Realtor fees — also known as commission — are part of almost every real estate transaction. However, buyers don’t typically pay them.

Instead, realtor fees are usually wrapped up in the seller’s closing costs. Rather than pocketing all the money from a home sale, a portion is distributed to the realtors involved in the transaction.

Even though buyers don't have to pay realtor fees, they’re still on the hook for some major out-of-pocket expenses — the down payment, and in some cases, earnest money. They’ll also usually have closing costs they have to cover.

💰 MORE: Learn how to get a home buyer rebate that saves you thousands!

What do realtor fees cover?

Usually, real estate brokers charge a percentage of the profit from a home sale.

This commission covers services rendered, such as:

• Helping the buyer locate a home by using the MLS
• Scheduling times with the seller for walkthroughs
• Processing all the paperwork

The total commission — 5-6% of the sale price, on average — is split between the buyer and seller’s agents. It is common for agents to split commission evenly, so each would get 2.5-3%.

Buyer’s agents are more motivated to show homes to their clients if they can earn commission from the deal. As a result, you can think of realtor fees as a marketing expense for the seller.

» MORE: What is realtor commission?

Reminder: Realtor fees are ALWAYS negotiable

In November 2023, several states sued the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty for allegedly misleading sellers into paying high realtor fees.

One lawsuit found these organizations liable for $1.8 billion in damages. Although the verdict made national headlines, there likely won't be an immediate impact on real estate commissions.

The standard 6% commission rate paid to realtors is completely negotiable. Sellers are free to negotiate a lower listing agent's commission rate, and can also offer to pay a lower buyer's agent fee if they wish to do so. 

At Clever, we've already pre-negotiated commission rates with our partner agents. You never pay more than 4.5% to sell your house, and you get to interview as many agents as you like until you find the perfect fit. 

Buyers need cash for a down payment and earnest money

Although buyers don’t usually pay realtor fees, purchasing a home still comes with significant upfront expenses.

The biggest cost is the down payment, which ranges from 3% up to 20% of the home's purchase price.

Some buyers also put down earnest money before closing — usually 1-5% of the price, though norms vary by location.

Note that earnest money isn’t an added expense — it’s more like a deposit and will be applied to the buyer’s costs if the deal goes through.

Buyers typically offer earnest money to assure the seller that they’re serious about purchasing the home.

» MORE: How to afford a million-dollar home

Buyers pay closing costs

Though buyers don’t usually pay commission, they are responsible for closing costs.

Your closing costs will depend on where you live, the type of loan you take out, and your interest rate.

A good rule of thumb is to save 2-5% of the purchase price for closing costs.

» MORE: The complete guide to home buying

Are closing costs negotiable?

It’s not uncommon to negotiate closing costs with the seller. In some cases, the seller will agree to pay some or all of the closing costs.

Closing costs are one of the most common seller concessions and can help buyers reduce the upfront cost of purchasing a home.

In other cases, the buyer might make a high-priced offer because the seller is willing to cover their closing costs.

Finally, it’s also possible to tack the closing costs onto your loan. For example, let’s say you purchase a home for $250,000 and pay 3% (or $7,500) in closing costs. You could ask to get approved for a $257,500 loan to cover your closing costs.

» MORE: What are seller concessions?

Related links

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

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

Home Buyer Rebates: Get Cash Back When You Buy!

You can get cash back when you buy a home if you receive a home buyer rebate. We'll show you where they're available and how to get one on your next purchase!

The 20 Best House Buying Websites in 2023

We've compiled a list of the best house buying websites so you can quickly find ALL the properties for sale in your area. Jumpstart your home hunting journey today!

Redfin vs Zillow vs Trulia: Honestly, Which Is Best?

Comparing Redfin vs Zillow vs Trulia? We'll explain who has the most accurate home value estimates, the best real estate agents, and more.

Real Estate Closing Costs: Find ALL the Fees You'll Pay

Wondering who pays what when it comes to closing costs? Whether you are selling your home or buying a new one, we break down exactly what closing costs to expect.

The post Do Buyers Pay Realtor Fees? appeared first on Semya-Moya.

What's the best alternative to RedfinNow?

If you're curious what a cash buyer would pay for your house, we recommend starting with a free service Clever Offers. 

With Clever, you can compare up to 10 competitive offers from pre-vetted cash buyers — ranging from trusted local investors to well-known iBuyers like Offerpad.

Simply tell Clever's team about your home, and they'll send you tailored cash offers from a variety of local, regional, and national home buyers in their network. 

You can also request a free home valuation report from a local realtor to compare your home's estimated value against each offer. 

Clever Offers is free to home sellers, and there’s no obligation to move forward. Compare offers to find the best deal, and either accept or walk away — no strings attached.

RedfinNow review summary

RedfinNow is poorly rated by customers. While it can help speed up the selling process, reviewers complain about high service fees, valuation errors, and homes selling for well below market value. The Better Business Bureau hasn't accredited RedfinNow and gives it only a C– rating.

What is RedfinNow?

RedfinNow is an iBuyer, a company that, similar to a cash buyer, buys homes for cash and resells them on the open market. If your home meets RedfinNow’s criteria, you can receive an offer within a few days without hiring an agent or showing your home.

RedfinNow offers a similar service to other iBuyers and cash buyers, but the company's 5–13% service fees are higher than Offerpad’s and Opendoor’s 5% fees. Redfin operates primarily as a discount brokerage, so it buys fewer homes than Offerpad or Opendoor, who are primarily iBuyers.

RedfinNow's service is available in 31 markets across the U.S. and the company offers flexible closing date options of 10–90 days. It even allows customers to rent the home back for a fee of $100 per day for 29–60 days after closing.

Before you accept any cash offer, you should compare offers from multiple cash buyers. This way, you can ensure you get the best price and terms for your situation. Comparing offers can be a time-consuming process, but it doesn't have to be.

A simple way to compare cash offers is with a free service like Clever Offers. A concierge will ask questions about your home, then collect multiple offers on your behalf from vetted, reputable buyers near you.

Instead of chasing down investors who aren't serious about buying, you can choose between a handful of the best possible offers.

Does Redfin buy homes?

Yes — Redfin’s iBuyer service, RedfinNow, makes near-instant cash offers on homes. The program makes three promises: certainty, convenience, and control.[1] To deliver on these promises, Redfin purchases qualified homes as-is — with no need to repair, market, or list your property.

RedfinNow is best suited for sellers who can’t afford to repair and list their homes — or those who simply don’t want to deal with the hassle.

In exchange for this convenience, consider some important trade-offs.

RedfinNow seeks to purchase homes that meet its criteria, then it makes necessary repairs and resells the homes for a higher price. As a result, RedfinNow’s final offer will likely be lower than what you might be able to attract on the open market.

If you accept Redfin’s offer, you won’t have a realtor to negotiate for you or protect your interests. The company’s website explicitly says, "RedfinNow agents and employees represent RedfinNow in their home purchases, and don't represent home sellers."[2] You’ll also have to be comfortable negotiating and advocating for yourself.

A cash offer can be a great option if you need to sell ASAP — but you'll almost always walk away with less money. In some markets where homes are selling quickly, holding out for just a few more weeks could net you thousands more.

Is RedfinNow legit?

Yes, RedfinNow is a legitimate iBuying service that makes a reliable cash offer on homes, buying them directly from sellers.

Now that Zillow Offers has abandoned the iBuying business, RedfinNow is one of the three largest iBuyers, along with Opendoor and Offerpad. RedfinNow operates in 31 markets compared to Opendoor’s 47 and Offerpad’s 25.

But RedfinNow doesn’t purchase as many houses as Offerpad or Opendoor. It focuses mostly on its primary business as a low commission real estate broker with a team of in-house agents who charge discounted rates.

» LEARN: What it's like to work with Redfin agents? Check out our full review of Redfin!

Is RedfinNow available near you?

Though RedfinNow’s service area was once more limited than other iBuyers, it has continued to expand. It is now available in 31 markets throughout the U.S., including:

• Atlanta
• Boston
• Chicago
• Nashville, TN
• Phoenix
• Washington, DC

Does your home qualify for RedfinNow?

Even if you live in RedfinNow's service area, your home must meet strict criteria to qualify for a cash offer.

In general, RedfinNow looks for single-family homes, townhomes, and condos built after 1930. Other criteria include:

RedfinNow also considers your home's value, with eligibility varying by market. For example, Seattle and Los Angeles have higher maximum property values than San Antonio, where eligibility is capped at $400,000. Across all markets, RedfinNow purchases homes valued between $150,000–1.5 million.

RedfinNow is explicit about homes it won’t purchase, which include:

• Homes in age-restricted communities
• Manufactured or mobile homes
• Lots larger than 1 acre
• Bank-owned homes or homes with an outstanding mortgage greater than their current market value
• Homes with unpermitted additions
• Homes with aluminum electrical wiring, polybutylene plumbing, or Masonite Woodruff roofs
• Homes with material structural issues, such as extensive termite damage

RedfinNow will typically buys houses that need some level of repair — but there are limits. If an inspection turns up significant issues, it’s unlikely you’ll meet RedfinNow’s criteria.

How RedfinNow works

1. Apply online. Start by providing information about your property through RedfinNow’s online questionnaire. Including photos can help you receive a more accurate initial offer, so focus on highlighting your home’s finishes (such as countertops) and any unique features.[3] There’s no need to clean up, beyond making sure your home's details are clearly visible.
2. Review RedfinNow’s cash offer. If your home is eligible, you’ll receive a Redfin cash offer within a few days. A RedfinNow representative will also call to discuss the service fee and answer any questions. Your initial cash offer is valid for five days [4] If you’d like to negotiate or you believe RedfinNow has overlooked something in its evaluation of the info you provided, be sure to request an on-site visit.
3. Accept your offer. To move forward, you’ll sign a contract (called a Letter of Intent, or LOI). Keep in mind that Redfin may adjust your offer if the mandatory inspection surfaces any issues.
4. Schedule a home inspection. RedfinNow requires a third-party home inspection, typically within 7–10 days of signing your contract. Depending on your property, RedfinNow may also require additional inspections (such as the roof).
5. Finalize the offer. If the inspection reveals any additional need for repairs, you’ll sign a Repair Addendum that may adjust your Redfin cash offer. These repairs target issues beyond normal wear and tear — for example, warped wood, termite damage, or badly damaged drywall or flooring.
6. Close the deal. You’ll choose a closing date (typically within 10–90 days, Mondays through Thursdays) and receive cash for your home. If your sale closes before you’re ready to move out, you can rent it back from RedfinNow for $100 per day for 29–60 days after closing.

