the seller, but should a seller be exempt, or payment otherwise be negotiated, the buyer would be responsible. The additional tax rates, such as the mansion tax in New York City, are usually paid by the buyer.

Transfer taxes are also an issue debated by government agencies every year, and in New York reform has recently been discussed. Because of this, and the differences from city to city across the state, you should check in with your expert, local real estate agent to plan for any taxes you may be required to pay.

How to Calculate Property Taxes in New York

Property taxes in New York as assessed every year based upon the market value of your home. However, the tax rate can be different every single year. This is because the rate is determined by the local jurisdictions tax levy, or the difference between their budget and all other collected revenues.

However, tax increases can only go up by 2% a year or by inflation, whichever is lower, and in reality assessments rarely happen every year. Many jurisdictions instead have a residential assessment ratio (RAR), which helps property owners determine if their assessment is above true market value.

With all these different tax rates, and separate rates for each jurisdiction, including counties, schools, and special districts, rates vary quite drastically across the state. The effective rates is highest in Orleans County, which reaches 3.46% of value. Hamilton County on the other hand only has a 1.13% property tax rate.

It should also be noted, surprisingly, that New York City has a separate property tax rate that is the lowest in the state. New York City divides properties by classes, with class one being mostly single family homes. These are taxed at an average effective rate of .85% in New York City.

Tax Breaks for New York Home Buyers & Sellers

Those who purchase a home in New York can look forward to several exemptions. Property taxes have a number of exemptions and credits that can help you save on their notoriously high tax rate.

The STAR credit provides a credit or exemption on school taxes to those with qualifying incomes. Other credits are provided for veterans, seniors, those with disabilities, and certain agriculture properties.

First time home buyers also have access to several tax savings programs. Federal programs also provide for significant savings with the mortgage interest deduction, property tax deductions, and many closing costs can also be deducted.

Sellers, of course, benefit from the previously mentioned capital gains exclusion. However, they also can deduct many of the costs associated with selling their home. Certain improvements, property taxes, and the cost of moving are all common deductions or savings sellers qualify for.

Keep in mind many of these deductions can vary state to state based on tax law. Federal and state deductions can also change with the political environment. Recent federal tax law capped property tax deductions at $10,000 and in New York reforms to property taxes have been a recent hot topic. All of these can have a financial impact on your transaction.

To keep apprised of all these local tax impacts, the latest market reports, and help finding your New York dream home, reach out to a Clever Partner Agent. Clever partners with expert, local real estate agents from all major brands and brokerages (Keller Williams, Century 21, etc.) who are willing to help you sell your home with ease and for top dollar.

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Whether you’re moving for work or just want a fresh start, it’s easy to see the allure of Chicago. The Windy City is growing its reputation as a hotspot for young professionals and singles, with a healthy job market, several colleges and universities, and a strong economic outlook.

There are 77 individual neighborhoods that make up this amazing city, many of which are ideal for singles that want to take advantage of everything Chicago offers. We’ve done the research for you and narrowed down five of the best neighborhoods, based on affordability, walkability, proximity to area attractions, and general look and feel.

The Loop

Named for the train tracks that circle the business district, the Loop is home to many of the city’s most iconic companies and buildings. It’s been ranked as one of the top three neighborhoods for young professionals, given its proximity to stores and businesses. Only 8% of the population here has children, so, for the most part, you’ll be among educated singles like yourself.

One of the major selling points is that many of the city’s attractions and activities are within walking distance. Museums, theater, nightlife, dining, and shopping can all be reached within minutes, so traffic isn’t usually an issue.

Home prices and rent in this neighborhood aren’t the most expensive in Chicago, but they’re not the cheapest either. The average monthly rent is around $2,000, while the median home value is $448,000. The majority of people in this neighborhood rent their homes, but given the abundance of things to see and do in the area, you’ll likely want to stick around for longer than the typical lease.

Printers Row

This old, affluent neighborhood has been touted as the best place to live in Chicago for many reasons, particularly in lower housing costs. It offers an urban-like look and feel complete with bars, restaurants, shops, and parks that are within walking distance of its residents.

Compared to population-dense neighborhoods like the Loop and River North, Printers Row is relatively small with just under 9,000 residents. Home values are nearly half the price of the Loop, while rent is also lower than in other areas in Chicago. Young professionals and singles are attracted to this neighborhood for the city experience without the high price tags of other neighborhoods near the waterfront.

River North

If you’re looking to get inspired by your neighborhood, River North is the place to live. This is Chicago’s fashion and art district, with tons of trendy boutiques, galleries, and restaurants lining its streets. People who live here say that just about anything they could need or want is conveniently located and mostly within walking distance.

Rent and home prices are a bit lower than other standout Chicago neighborhoods, with rent averaging $1,771 and a median home value of $370,565. The median income is just under $90,000, with the majority of residents having a college degree. The lower cost of living is particularly attractive to the younger crowd looking to relocate and grow their careers in Chicago.

Looking to buy your dream home? Finding the right realtor makes all the difference!

The first step in your home buying journey is to find a top local realtor who's an expert negotiator and has proven experience in your area. The right agent can help you find the best house for your budget and priorities — and craft a winning offer so you don't miss out on your dream home.

The easiest way to find a great local realtor is to use a free service like Semya-Moya. Clever matches home buyers like you with top agents in your area so you can compare your options and choose a realtor who's the right fit for you.

You can interview multiple agents until you find the perfect fit, or walk away at any time - Clever's service is 100% free with no obligation. Fill out the form below to instantly request hand-picked agent matches now!

Old Town

Stores, restaurants, and robust transit make this place a highly desirable area to live among singles. Step outside of your home and you could be at any number of retail stores, bars, or a baseball game within minutes.

Old Town is a bit on the expensive side, with a median home value of $471,000, but in this case, you’re getting what you pay for. It’s just a stone’s throw from the highly coveted Gold Coast neighborhood and all the prime waterfront that goes with it. The neighborhood itself tends to be safe, with residents touting it as a clean, friendly place to live.

West Town

Bordering Goose Island and the Chicago River, West Town is brimming with opportunities for singles and young adults. This is one of Chicago’s largest neighborhoods and has everything you could need in the city: restaurants, markets, parks, entertainment, and coffee shops, to name a few. Though expansive, it gives off a small-town vibe that gives you the best of a quiet neighborhood and big city living.

The median home value is on the pricier side at $431,000, especially considering the median household income is just $87,000 (lower than many of Chicago’s equally impressive neighborhoods). The beautiful blend of historic and modern architecture and abundance of activities lend much to its desirability.

Exploring the Best Neighborhood in Chicago

Are you craving views of Chicago Harbor, deep-dish pizza, and some of the best arts and culture in the country? Before you start packing, make sure you’ve done your research on the best Chicago neighborhoods that will make every moment you live there feel like home.

If you’re thinking of relocating to Chicago, the first step is to partner with an experienced local real estate agent. Clever Partner Agents are full-service agents that can provide guidance and support throughout the process. In addition, you may even be eligible for Clever Cash Back!

Connect with Clever today for a no-obligation consultation and let us introduce you to an experienced Chicago Partner Agent to make your transition into the Windy City a rewarding one.

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