How to Minimize or Avoid Brokerage When Buying a Home

Cost number one is the brokerage you pay to the real estate agent or brokerage firm. Brokerage is the fee charged by the intermediary or broker between the buyer and the seller. This fee alone can significantly increase the cost of buying your home and cause you to exceed your budget to buy a home, as most brokers charge a brokerage fee of 1% to 3% of the total sales price. And when it comes to buying a home, even 1% can mean a lot of money.

Here are some ways to minimize or totally avoid brokerage fees when buying a home:

• Although it is often said that real estate or brokerage fees are paid only by the seller and not the buyer, in practice real estate agents demand the intermediation of both the seller and the buyer. But, if you search hard enough, you may be able to find a broker who will accept brokerage only from the seller and not the buyer.

• With the help of the internet it is not difficult for you to find homes to buy instead of going to a real estate agent or a brokerage house. There are many homes for sale listing sites where you can contact the seller directly without going through an agent. This means you get a no brokerage or no brokerage house and totally save all the money you had to pay as brokerage fees.

• There are many sites online that offer no brokerage or no brokerage houses, where you can find houses. With such existing sites, a brokerage-free home is just a Google search from you.

• Take advantage of your network of friends, relatives, colleagues, and acquaintances to find a home to buy instead of going to a broker. You will surely have someone in your network who is looking to sell a home or at least knows someone who can put you in touch with someone who wants to do so. You’ll save a ton of money in brokerage fees if you get help from your network finding a home for you.

• Last but not least, if you find that there is no other option than to go to a broker to find a home to buy, use the old-fashioned technique of negotiating with the broker. Negotiate a good deal and be persistent until you find a broker who agrees to your terms. This way, even though you won’t get a zero brokerage house or no brokerage house, you will at least have a better deal and pay less in brokerage fees.