If you decide you’re not ready to sell, RedfinNow can keep your information on file so you can "refresh" your offer later.[5] The company can re-analyze your property value based on current market conditions — but the changes aren’t usually dramatic.

Redfin bases its prices on what it believes is an accurate offer based on the market. The company’s streamlined process doesn’t leave room for much negotiation, but Redfin says it may consider an updated offer if the market has changed since the initial offer or if they missed something important during the inspection.

Before accepting a RedfinNow cash offer, compare it to what your house would sell for on the open market. To learn your home's true value, ask an experienced local realtor for a professional home valuation report, which most agents will provide for free. Weigh your agent's analysis of your home's fair market value against RedfinNow's cash offer price, so you can decide whether selling to Redfin is a good option or one that will leave thousands on the table.

» MORE: How to find the perfect real estate agent

RedfinNow fees

RedfinNow fees include a service fee and closing costs that add up to 6–16% of your home's sale price. For a $400,000 home, selling to Redfin could cost up to $64,000. That's a huge bite out of your profits! While the selling process and quick closing might seem more convenient, you won't necessarily save money with RedfinNow's high fees.

Here are how RedfinNow's fees and costs break down:

Compared to its competitors, RedfinNow’s 5–13% service fee is fairly pricey.[6] You’ll also have to pay standard closing costs which typically amount to 1–3% of your home’s sale price.

By contrast, Opendoor's service fee is just 5% of your home's sale price, plus closing fees.

How is the RedfinNow service fee calculated?

According to RedfinNow, the variable 5–13% service fee covers repair costs, plus a premium for the convenience and certainty of a cash offer. The exact rate you'll pay is based on:

• The costs of holding the home, including:
  • Financing
  • HOA dues
  • Property taxes
  • Maintenance
  • Utilities
  • Insurance
• The risks of selling the home, including:
  • Prices of homes recently sold in the neighborhood
  • Local home-buying trends

How much will RedfinNow pay for my home?

RedfinNow has a list of criteria it uses to calculate your offer, which includes factors like:

• Your home's age
• Your home’s overall condition, including landscaping
• The quality of materials, finishes, and surfaces
• The quality of fixtures and appliances
• Recent upgrades or improvements
• Anticipated repair and renovation costs

It's also worth noting that RedfinNow doesn't penalize sellers who have to back out, unlike some iBuyers (such as Offerpad) that charge a cancellation fee.

Still, expensive service fees can diminish the profit you'll earn from your sale. If you want to earn top dollar, Clever can help. Clever's Partner Agents provide full service while charging just $3,000 or 1.5% in listing fees, helping you save while still getting incredible service. Compared to RedfinNow, you could save up to $48,000 in selling costs for a $400,000 home!

RedfinNow reviews from customers

RedfinNow reviews are difficult to find because verified review sites like Trustpilot and Consumer Affairs only have reviews of Redfin's main service: discount real estate agents. However, we did find several reviews from home sellers in a Reddit thread.

Among the Redfin cash offer reviews we found, one seller reported that RedfinNow delivered exactly what it promised, the cost deducted for repairs was fair, and they were happy with the flexibility of the closing date and fees overall.

Reviews of Redfin's other services for home buyers and sellers on Trustpilot have an average of 2.5 out of 5 stars across 7 reviews, although they have nothing to do with selling your home directly to RedfinNow.

How does RedfinNow compare to alternatives?

RedfinNow vs. real estate agent

If you reject RedfinNow’s final cash offer, the company will try to steer you toward working with one of its agents — but we recommend also exploring non-Redfin agents to make sure you get the best possible match.

We found that while Redfin does offer savings, it doesn’t always deliver on customer service — particularly its in-house agents’ experience and responsiveness.

This isn't true of all low commission real estate companies, though. Ideally, these companies should deliver major savings without cutting corners on service.

For example, Clever can introduce you to top realtors from major brokerages like RE/MAX, Coldwell Banker, and Keller Williams. You'll get full-service AND pay a listing fee of just $3,000 or 1.5% of the home price, thanks to our pre-negotiated low rates. Plus, Clever can provide you with offers from companies like Opendoor, Offerpad, and RedfinNow to compare all of your options.

RedfinNow vs. Opendoor

Currently, the nation's largest and top-rated iBuyer is Opendoor.

Overall, Opendoor is the better iBuyer because:

• Opendoor’s fee is capped at 5%, instead of a variable fee like RedfinNow.
• Opendoor has more verified positive customer reviews.
• The company buys a lot more houses, meaning it’s more likely to buy your home.
• It offers a trade-in option that isn't available through RedfinNow.

Compared to other iBuyers, Opendoor's competitive service fees of just 5% and an average customer rating of 4.2/5 stars stand out. The company plans to expand to 100 markets across the nation.

RedfinNow doesn’t offer a trade-in program like Opendoor, but the company does offer flexible closing to help you remain in your home up to 90 days, compared to just 60 days with Opendoor.

Opendoor will also buy homes with lots up to two acres in some markets, while RedfinNow only makes offers on homes sitting on less than one acre of land.

Neither Opendoor or RedfinNow will pay listing agent commission, but Opendoor will pay the buyer’s agent a 1% bonus when the sale closes, as long as the agent representing the buyer has a license in good standing, and the seller has not requested or received an offer from Opendoor in the last 30 days.

One advantage of Redfin is its longer closing window — up to 90 days vs. just 60 with Opendoor.

»MORE: Read our full review of Opendoor

RedfinNow vs. Zillow Offers

Until it stopped buying homes in late 2021, Zillow Offers was one of the most popular iBuyer services, second only to Opendoor in terms of transaction volume.

Compared to RedfinNow, Zillow Offers was available in a similar number of locations, but it offered slightly more flexibility on closing dates and had a lower cap on its service fee.

However, it's important to note that Zillow's fees could have added up to significantly more than Redfin — up to 22%, including 6% for selling costs, 1–3% for closing costs, and potential realtor commissions.

Should you sell your home to RedfinNow?

RedfinNow's higher service fees and lack of verified customer reviews make it a more expensive and less certain option than other iBuyers.

Hot real estate markets like the ones RedfinNow operates in tend to have buyers who want to move fast AND who may be willing to pay the full value of your home — or possibly more.

If you're still deciding whether a RedfinNow cash offer is right for your home sale, Clever's licensed concierge team can help. Best of all, Clever's service is free with no obligation — so you can compare your options after speaking with top-rated real estate agents in your area.

If you ultimately decide to list with Clever, you'll save an average of $9,600 on listing fees!

FAQ

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The Best Low Commission Realtors (2023 Broker Rankings)

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Opendoor Reviews: Fees, Repair costs, and Common Complaints

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The Top 6 iBuyer Companies to Buy Your Home

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The post RedfinNow: Is Redfin Still Making Cash Offers? appeared first on Semya-Moya.

With many college back to campus this fall, they are navigating a second year of pandemic measures. For many, proof of vaccination and a negative COVID test are now as commonplace as shower caddies and mini fridges.[7]

Though college students face relatively low risk of serious illness and death, college towns experienced the ripple effects of their return to campus last year.[8] Now, with the Delta variant wreaking havoc across the nation, health officials warn another fall surge may be on the way.[9]

Yet even as 10% of colleges transition to fully online learning,[10] college towns still hold a nostalgic place in American culture. To rank America's 150 best college towns, we awarded points based on three criteria:

• Affordability: Rent for a one bedroom apartment (-4x), net cost (-4x), median student loan debt (-3x)
• Social life and culture: Walk score (4x), bike score (3x), entertainment options per 100,000 residents (2.5x), restaurants per 100,000 residents (2.5x), Power 5 (2x), student to population ratio (2x)
• College quality: Graduation rate (2x), retention rate (2.5x), median pay after ten years (2x), spending per student (1.5x), median number of undergraduates (1.5x), admission rate (-1x)

Read on to see our full rankings of the best college towns in America — plus, individual rankings for the best and worst college towns by affordability,
quality of life, and education.

America's 150 Best College Towns (2021 Ranking)

Most and Least Affordable College Towns

From paying for textbooks to juggling work-study programs, affordability is a major concern for most college students.

To assess the affordability of college towns, we focused on three factors:

• Median Student Loan Debt (-3x): Median student loan principal amount at the time of repayment (typically 6 months after full-time student status ends)
• Net Cost (-4x): Tuition minus average scholarships, aid, and grants
• Rent (-4x): Median monthly rent price for a one-bedroom apartment near campus

Overall, we discovered that where students live can play a major role in their day-to-day living — and how much student debt they accrue. For example, we found that:

• Rent is cheapest is Rolla, Mo. ($450 per month) — roughly 7x less expensive than in Manhattan, N.Y. ($3,516 per month).
• Gainesville, Fla., has the least expensive net cost ($6,302), while Lewisburg, Pa., is the priciest ($42,502).
• Students in Cedar City, Utah, graduate with the least debt ($7,623), while those in Castine, Maine, bear the heaviest burden ($26,545).

Overall, students who live in our 30 least affordable college towns pay $845 more in rent and $12,802 more in net costs on average — and graduate with roughly $5,100 more debt.

» MORE: Reality Check: Exploring Unrealistic Undergraduate Salary Expectations

Affordability in College Towns, by the Numbers

30 Most Affordable College Towns

30 Least Affordable College Towns

Best and Worst College Towns for Quality of Life

Outside of the classroom, a great college town offers plenty of opportunities for dining, socializing, and entertainment.

