Selling a house is not only a big emotional step, it’s also a major financial move. For most sellers, the key question is: what’s my net at closing? And that’s where real estate commissions take center stage.
Let’s look at what expenses the seller can expect, as well as the cash home selling process if the goal is to quickly complete the transaction.
What Commissions Does the Average Seller Pay?
In the U.S., selling a home almost always involves paying commissions to real estate agents. On average, that’s 5%–6% of the sale price, split between the listing agent and the buyer’s agent.
For example, if your home sells for $400,000, commissions could run up to $24,000. That amount comes straight out of your proceeds.
In addition to realtor commissions, the seller has other expenses:
- Closing costs. These are fees for the services of a title company, paperwork, and title search. Closing costs typically run around 2–4% of the sale price for Texas sellers, depending on the property and title company.
- Preparing the house for sale. To attract buyers, you need to invest in repairs, cosmetic updates, or staging the home for showings.
- Taxes and fees. Depending on the state, there may be additional costs such as transfer taxes (not in Texas), title insurance, prorated property taxes, and recording fees.
As a result, many owners realize that a traditional sale through a realtor eats up a significant portion of the profit.
Why Sellers Look for Faster Options
Selling a house with an agent is a process that takes from several weeks to several months. You need to put the property on the market, wait for offers, go through the negotiations and inspections. And if the buyer uses a mortgage, the transaction can drag on even longer.
However, there are situations when the owner needs to sell the house urgently:
- Threat of bankruptcy or foreclosure risk.
- Relocation for work.
- An inherited home that’s hard to maintain.
- The need to get cash quickly.
In such cases, people begin to look for alternative ways, where the commission is either minimal or absent altogether.
Selling for Cash
There are specialized companies and private investors who buy real estate for cash. They are often called we buy houses cash companies. The main advantage of this option is speed. Cash buyers can sometimes close in as little as 7–14 days, depending on the property and title paperwork.
Such companies buy houses in any condition, which saves the owner from the costs of repairs and preparation for showing. In addition, in most cases, they often cover most closing costs.
The trade-off: the price will be lower than the market value, because the investor includes a margin for resale or rental. However, for those who value time more than maximum profit, this can make sense.
Selling Without an Agent (FSBO)
FSBO (For Sale By Owner) means that the seller sells the house themselves, deals with showings and negotiations. This saves on agent fees, but you need to be prepared for legal and organizational complications. In addition, most buyers work with agents, so sellers often still offer a 2.5–3% commission to the buyer’s agent, though this is negotiable.
Selling for Cash Procedure
There is a typical steps in such companies:
- Initial offer. The company or investor evaluates the property — either from photographs and databases, or with an on-site visit.
- Agreement on the price. The seller receives an offer, which can be accepted or rejected.
- Signing the contract. If the terms are acceptable, a purchase and sale agreement is concluded.
- Closing the deal. The title company checks the documents, and after that, the seller receives the money.
The entire process takes from several days to a couple of weeks, which distinguishes it from the traditional way.
Choosing Between Profit and Speed
If your goal is to get the maximum amount from the sale, then a traditional sale through a realtor remains the best route. However, you need to consider the commissions and time costs.
If liquidity and speed are more important to you, it is better to consider selling directly to an investor or through specialised companies. Here, the final amount may be lower, but you will avoid hidden costs, repairs and long waits.
Conclusion
Commissions for selling a home in Texas can amount to tens of thousands of dollars, and sellers are not always willing to eat those costs. That is why alternative options are becoming increasingly popular in the market: selling directly to an investor, iBuyer platforms, and cash transactions. Each of these methods has its pros and cons, and the choice depends on your priorities: the maximum price or the speed of receiving money.