We measured college towns' quality of life by how easy it is to get around, how the student body compares to the local population, and how many sports, restaurants, and entertainment options there are:

• Walk Score (4x): Walkability near the university
• Bike Score (3x): Bikeability near the university
• Entertainment per 100,000 Residents (2.5x): Number of arts, entertainment, and recreation establishments per 100,000 residents
• Restaurants per 100,000 Residents (2.5x): Number of restaurants per 100,000 residents
• Power 5 (2x): Yes / No whether the college is in a Power 5 athletic conference (i.e. ACC, Big Ten, Big 12, Pac-12, SEC)
• Student to Population Ratio (2x): Ratio of students to general population

Overall, the college towns in our top 30 offer more accessible transportation options. Top-rated college towns have an average walk score of 81 and an average bike score of 78 — meaning most errands can be accomplished on foot and that biking is convenient.

By contrast, our bottom-rated college towns have an average walk score of just 56 and an average bike score of 60, so students who don't have a car or access to public transportation may struggle to get around.

When it comes to activities, our top 30 college towns offer plenty to do:

• Top-rated college towns have an average of 143 entertainment options per 100,000 residents, versus just 49 options in our bottom 30 college towns.
• The best college towns have an average of 256 restaurants per 100,000 residents, versus just 109 in our lowest-ranking towns.
• 20 out of our 30 best college towns have universities in a Power 5 athletic conference, compared to just three out of our bottom 30.

Finally, the best college towns have a roughly even mix of year-round residents and students (55%), compared to the relatively low ratio of students in our lowest-ranking towns (33%).

Quality of Life in College Towns, by the Numbers

30 College Towns With Best Quality of Life

30 College Towns With Worst Quality of Life

Best and Worst College Towns by School Quality

It's important for college towns to provide the right ambience — but at the end of the day, students are drawn to college towns where they'll get a great education.

We considered six factors to evaluate the average school quality in each college town:

• Retention Rate (2.5x): The proportion of full-time, first-time, degree/certificate-seeking undergraduates who were enrolled at the institution in the fall one year after enrollment
• Median Pay After Ten Years (2x): Students' median salary after ten years
• Graduation Rate (2x): Percent of students who graduate within 150% of the estimated time to complete the program
• Median Number of Undergrads (1.5x): Enrollment of undergraduate certificate/degree-seeking students
• Spending per Student (1.5x): University spending on instruction per full-time degree-seeking student
• Admission Rate (-1x): Proportion of applicants accepted for admission

In college towns that are home to multiple colleges and universities, we found an average across all schools.

Overall, large schools that invest in their students support better college towns. We found that:

• On average, our top 30 college towns have larger student bodies — averaging 25,642 students, compared to the average 8,639 students in our worst-ranked college towns.
• Students who live in our top 30 college towns are less likely to drop out or transfer (94.2% average retention rate in the best college towns versus 73.6% in the worst) and more likely to graduate on time (87.6% average graduation rate in the best college towns versus 51.3% in the worst).

On average, universities in our top 30 college towns invest $23,119 more in each student annually — and ten years later, graduates' median annual salaries are $28,257 higher.

However, it's also important to acknowledge that college towns in our bottom 30 are more accessible to more students, with an average admission rate of 80.9%, roughly double the average 42.1% admission rate in our top 30 college towns.

Education in College Towns, by the Numbers

30 Best College Towns by School Quality

30 Worst College Towns by School Quality

Methodology

We used data from the Department of Education to create our list of college towns. To qualify, a college town had to have a four-year, degree-granting institution where the majority of students are considered full-time and the majority of degrees awarded are Bachelor-level or higher.

Data for the ranking metrics were sourced from Zumper (rent costs), ApartmentList (rent costs), Walk Score (walkability and bikeability), the U.S. Census (population estimates, number of establishments), and the U.S. Department of Education (all other data points).

The data were categorized into three metrics: affordability, quality of the college(s), and quality of life in the college town.

Affordability measured living expenses and college affordability, with negatively weighted metrics to reflect less affordable towns.

• Median Student Loan Debt (-3x): The median student loan principal amount at the time of repayment (typically ~6 months after full-time student status ends). Missing data were replaced by the median value for schools fitting the same Carnegie Undergraduate Profile Designation.
• Rent (-4x): The median monthly cost of rent for a one-bedroom apartment near campus. If rent data were not available near the college, we used the median cost of a one-bedroom apartment in the town. In very rare cases where those data were not available, rent was considered the median cost of a one-bedroom apartment in the state. The rent cost was averaged across all colleges in the town.
• Net Cost (-4): The net cost of attendance was calculated as the average tuition and fees minus scholarships, aids, and grants across the student body, averaged across each college in the town. Missing data were replaced by the median value for schools fitting the same Carnegie Undergraduate Profile Designation.

Education quality considered the total number of students, exclusivity, retention and graduation rates, graduates' salaries, and resources allotted to instruction at the college.

• Retention Rate (2.5x): The proportion of full-time, first-time, degree/certificate-seeking undergraduates still enrolled in the fall one year after starting at the institution, averaged across all colleges in the town. Missing data were replaced by the median value for schools fitting the same Carnegie Undergraduate Profile Designation.
• Graduation Rate (2x): Percent of students who graduate within 150% of the estimated time to complete their program (e.g., 6 years for a typical 4-year degree program), averaged across all colleges in the town. Missing data were replaced by the median value for schools fitting the same Carnegie Undergraduate Profile Designation.
• Median Pay (2x): Median earnings of students who are working and not enrolled at the college ten years after first enrollment, averaged across all colleges in the town. Missing data were replaced by the median value across all colleges.
• Number of Undergraduate Students (1.5x): Enrollment of undergraduate certificate/degree-seeking students, totaled across all colleges in the town.
• Instructional Expenditures per Student (1.5x): University spending on instruction per full-time, degree-seeking student, averaged across all colleges in the town.
• Admission Rate (-1x): Proportion of applicants accepted for admission, averaged across all colleges in the town. Missing data were replaced by the median value for schools fitting the same Carnegie Undergraduate Profile Designation.

We also considered social and quality of life factors in college towns and surrounding areas.

• Walk score (4x): Walkability near the college, averaged across all colleges.
• Bike score (3x): Bikeability near the college, averaged across all colleges.
• Entertainment establishments (2.5x): Number of arts, entertainment, and recreation establishments per 100,000 residents. Missing data were replaced by the median number of establishments across all towns.
• Restaurants (2.5x): Number of restaurants per 100,000 residents. Missing data were replaced by the median number of establishments across all towns.
• Power 5 Designation (2x): Binary (yes / no) designating whether at least one college in the town is in one of the Power 5 Conferences (ACC, Big 12, Big Ten, Pac-12, SEC).
• Student-to-Population Ratio (2x): Ratio of students enrolled in all colleges in the town to the general population.

Each of the above metrics was calculated across all colleges for a single town (by averaging or summing across the colleges). The data were then standardized using z-scores and multiplied by their respective weight. The weighted score for each metric was summed to create a weighted score for each of the categories (affordability, quality of college, and quality of life) and each of those was summed to create a total score for the overall ranking.

About Clever

Since 2017, Semya-Moya has been on a mission to make selling or buying a home easier and more affordable for everyone. 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $70 million on realtor fees. Clever's research has been featured in The New York Times,
Business Insider, Inman, Housing Wire, and many more.

More Research From Clever

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Overall, Stanford, Calif., is the best college town in America — as well as the best for school quality. Williamsburg, Va., has the best quality of life, while Cedar City, Utah, is the most affordable college town. Read our full rankings.

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Overall, Greensboro, N.C., ranked last among America's top 150 college towns. Additionally, Manhattan, N.Y., is the least affordable college town; Terre Haute, Ind., ranks last for school quality, and Long Beach, Calif., came last for quality of life.
Read our full rankings.

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Table of Contents

1. Key Insights
2. Defining the Racial Wealth Gap
3. Significant Home Value Disparities Between Black and White Zip Codes
4. The 2008 Financial Crisis Exacerbated the Racial Wealth Gap
5. Neighborhood Revitalization Leads to Economic Growth
6. What You Can Do About The Racial Wealth Gap
7. Methodology

Across the U.S., many Americans share the same dreams of security, stability, and prosperity — for themselves and for their families.

Yet, not all Americans have equal opportunities to realize these goals.

The United States’ history of discrimination makes it extremely difficult for Black families to amass generational wealth at the rate white families can. In fact, the typical Black family has less than one-tenth the household wealth of a typical white family.

Americans' household wealth is concentrated in their retirement accounts and home equity. An August 2020 U.S. Census report found that retirement savings account for 32.8% of household wealth, while home equity accounts for 28.9%.[13]

The racial wealth gap impacts the housing market as well. Lenders perceive borrowers to carry more risk if they have less money, so Black families are more likely to be denied mortgages. White Americans are 1.7 times more likely to own a home than Black Americans (74.5% versus 44.1%, respectively).

Worst of all, our analysis found a negative correlation between home prices and the percentage of Black residents living in any given zip code. Houses in majority Black neighborhoods are valued at less than half as much as neighborhoods where less than 1% of the residents are Black. In some cities, houses in majority non-Black neighborhoods are valued over 600% more than Black neighborhoods.

To better understand the toll this takes on the American economy, we analyzed publicly available national housing data from Realtor.com, Zillow, and the U.S. Census.

We found that the racial wealth gap hurts not only Black people but also all Americans. According to economic models by McKinsey Institute, closing the racial wealth gap would to add $1 trillion to $1.5 trillion by 2028.[12]

Increasing Black homeownership and revitalizing predominantly Black communities has the potential to transform the lives of individuals — and the nation’s economy at large.

Clever is proud to partner with Dream Builders 4 Equity, a 501(c)3 organization that is creating new opportunities for home ownership, jobs for youth and minority contractors, and public dialogue about community needs in St. Louis.

Dream Builders 4 Equity’s innovative model provides a roadmap for how communities across the nation can take meaningful action to close the racial wealth gap. You can learn more about the nonprofit's mission in this video and donate to support Dream Builders 4 Equity on GoFundMe:

Key Insights

The Impact of the Racial Wealth Gap

• The typical Black family has approximately $12,780 in household wealth, compared to $139,300 for white families.[11]
• Our analysis found that homes in predominantly white zip codes command approximately $193 per square foot, compared to around $115 in predominantly Black zip codes.
• With each 1% increase in the Black proportion of the population in a particular zip code, home values decrease by approximately $2,581.
• The average median listing price is around $167,508 in predominantly Black metro areas — compared to $355,000 in neighborhoods where the percentage of Black residents is under 1%.
• Inequity worsened after the 2008 housing crisis: In 2007, the difference between Black-owned and white-owned average home prices was about $57,668 — a gap that nearly doubled to $94,489 by 2020.

Benefits of Closing the Racial Wealth Gap

• Equalizing homeownership rates alone would decrease the racial wealth gap by more than $40,000.
• Revitalizing Black neighborhoods can lead to a healthier economy: Every 10% increase in total housing market wealth translates to $147 billion in additional consumer spending.
• Building just 100 new low-income housing units could immediately create 80 jobs, plus an additional 72 jobs supported by ripple effects and new residents.

Defining the Racial Wealth Gap

Black Americans face systemic barriers — including disparities in pay, job opportunities, and interest rates — that curtail their ability to build wealth at the same rate as white Americans.

The typical Black family has approximately $12,780 in household wealth, compared to $139,300 for white families, per recent U.S. Census data.[11]

When Black applicants are approved for a mortgage, they tend to be charged higher interest rates than white borrowers. In 2015, researchers found that Black borrowers pay 29 basis points more than similar white borrowers[14] — a gap that is most pronounced for Black women, who are likely to be charged 57.36 basis points more than white women.

Collectively, these higher interest rates cost about $765 million annually[15] — money that could be redirected into paying down debt, saving, or spending in Black Americans’ local economies.

As a result, on average, Black homeowners also spend more than white homeowners — nearly one-quarter of their income (24%) — on housing costs. This varies based on location. For example, residents of majority Black zip codes in Canton-Massillon, Ohio, spend 38% of their income on housing on average, which is 107% more than residents of non-majority Black neighborhoods.

Equalizing these factors would also have an immediate, direct impact on Black Americans’ quality of life. For example, in the St. Louis metro area, Black homeowners spend about 23% of their paycheck on their home, compared to just 18% among white homeowners.

Homes in Predominantly Black Zip Codes Are Worth Half As Much as White Zip Codes

The racial wealth gap is demonstrably real and has cascading effects, particularly in the real estate market. We analyzed average home prices across 222 U.S. metros in 2020 and found strong correlation between race and property values.

On average, property values in predominantly Black zip codes are less than half those in predominantly white zip codes. In fact, with each 1% increase in the Black proportion of the population, home values decrease by approximately $2,581.

These discrepancies persist even when the analysis is controlled by home size. We found that homes in predominantly white zip codes command approximately $193 per square foot, compared to around $115 per square foot in predominantly Black zip codes.

If all other factors are equal, a 2,000-square-foot home would price at $386,080 in a predominantly white zip code — but only $229,900 in a predominantly Black one.

This limits the proceeds Black homeowners stand to gain from selling their homes. We found that in predominantly Black metro areas, the average median listing price is around $167,508 — compared to $355,000 in neighborhoods where the percentage of Black residents is under 1%.

In other words, white neighborhoods are valued nearly 60% more than Black neighborhoods.

We found that across the United States, 38 metropolitan areas have property value disparities of 100% or more — with several exceeding 500%.

The top 15 metropolitan areas with the greatest property value disparities between predominantly Black and non-Black zip codes are:

1. Flint, MI: 645%
2. Kansas City, MO-KS: 516%
3. Toledo, OH: 485%
4. Miami-Fort Lauderdale-West Palm Beach, FL: 478%
5. Bridgeport-Stamford-Norwalk, CT: 424%
6. Milwaukee-Waukesha-West Allis, WI: 382%
7. Buffalo-Cheektowaga-Niagara Falls, NY: 368%
8. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: 348%
9. Rochester, NY: 321%
10. Salisbury, MD-DE: 317%

Below, we've broken down a list of more than 60 metropolitan areas by the typical property values in predominantly Black and non-Black zip codes, ranked by their percent differences.

Ranking Metro Areas by Property Value Disparities

This pattern isn’t simply an artifact of averages — the median listing price for homes decreases as the percentage of the Black population within the zip code increases.

Homeownership should be a wealth-generating tool for all Americans. Instead of incentivizing homeowners to abandon or avoid predominantly Black zip codes, closing the racial wealth gap will require intentional investments in the neighborhoods that are currently most disadvantaged.

With time, neighborhood revitalization can raise property values for current residents and attract new businesses and job opportunities that can fuel further economic growth.

The 2008 Financial Crisis Exacerbated the Racial Wealth Gap

The 2008 financial crisis exacerbated the racial wealth gap, and more than a decade later, Black communities have still not recovered to the same degree as white ones.

In 2007, the difference between Black and white average home prices was about $57,668 — a gap that nearly doubled to $94,489 by 2020.

Black homeowners’ home values depreciated after the crash,[16] even when Black borrowers earned more than 120% of the area's median income. By contrast, white-owned home values appreciated over that same time period, even when the owner earned less than 80% of the area’s median income.

Sadly, many Black families who bought homes in 2004 are still underwater on their mortgages, while families living in non-Black majority neighborhoods have seen significant increases in their home’s equity.

Changes in Midwestern Home Values from 2004 to 2020

While this pattern holds true nationwide, it is especially pronounced in the Midwest, where home values are even more disparate than they were before the financial crisis — despite reaching parity in 2008.

In 2004, homes in Midwestern non-Black majority zip codes were worth $76,141 more than homes in majority Black zip codes — but by 2020, that gap had widened to $115,934.

Between 2004 and 2020, homes decreased by an average of $6,214 in Black majority neighborhoods, yet homes increased by an average of $33,579 in non-Black majority neighborhoods.

This holds true across large metropolitan areas across the U.S., where home values in predominantly Black zip codes have yet to recover to pre-crash levels. By contrast, those in predominantly white neighborhoods have exceeded pre-crash levels.

Additionally, the proportion of homeowners who are seriously underwater on their mortgages in a given zip code increases sharply with an increase in the percentage of Black residents.

Homeowners in predominantly Black communities are twice as likely[17] to be seriously underwater on their mortgage (20%) than those in white neighborhoods (9.9%).

As home prices soared throughout 2020, these patterns became more entrenched, exacerbating the wealth gap as predominantly white neighborhoods became increasingly valuable.[18]

Neighborhood Revitalization Doesn’t Just Impact Residents — It Strengthens the Local, Regional, and National Economies

The benefits of revitalizing Black neighborhoods and increasing Black homeownership go far beyond those individuals’ lives. A 2020 study found that every 10% increase in total housing market wealth translates to $147 billion in additional consumer spending.[19]

Equalizing homeownership rates alone would decrease the racial wealth gap by more than $40,000[20] — money Black families could reinvest in their communities and financial futures.

When banks appraise homes, they consider comparable homes nearby, which further suppresses home values in Black neighborhoods. Today, the racial composition of a neighborhood is a stronger predictor of home price appraisal now than it was in 1980.[21]

Increasing Black homeownership through affordable housing can bring new businesses to formerly depressed areas — lifting property values and increasing economic opportunities over time.

Nearly 67% of companies with more than 100 employees believe that a shortage of affordable homes has a negative impact on their ability to retain employees, according to the National Association of Home Builders.[22]

As businesses are drawn in by affordable housing, they directly create new jobs, which in turn increases disposable income and consumer spending.[23]

In fact, homeownership itself accounts for a large share of employment nationally.[24] Research by the National Association of Home Builders found that building just 100 new low-income housing units could immediately create 80 jobs, plus an additional 42 jobs supported by ripple effects. As residents move in, 30 more jobs could be created from increased consumer activity in the area.[22]

When homeownership increases in a community, it can lead to better financial outcomes for both specific neighborhoods and their entire surrounding regions. Financial institutions may increase capital for areas with more employment, unlocking new opportunities for consumer spending, new businesses, and local jobs.[19]

What You Can Do About The Racial Wealth Gap

Dream Builders 4 Equity is a 501(c)3 organization that provides youth employment, training, & mentorship.

The program uses four innovative steps that support long-term neighborhood revitalization and community-building:

• Acquire: Dream Builders 4 Equity acquires vacant nuisance property located in North City St. Louis.
• Plan: Students are given ownership in the property rehab through planning.
• Rebuild: Working alongside minority contractors, youth earn wages while rehabilitating the vacant property.
• Earn: The revenue from the sale of the property is invested back into the youth program and into college savings funds for each student.

The racial wealth gap is a national issue, and homeownership is a core part of generational wealth. As Dream Builders 4 Equity revitalizes Black neighborhoods within St. Louis, its model can be scaled and implemented across the nation.

You can learn more about Dream Builders 4 Equity and donate to support nonprofit on GoFundMe.

Methodology

Data from Realtor.com (median listing price, price per square foot) and Zillow.com (historical home value index) and the U.S. Census (housing costs, median income, race) were used in this study to analyze housing costs across the United States.

The Census data provided demographic information from the 2019 American Community Survey that was used to determine the percentage of the population in each zip code that is Black. Note that due to the way the Census reports data, we included the percentage of people who reported only Black as a race (i.e., they did not report more than one race in the survey).

Predominantly or Majority Black neighborhoods were defined as those wherein the percentage of Black residents to the overall population in the zip code was greater than 50%. Majority non-Black neighborhoods were those where the percentage of Black residents to the overall population in the zip code was less than 50%.

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The post America's Housing Inequality and the Racial Wealth Divide appeared first on Semya-Moya.

What is dual agency?

Dual agency is when one agent represents both the buyer and seller in a real estate deal.

This sets up a potential conflict of interest: an agent is supposed to negotiate on their client’s behalf, but one agent representing both sides of a sale can’t negotiate against themselves.

Many states have regulations designed to protect sellers and buyers from being taken advantage of by dual agents or at least to require agents to clearly disclose potential conflicts.

Even with regulations, it’s hard for dual agents to remain neutral and respect their clients’ confidentiality.

Let’s say that, as a seller, you confide in your listing agent that you’re willing to accept an offer $50k below asking price. Your agent then represents a prospective buyer who wants to make an offer on your home. Can you trust that the agent is going to push to get you the highest price? Or will they disclose your "bottom line" to help their new client get a great deal?

Agents benefit from dual agency: By representing two clients at once, a dual agent can earn more commission from a single transaction.

Dual agent sales are also likely to be faster because a single agent can manage the timeline with no back-and-forth.

What is designated agency vs. dual agency?

Designated agency is when the buyer and seller work with two different agents from the same brokerage.

Though designated agency is slightly different than dual agency, some risks may carry over, including:

• Agents from the same office may be more prone to sharing confidential information, intentionally or unintentionally
• Brokerages might offer agents financial incentives to keep deals in-house, rather than marketing the home widely to attract the best offer

However, designated agency does ensure each party has an agent advocating on their behalf. As long as each agent is free to work independently, designated agency can help minimize the conflict of interest that occurs when one agent attempts to represent both sides.

Is dual agency legal in my state?

As of November 2020, dual agency is illegal in eight states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.

Dual agency is legal in all other states and Washington, D.C., though regulations vary by state in three key areas:

• When during a transaction agents must disclose dual agency
• Whether your agent has to explain what dual agency is
• Whether buyers and sellers must agree to dual agency verbally or in writing

We’ve boiled down the need-to-know information about dual agency regulations in all 50 states and Washington, D.C.

Dual agency regulations by state

Pros and cons of dual agency

Dual agency doesn’t just benefit the agent — it can also benefit the buyer and seller.

Of course, dual agency carries some significant risks as well — particularly if you don’t fully understand them.

Before proceeding with a dual agency sale, be sure to weigh the potential benefits against the risks, vis-a-vis your specific situation.

If you do choose to move forward, we’ve outlined some helpful considerations and tips so you can proceed with confidence.

Pro: You may be able to save money

When only one agent is involved in a sale, the seller only has to pay that one agent instead of two. This lowers the overall cost of the transaction, typically resulting in 1-2% savings or more.

These savings give both parties more wiggle room in negotiations. After a deal closes, the seller may walk away with more profit, the buyer may have secured a lower price, or maybe a combination of the two!

Pro: Could make the sale faster and easier

In some cases, dual agency allows you to skip the listing or house hunting process altogether. This most commonly occurs when an agent:

• Finds a buyer who’s a great fit for one of their sellers
• Signs a seller whose listing is an exact match for an existing buyer’s criteria

Dual agency also results in more direct communication. Because both parties share one agent, you’ll never have to wait for a complicated back-and-forth mediated by multiple agents.

Con: You’ll have to be your own advocate and negotiator

Because the agent must serve both clients equally and fairly, they technically can’t try to sway either party while attempting to close a deal. That means it’s on you to handle all negotiations and advocate for your best interests.

Con: Agent may reveal confidential information to other party

Dual agents are technically supposed to be neutral parties — but they’re also highly motivated to get the deal done.

They’re often privy to information that can factor into negotiations, such as both parties’ bottom lines, the motivations for selling or buying, and so on.

The dual agent may use or share that information — intentionally or even accidentally — to close the deal, which could negatively affect one of the parties involved.

While this is technically illegal, it does happen often. If you think you’ve been defrauded or misled in a dual agency sale, you may have legal recourse.

Con: Less competition could keep you from getting the best price

Often, dual agency happens when an agent realizes they have an existing buyer who would be a good match for one of their listings. This can bring speed, convenience, and potential savings for the seller.

But it’s not always the best option. In a high-demand market, listing the property to the widest possible audience can spark competition and potentially drive up the sale price.

It really comes down to your priorities — speed and convenience versus price — so talk to your agent about your options. Your agent is technically obligated to look out for your best interests, and a good agent will be honest in helping you make the right call.

But keep in mind that agents stand to earn more through dual agency. If your agent is overly pushy or dismissive of your concerns, consider it a major red flag.

How does dual agency impact commissions?

Dual agency’s biggest perk is that it can help sellers save on commission.

Sellers typically pay a 5.5-6% commission that’s split between their agent and the buyer’s agent. A dual agent gets to keep the entire commission, also known as "double ending" a sale.

Many dual agents are willing to reduce their commission, so don’t be afraid to negotiate. They’ll still earn more from a dual agency sale than a traditional transaction in which the commission is split between two agents.

Here’s a simplified example that illustrates how the numbers could break down for a standard 6% commission:

• In a typical sale, each agent would receive around 3%
• In a dual agency sale, the agent could reduce the commission to 4%
• This would result in a 1% higher commission for the agent and 2% savings for the seller

In practice, the final commission rate could be more or less.

As you negotiate your agent’s commission rate, ask about variable rate commission. This means your agent would charge the full commission rate if the sale closes with another agent or a reduced rate if it is a dual agency sale.

Who should consider dual agency?

• Sellers: Sellers stand to gain the most benefits from dual agency. They are responsible for paying agent commissions, so any savings directly impact their bottom line. Plus, a higher sale price results in a higher commission fee, presenting a win-win for sellers and dual agents.
• Experienced sellers and buyers: People who are deeply familiar with the ins and outs of real estate sales can confidently navigate a transaction without an agent’s help. They know what red flags to watch out for and are well prepared to advocate for themselves.
• Real estate investors: If speed is imperative and you’re comfortable navigating a sale yourself, dual agency can save countless headaches and help you close more deals, faster.
• Prearranged deals: If family members or friends are comfortable with the terms of a prearranged deal, a dual agent can quickly finalize the transaction while helping to keep costs down. (Note: It may be less expensive to hire a transaction coordinator or real estate attorney, so be sure to price out all your options.)

Who should avoid dual agency?

• Inexperienced sellers and buyers: If you’re unsure of how to negotiate and advocate for yourself, dual agency means you won’t have an experienced agent guiding you through the transaction.
• Buyers in low-competition markets: Independent buyers who are shopping in a buyer’s market have little to gain from dual agency. Since the seller pays the buyer’s commission, there’s virtually no reason to skip the opportunity to benefit from an agent’s expertise.

» MORE: Find top agents near you.

Negotiating in a dual agency sale

In a dual agency sale, your agent is technically an impartial mediator, so you’ll be in the driver’s seat when it comes to negotiating the terms of the deal.

Remember, everything in real estate is negotiable—so don’t be afraid to push for the things you want!

To set yourself up for success at the negotiating table, be careful about what information you disclose to a dual agent.

For example, avoid sharing your bottom line, motivation for selling or buying, or required timeline. This type of information increases the risk of confidentiality breaches that could jeopardize your negotiating power.

Tips for buyers

In a dual agency deal, many buyers will attempt to make a lower offer or negotiate a lower sale price, knowing the seller is paying less in realtor commission fees.

Dual agents won’t be able to advise you on how hard to push on price, so do your own research. Ask your agent for comps (recent sales prices for similar homes in your area) that justify the listing price. Then, confirm their findings by looking at similar properties in the area, focusing on the price per square foot and interior finishes

Tips for sellers

Because buyers understand that sellers often have some wiggle room in a dual agency deal, they may ask for repairs or concessions while negotiating.

It’s crucial to compare the buyer’s estimate to your own quotes from trusted contractors. Sellers who aren’t familiar with repair costs can easily be taken for a ride.

Dual agency exit strategies

If you’re looking to avoid or get out of a dual agency situation, your options will depend on how far into the process you’ve gotten.

Want to avoid dual agency?

Most states require agents to obtain consent from both parties before proceeding with a dual agency sale. If you don’t feel comfortable with dual agency, you don’t have to agree to it.

The most common dual agency scenario is when an agent receives an inquiry about one of their listings from an unrepresented buyer. In this case, avoiding the dual agency situation is relatively straightforward:

• Sellers: Tell your agent you want the buyer to secure separate representation before proceeding.
• Buyers: Tell the listing agent you're going to find your own agent.

Backing out of a dual agency agreement

If you’ve agreed to dual agency sale but have a change of heart, it is possible to change course.

Before attempting any drastic changes, we recommend talking to your agent. Explain what’s making you uncomfortable or unhappy, and see if they can adjust. For example, your agent might be able to bring another agent from their brokerage into the deal.

If you’ve already signed a contract and decide that it’s just not working out, it is possible to change agents. The next steps will be different for buyers and sellers.

Advice for buyers

If you’re buying, changing agents breaks down into two distinct situations. The deciding factor is whether the buyer has signed a broker’s agreement:

• If you signed a broker’s agreement, read your contract to see how much flexibility you have. Are there any limits on working with another broker? Are there any limits on canceling?
• If you’re working without a broker’s agreement, you’re free to leave at any time — though it may feel awkward to broach the topic. Follow general communication best practices by being upfront, clear, and firm about your decision.

Advice for sellers

If you’re selling, there may be more barriers to changing agents. Your contract will spell out any limitations or processes you’re legally obligated to follow.

You may have to:

• Prove that your agent isn’t doing their job adequately
• Compensate your original agent, if they’ve put in a significant amount of work
• Pay your agent’s commission, if you signed an exclusive right-to-sell agreement
• Observe an agreed-upon timeline

Keep in mind that many contracts expire after a period of two to six months. If you’re close to your contract’s end date, you may want to just wait it out.

» MORE: Try Clever's free agent-matching service.

What to do if you feel misled or defrauded by dual agency

If you feel defrauded or misled by a dual agency sale, you may have legal recourse.

Most state regulations prohibit dual agency situations in which the agent:

• Fails to follow state regulations
• Doesn’t take the proper steps to get your consent
• Misleads you about the home’s value
• Doesn’t disclose known problems with a property
• Discloses confidential information to the other party

These types of lawsuits aren’t uncommon.

For example, in 2019, celebrity realtor Ryan Serhant faced a $1M lawsuit when a past client alleged that he failed to disclose that he represented both the buyer and seller. Similarly, a still-ongoing class action lawsuit alleges that New York brokerage Houlihan Lawrence pushed dual agency deals that resulted in distorted pricing.

If your experience appears to violate local regulations, we recommend getting in touch with a qualified real estate attorney to discuss your options.

Taking legal action can be expensive, time intensive, and stressful — but considering that your home is likely your most valuable asset, pursuing justice may be well worth the investment.

The post Everything you need to know about dual agency appeared first on Semya-Moya.

» COMPARE: We Buy Ugly Houses | HomeVestors | MarketPro Homebuyers | We Buy Houses | I Buy Houses | Sundae Real Estate

For more than a decade, Expert Home Offers has provided a platform for home sellers to connect with prospective cash buyers in their area. The process is simple: You submit information about your home, and a real estate agent or investor may reach out to you.

However, Expert Home Offers is also very different from cash buyer companies like We Buy Ugly Houses or We Buy Houses, which have more robust offerings and customer service for home sellers.

While these competitors provide a fast, end-to-end experience that guarantees a cash offer, Expert Home Offers makes money by selling home sellers’ information without any certainty that it will lead to a completed transaction.

For sellers who need a fast cash offer, Expert Home Offers is a relatively low-risk and commitment-free option — but it’s far from the best way to get a fast, firm cash offer for your home.

What is Expert Home Offers?

Expert Home Offers is a website that allows you to submit information about your property in exchange for a possible introduction to a real estate agent or investor in your area.

If you want to connect with cash buyers in your area, but don’t know where to begin, it may be worth submitting your information. Should a prospective cash buyer become interested in your property, they can pay Expert Home Offers to connect with you.

But before you choose to work with Expert Home Offers, there are a few things you should know.

In a nutshell, Expert Home Offers only allows one prospective cash buyer to purchase your information — which means it can yield one contact at most. Unlike other cash buyer companies, it doesn’t guarantee a certain price, timeline, or sale.

Expert Home Offers vs. Cash Buyer Companies

Expert Home Offers primarily serves real estate professionals

According to its Terms of Use,[25] "ExpertHomeOffers.com is a lead generation service that connects prospective clients with local professionals."

Translation: Expert Home Offers identifies real estate agents and investors as its primary customers — not home sellers.

This is a very different model from other cash buyer companies, which provide an end-to-end experience and can directly pay cash for your home in as little as seven days.

If you're primarily interested in connecting with real estate investors, you can always connect with prospective cash buyers by posting on free public forums such as Craigslist or Bigger Pockets.

Neither of these sites profit from networking between home sellers and investors, and you can potentially drive competing offers that result in a higher sale price.

» LEARN: How much will a real estate investor pay for my home?

Investors and agents aren’t pre-vetted

Unlike other cash buyer companies, Expert Home Offers does not vet its investors or require any proof of funds.

Your experience with Expert Home Offers will depend entirely upon who ends up reaching out to you — and you might hear from someone who isn’t qualified to purchase your home at all.

By contrast, We Buy Houses — one of Expert Home Offers' competitors— requires all investors to have proven real estate experience, pay a licensing fee, and sign an ethics agreement.

Expert Home Offers can't promise a fast timeline

Home sellers are often interested in an all-cash offer because it can speed up the timeline for the transaction.

Typical cash buyer companies and iBuyers address this need by purchasing homes outright. This allows them to guarantee a cash offer and closing within a specific time frame.

By contrast, Expert Home Offers posts home sellers' submissions to its database of properties. It's entirely up to individual investors and agents to purchase your contact information, then move forward on their personal timelines.

The longer your information sits in Expert Home Offers's database, the cheaper it becomes: from $75 to $34.95 after three days, and then down to $9.95 after 15 days or more. This might incentivize investors to wait a few days before responding.

» READ: How to Sell Your House Fast

At most, you’ll meet one real estate agent or investor

Expert Home Offers will only sell your information to one real estate agent or investor in your area. As a result, you won’t receive multiple offers or the ability to comparison shop through Expert Home Offers — two things that can help drive your sale price up.

How Expert Home Offers works

• Submit your information. To get started, you can enter your name, contact information, and address through Expert Home Offers’ webform.
• Wait. After you submit your information, real estate agents and investors can peruse a database of possible deals that are organized by zip code. (Your contact information and address is hidden until someone pays Expert Home Offers to access the full record.)
• Hear back. If someone purchases your contact information, they will reach out to you. From there, your experience will depend on how serious the potential buyer is, whether they have the funds to purchase your home, and how quickly they might be able to move forward.

Is Expert Home Offers available in your location?

As of May 2021, Expert Home Offers is available across all 50 states and Washington D.C.

Is Expert Home Offers a scam?

Based on our research, Expert Home Offers is a legitimate business that can connect home sellers with prospective cash buyers.

However, Expert Home Offers’ business model doesn't provide the same services as a typical cash buyer company — a distinction that’s not immediately apparent from its website.

For example, the company’s webform attracts submissions with advertising copy that reads "Sell your home fast!" and "Free, No Obligation Home Selling Offer!"

Seeing this, you might reasonably conclude that Expert Home Offers will provide the cash offer, or that you can expect to hear back within a specific timeframe.

Yet the webform primarily exists to collect home sellers’ information, which the company then sells for a profit.

There's actually no guarantee you'll receive a qualified cash offer or hear back fast.

Expert Home Offers reviews

Expert Home Offers considers real estate agents and investors as its primary customers — and its online reviews reflect that fact.

Currently, Expert Home Offers has no online reviews from home sellers or buyers. This lack of social proof makes it difficult to assess the quality of its investor network.

By contrast, MarketPro has more than 250 online reviews from home sellers, and We Buy Ugly Houses has specific Facebook and Google review profiles for its many local offices.

Who should consider selling to a cash buyer?

In general, home sellers resort to cash buyer companies if they need to sell fast — particularly if they are facing sudden life changes or financial distress.

A cash sale may be worth considering if you are experiencing:

However, the convenience of a fast all-cash sale comes at a cost. It’s crucial to recognize that cash buyers almost never offer fair market value for your home.

How does Expert Home Offers compare to alternatives?

Expert Home Offers vs. real estate agent

While you can find a real estate agent through Expert Home Offers, there are better ways to connect with agents.

Expert Home Offers’s agent matching is based on who purchases your contact information — not necessarily who’s the most qualified or the best fit for your situation.

By contrast, Clever’s Concierge team connects home sellers with top rated agents in their area. We can match you to an experienced agent who can give you an unbiased assessment of your home’s value, plus guidance on how to sell your property based on your goals.

Contact Expert Home Offers

Recommended Reading

If you're wondering how much it costs to build a house in Texas, the truth is: It varies. In general, it’s more convenient and less expensive to purchase a pre-existing house. In 2020, the median price of a pre-existing house in Texas soared to $273,300 but still remained lower than the average $296,652 required to build a house.

However, cost isn’t always the top consideration for buyers who want to build a house. After all, new construction presents a rare opportunity to customize every inch of your home.

Whether you're looking for a plot of land or a home, you'll need a great agent on your side. Clever can connect you with top-rated real estate agents who are experts in local markets across Texas. Best of all, eligible buyers receive cash back at closing!

💰 Find Texas agents with experience in land purchases AND get cash back!

Buying land in Texas

Before building a house in Texas, you’ll have to purchase a plot of land. Costs vary widely, depending on the location, type, and amount of land you plan to buy.

The average single-family home sits on a half-acre lot, so we recommend searching for land in that range.

You can find finished lots in cities, existing subdivisions, or other areas that are already zoned for single-family homes.

It’s more convenient to opt for a finished lot — rather than raw land — because these generally come with access to utility hookups.

Finally, keep in mind that your dream lot may require some preparation before construction begins.

If you need to demolish a pre-existing house, expect to spend around $6,750 if the house doesn’t have a basement, or around $12,643 if it does.

Similarly, if you’re planning to buy rural land for a future ranch or homestead, make sure you’re prepared to navigate some extra steps. For example, you might have to confirm the acreage of unsurveyed land, clear timber, or cope with creeks and other topographical features.

Obtaining building permits

Before building your new house, you’ll need to obtain all the right permits. On average, HomeAdvisor estimates that people spend $1,200-2,000 on permits when building a home — but costs can vary widely depending on local regulations.

In most cases, you will apply for a permit once you’ve obtained a blueprint or drawing from an architect. As long as you start construction within six months, permits are typically valid for however long it takes to finish building your home.

The permit process might seem daunting, but it’s an essential step you can’t afford to skip. Homeowners who fail to obtain permits may face steep fines, a lack of insurance coverage, or even demolition if a home doesn’t meet local standards.

Penalties aside, there’s an even more crucial reason to obtain permits: your safety.

Municipalities require permits to ensure that homes are up to code. In Texas, these codes prevent people from building houses that are poorly suited for the state’s hurricanes, flooding, or other possible natural disasters.

Budgeting for construction costs

The average cost per square foot to build a house in Texas ranges between $91 and $134 per square foot while building a new home — an average of around $114 per square foot.

This estimate tracks with national norms. Across the U.S., building an average single-family home costs $296,652, or around $114 per square foot.

These averages can help you create a budget, but your final costs will vary depending on:

• The cost of labor in your local area
• The building materials you choose
• The size of your house

As you budget for construction in 2021 and beyond, you may also encounter the ongoing ripple effects of the pandemic. For example, lumber prices reached record highs, spiking 67% in 2021 — up 340% from pre-pandemic levels. Nationally, lumber costs alone have added $35,872 to the price of a typical newly constructed single-family home.

If you're worried about possible price fluctuations, an experienced local real estate agent can discuss your options. Clever is a free service that can introduce you to top-rated agents who can help you decide whether building or buying a home is your best option in the current market.

Navigating finishing costs

Among all construction costs, the largest portion of your budget will go toward finishing costs, which cover everything that defines the look and feel of your home.

You should expect to devote around 25% of your total construction budget to interior finishes such as:

• Flooring
• Cabinets
• Lighting
• Appliances
• Bathroom and kitchen fixtures
• Doors

You’ll also get to choose many exterior finishes, such as roofing, shutters, and more.

Why finishing costs vary

More than almost any other expense, the quality of the finishes you choose will have a major impact on the total cost of building your home.

For example, basic finishes may be sufficient for a future rental property — and luxury touches can add up fast.

Finally, don’t forget to factor in the cost of labor — which also varies locally. Homeowners in Texas’ major cities should expect to pay a bit more than those in rural parts of the state.

Is it better to build or buy a house in Texas?

If you’re unsatisfied with your options for pre-existing houses in Texas — and are comfortable with the potential costs, delays, and complications of construction — building a house may be a good option for you.

Further, buyers who opt to build a house may discover new possibilities in the state’s challenging, competitive housing market. According to a December 2020 report by Texas A&M University’s Real Estate Center, Texas’ home inventory recently reached historic lows. Houses flew off the market almost as quickly as they were listed, forcing buyers to compete for a slim selection of options.

At the same time, interest in new construction is booming.

For example, for six consecutive months in 2020, Texas saw applications for single-family construction permits steadily rise. In October 2020 alone, the state’s five biggest cities received 11,818 permit applications.

To help you choose between buying vs. building in Texas, we recommend speaking with an experienced real estate agent who's familiar with Texas real estate trends. Clever can connect you with agents from top brokerages such as Keller Williams, RE/MAX, and Coldwell Banker.

Whether you end up purchasing a plot of land or a home that's move-in ready, eligible buyers can also qualify for cash back at closing!

Related links

Buying Land to Build a House: Your Step-by-Step Guide

Buying land to build a house can be a complicated process. Here is a step-by-step guide to finding and financing your vacant land purchase.

Buying a House in Texas in 8 Easy Steps

From saving for a down payment to reaching the closing table, learn how to navigate the key steps to buying a house in Texas.

How to Build a House While Selling Yours: 5 Things to Know

Here’s how to build a home while selling your house without breaking the bank.

FAQs about building a house in Texas

Is it cheaper to build or buy a house in Texas?

In general, it’s more convenient and less expensive to purchase a pre-existing house. In 2020, the median price of a pre-existing house in Texas soared to $273,300 but still remained lower than the $296,652 required to build a house on average. Learn more with our in-depth guide to buying land and building a house.

How much does it cost to build a house in Texas?

According to the National Association of Home Builders, the average cost to build a single-family home is $296,652, or around $114 per square foot. Learn more — including how you can save thousands on realtor fees!

The post How Much Does It Cost to Build a House in Texas? appeared first on Semya-Moya.

Whether you’re purchasing your first home or maintaining your current one, the expenses involved can quickly become overwhelming.

If you worry that safe, affordable housing is outside your financial reach, it’s worth investigating the many programs designed to help people access much-needed housing assistance.

In general, funding is prioritized for:

• First-time home buyers
• Low- and very-low-income home buyers or homeowners
• The elderly
• Veterans or active duty service members with disabilities
• Native American home buyers or homeowners
• Homeowners or renters impacted by natural disasters or other emergencies

If you think you might qualify for housing assistance, read on to learn more about options that may apply to your situation.

Programs for Building or Renovating a Home

HUD’s 203(k) Rehab Mortgage Insurance

Though fixer-uppers are often available at affordable sale prices, renovation costs can quickly add up. HUD’s 203(k) Rehab Mortgage Insurance program is designed to help home buyers purchase and renovate a property — without the high interest rates and short timelines other loans demand.

The proposed repairs must cost at least $5,000, but can extend to total demolition and reconstruction (as long as the original foundation remains in place).

If your property qualifies, you can use this program to address a number of costly rehab projects, including structural alterations, improved energy efficiency, installing a well or septic system, and more.

VA’s Disability Housing Grants

If you’re a veteran or service member with certain service-connected disabilities, you may qualify for a U.S. Department of Veterans Affairs disability housing grant. These grants can help you buy a home, or renovate your current home to meet your needs.

Depending on your specific disability, you may qualify for one of two grants.

The Specially Adapted Housing (SAH) grant allows veterans and service members to buy, build, or renovate their homes. In 2021, the maximum grant amount is $100,896, or $40,637 if you’re living in temporary housing.

The Special Home Adaptation (SHA) grant also provides funding for purchasing, building, or renovating a home. In 2021, the maximum grant amount is $20,215, or $7,256 if you’re living in temporary housing.

If you receive either of these grants, you don’t have to use the funding all at once — it can be spread over up to six separate transactions over your lifetime.

DOE’s Weatherization Assistance Program

Each year, the Department of Energy (DOE) Weatherization Assistance Program (WAP) helps low-income households reduce their annual energy costs by $283 or more on average.

Though financial assistance varies by property, the average home receives weatherization measures worth $4,695.

Note that the program takes a "whole-house" approach to weatherization, often improving older homes’ overall safety. Along with energy-efficient improvements, participants might also receive help remediating mold, fixing roofing, or addressing other health and safety concerns.

Programs for Buying a Home

Fannie Mae’s HomePath Program

The HomePath ReadyBuyer program provides up to 3% closing cost assistance to first-time home buyers. To qualify, you’ll need to complete an interactive online course (available in Spanish and English) that will guide you through the home buying process.

The only catch is that this offer only applies to HomePath properties — foreclosed homes that are owned by Fannie Mae.

The National Homebuyers Fund DPA Program

The National Homebuyers Fund, Inc. DPA program offers assistance with a down payment and/or closing costs — two upfront expenses that many buyers struggle to afford. Home buyers can receive up to 5% of the mortgage loan amount, in the form or a gift or a 0% interest second mortgage that is forgiven after three years.

You don’t need to be a first-time home buyer to qualify, and you may also be able to apply the NHF DPA program to refinancing your home. It’s available nationwide and compatible with a variety of common home loans.

However, you will have to stay in your home for at least three years — so only apply if you’re not planning to move any time soon. You’ll also have to work with one of NHF’s participating lenders.

HUD’s Revitalization Areas

Located across the U.S., Revitalization Areas are locations designated by the Department of Housing and Urban Development (HUD) under the National Housing Act.

Single-family homes within these Revitalization Areas may be eligible for two programs that offer discounted sales:

• Asset Control Area (ACA) program
• Good Neighbor Next Door (GNND) sales program

Under the ACA program, the Federal Housing Administration is able to offer steeply discounted pricing on certain foreclosed properties. These homes fall into three tiers:

• Properties appraised at $25,000 can be purchased for $100
• Properties appraised at more than $25,000 but less than $50,000 are discounted by $24,900
• All other properties are sold at a 50% discount of their appraised value

Under the GNND program, law enforcement officers, teachers, fire fighters, and EMTs are eligible to purchase homes at a 50% discount of the listing price (provided that the property is in a Revitalization Area).

USDA’s Rural Development Loans

The U.S. Department of Agriculture’s Section 502 Guaranteed Loan Program helps low- to moderate-income households buy, build, or renovate a home.

The program allows qualified applicants to purchase a home with no money down by providing a 90% loan note guarantee to approved lenders. To qualify, participants must purchase or own a home in an eligible rural area.

HUD’s Section 184 Indian Home Loan Guarantee Program

HUD’s Section 184 Indian Home Loan Guarantee Program provides financial assistance for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Today, eligible locations have expanded beyond tribal trust land.

The program allows Native borrowers to secure a home loan with a low down payment of 1.25% on loans under $50,000, or 2.25% on loans over $50,000. (Maximum loan limits vary by location.) This funding can be applied to buying, building, refinancing, or renovating your home.

All loans are 100% guaranteed by the Office of Loan Guarantee within HUD's Office of Native American Programs.

If you’re a Native American veteran, or a veteran married to a Native American, you may also qualify for the VA’s Native American Direct Loan (NADL) program.

Programs for Repairing a Home

USDA’s Section 504 Home Repair Program

The USDA’s Section 504 Home Repair program provides up to a $20,000 loan to very-low-income homeowners (defined as 50% below the area’s median income). Homeowners can use this funding to repair, improve, or modernize their homes.

Qualifying applicants who are 62 or older and cannot repay a loan may be eligible for a grant of $7,500. These funds can be used to resolve health and safety hazards.

If a qualifying applicant can repay a portion of their loan, they may be eligible for a combination of loans and grants totaling up to $27,500.

FEMA Housing Assistance

If your home is damaged by a natural disaster or other emergency, you may be eligible for housing assistance from the Federal Emergency Management Agency (FEMA).

Qualified applicants can receive funding for temporary housing, home repairs, or even home replacement. You may also qualify for help paying for a wide range of other disaster-related expenses, ranging from childcare to medical bills.

Keep in mind that this financial support only applies to needs that are not covered by insurance. Applicants will also need to verify their identity and ownership or occupancy.

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The post Best Grants for Building, Buying, or Repairing Your Home appeared first on Semya-Moya.

How to sell a house fast for cash

If you need to sell your house fast for cash, we recommend taking three steps to ensure you get a fair price for your home while selling on your timeline.

First, identify all the iBuyers and cash buyer companies in your area, then submit your information to each home buying company to see how much cash they'll offer.

Both iBuyers and cash buyer companies typically provide free, no-obligation cash offers and give homeowners a grace period to think things over before committing.

Next, arrange listing presentations with several real estate agents in your area to discuss your home's fair market value and how quickly you can sell your house on the open market. A real estate agent can also help you decide whether the offers from cash buyers or iBuyers are fair.

Once you have all of your options in front of you, choose the one that offers the best combination of speed and profit for your specific home selling goals.

The easiest way to get the process started is to use Clever Offers to request free, no obligation offers from local cash buyers. Clever will match you with a great local realtor, who will bring you quotes from iBuyers and other house buying companies in your area. You'll also get a free home valuation, so you can see what your house is worth on the open market and be sure you're getting a fair price.

Selling to an iBuyer

» COMPARE IBUYER COMPANIES: Opendoor | Zillow Offers | Offerpad | RedfinNow | Knock | Orchard

If your home is in good condition and you live within an eligible service area, iBuyers can provide a way to sell your house fast for cash.

Though iBuyers vary in their specific approaches, they all follow the same general model. Homeowners complete an online application and quickly receive a preliminary cash offer.

Most iBuyer companies then complete a home inspection and deduct the estimated costs of repairs from your final proceeds.

Compared to other real estate investors, iBuyers typically offer close to fair market value for the homes they purchase. iBuyers also allow homeowners to set their own closing dates, which can be especially helpful if you're trying to coordinate a move or the purchase of a new home.

However, iBuyers are only available in approximately 30-40 cities across the country — and most of them have strict buying criteria.

If your home is in poor condition, RedfinNow has the most lenient criteria but is only available in limited markets. Most sellers won't qualify for a RedfinNow cash offer.

Working with a We Buy Houses company

» COMPARE CASH BUYER COMPANIES: We Buy Houses | We Buy Ugly Houses| HomeVestors

You've probably seen telephone pole fliers claiming "We Buy Houses for Cash!" Although these offers may seem too good to be true, we found that some nationwide brands — such as We Buy Ugly Houses— have proven business models that fulfill the promise of a fast, all-cash sale.

If you need to sell your house fast for cash, cash buyer companies can close in as little as 7-14 days and provide greater certainty that the deal won't fall through. You won't have to make any repairs or worry about closing costs, either.

But this convenience comes at a steep cost. It's rare to receive fair market value for your home and more common to receive as little as 50% of what your home is worth.

That's a lot of money to leave on the table, especially if your home is in an attractive location or a competitive real estate market.

Worse, it can be tricky for homeowners to vet which real estate investors are legitimate — and which house buying companies are bad actors that prey on your financial troubles or desperation to sell fast.

In general, we recommend sticking with a nationwide brand rather than a local or boutique cash buyer company. If you're not sure where to start, Clever recently published a collection of in-depth, balanced reviews that will tell you the good, the bad, and the ugly about cash buyer companies.

Hiring a real estate agent

Most homeowners who want to sell fast for cash assume that a real estate agent won't be able to offer a solution. After all, listing on the open market can be a lengthy selling process. Traditional home buyers are willing to pay a higher purchase price than house flippers, but they're typically unprepared to make cash offers.

But there are some exceptions to these rules.

Speed varies by market. If you live in a seller's market, you might be able to find a buyer much more quickly than the national average. For example, as of August 2022, homes spend an average of 35 days on the market — but in Seattle, homes typically sell just seven days after listing.

When connecting with potential real estate agents, make sure they know that selling fast is a priority for you. They can walk you through your local market conditions and offer a rough estimate of how much time it might take to find a buyer for a home like yours.

Some agents know cash buyers. If you're certain that you want a cash sale, a real estate agent may still be able to help. Many realtors have personal connections with local house flippers and real estate investors who buy houses for cash— and if your home is in poor condition, selling your home as is can signal a good deal.

FAQs about selling a house to a cash buyer

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The post What's the Best Way to Sell My House Fast for Cash? appeared first on Semya-Moya.

What is an open listing agreement?

An open listing is a non-exclusive contract between a seller and a real estate agent (or several agents). It stipulates that the seller will pay an agent’s commission if the agent introduces them to a buyer who ultimately closes on the home.

Unlike other listing agreements, an open listing lets the seller retain the right to pursue a for sale by owner (FSBO) transaction. If the seller finds the buyer who closes, they won’t have to pay commission at all.

In practice, a FSBO seller may sign multiple open listing agreements with different agents as a low-risk way to attract more prospective buyers for their home.

Open listings help FSBO sellers market their homes

One of the biggest challenges for FSBO sellers is connecting with qualified buyers — and open listings can help them do just that.

When you sign an open listing agreement with an agent, they’ll actively look for buyers whose criteria match your home in the hope that their connection will lead to a commission.

Local agents offer a pretty powerful advantage, considering nearly 90% of home buyers work with real estate agents.[26] They’re ideally positioned to help sellers find a motivated buyer and close fast.

In fact, nearly one-third of buyers (29%) find their home directly from their agent — compared to just 2% of buyers discover their home directly from the seller.

Key benefits of open listings for FSBO sellers

Open listings are non-exclusive

You can sign open listing agreements with multiple agents, which increases your home’s visibility at zero upfront cost or additional time commitment.

You only pay if and when an agent’s buyer closes on the home

Unlike some other FSBO marketing tactics — namely flat-fee MLS services, which charge a flat fee upfront for a limited set of services — agents will proactively pitch your home to motivated buyers at no out-of-pocket cost to you.

You retain the right to FSBO

To reiterate, you only pay an agent’s commission if they bring the buyer who ultimately closes on the home. If you find your own buyer, you can avoid paying realtor commissions entirely.

What you won’t get from an open listing agreement

When you sign an open listing agreement, the agent is not agreeing to represent you in the transaction.

Open listings simply stipulate payment terms if the agent finds your eventual buyer.

In other words, the agent will be solely supporting their client and looking out for their interests in the sale. You will still have to manage your side of the transaction and look out for your own interests, as is the case with any FSBO sale.

» READ: How to Sell Your House For Sale By Owner

Example: Open listing agreement

As with any legally binding contract, you should carefully review the terms of an open listing agreement before signing.

The terms of your open listing agreement will define your relationship with each agent:

These terms will cover all the basics, including:

• Details about your property (i.e. address, listing price, etc.)
• When the contract begins and ends
• The agent’s commission rate
• When you’ll be obligated to pay commission

The contract should also note that your relationship with any given agent is non-exclusive:

This means you’re free to enter as many open listing agreements as you please, or find a buyer yourself, without facing legal repercussions.

Common clauses in open listing agreements

Cancellation

Establishes a procedure for terminating the contract.

Criteria for screening offers

Outlines specific requirements for screening buyers, including things like a minimum offer price or deposit, closing timeline, or contingencies.

Dual agency

If your state allows dual or designated agency, it might be mentioned in your contract; if you plan to sell FSBO, just make sure you’re not agreeing to dual agency, in which the buyer’s agent would represent you. (Learn more.)

Fair housing compliance

Under federal law, neither the seller nor the agent can discriminate against potential buyers based on their race, color, creed, religion, sex, national origin, handicap, or familial status.

Listing price

The price you’re asking for, based on your home’s condition and similar properties in the area.

Non-exclusivity

Allows you to sign open listing agreements with other agents, or find your own buyer.

Payment terms

The commission structure and rate/fee to be paid if the agent introduces you to the buyer who ultimately purchases your home; note that this could be a percentage of the sale price, a flat fee, or an hourly or retainer rate.

Permission to market on your behalf

Allows the agent to market and show your home, possibly including a lockbox or yard sign.

Seller’s disclosures

Required disclosures vary by location, but typically include material defects and any potential financial issues that would impact the sale, such as bankruptcy, back taxes, or loan defaults.

Timeline

A fill-in-the-blank section that defines when your contract begins and ends; most listing agreements last three to six months.

Backing out of an open listing

When you sign an open listing agreement with an agent, you’re only obligated to pay commission if you accept an offer from their buyer — so you probably won’t need to terminate the contract.

The most important thing to remember is that open listing agreements are legally binding. That means you can’t try to back out while secretly working with a buyer behind their agent’s back.

Doing so would open you up to a world of legal trouble, including the possibility of a lawsuit.

Still, your open listing agreement should include a clause about cancellation:

Typically, cancelling your open listing agreement will need to happen in writing.

If you decide not to sell FSBO and opt to proceed with an agent, signing an exclusive contract may render your open listing agreements null and void. Be sure to check the fine print!

Alternatives for FSBO sellers

Limited service: Work with a flat-fee MLS company

Even if you sign an open listing agreement (or several), it’s still a good idea to list your home on the MLS — regional databases that agents rely on to scout homes for their clients.

Popular home search websites such as Zillow and Realtor.com also draw on the MLS, so it’s one of the best ways to market your property.

Only licensed real estate agents can list homes on the MLS, so FSBO sellers will need to enlist someone to do this on their behalf. Flat-fee MLS companies offer an affordable solution.

These companies charge a set fee — usually $100-500 — which is far less expensive than hiring a full service real estate agent.

» READ: What You Need to Know About Flat-Fee MLS Listings

Full service: Agent-matching service or discount real estate broker

Attempting a FSBO sale is no easy feat — but if you decide you need a full service agent, you may not have to pay full price.

Discount real estate brokers

Discount brokers like Redfin offer low listing fees that could help you save up to 20-30% on total commissions.

However, because most of these companies use an in-house agent team and handle a high volume of customers to offset their low rates, there are some significant service-level risks to consider.

» LEARN: What is a discount real estate broker?

Agent-matching services

Another way to save is finding your agent through an agent-matching service that negotiates low rates on your behalf, like Semya-Moya.

The best agent-matching services:

• Are 100% free to use
• Only work with top-rated, full-service agents
• Negotiate built-in savings
• Offer ongoing Concierge support throughout your entire sale

Importantly, not all agent-matching services offer built-in savings for home sellers. When evaluating services, make sure you understand exactly what you’re getting — and what you’re not.

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The post Selling FSBO? Here’s How an Open Listing Agreement Can Help appeared first on Semya-Moya.