Tag: Buyer Negotiation

  • Check for Foundation Issues Before Buying a Home

    When you’re looking to buy a house, a new kitchen, fresh paint, and modern finishes are easy to notice. But foundation problems are much easier to miss, and they can be far more expensive to ignore.

    The foundation affects the entire structure of a home. Cracks, settlement, drainage problems or movement can mean expensive repairs after closing. Having the foundation inspected before you buy can help you catch red flags early.

    Foundation Problems Can Spread Over Time

    Foundation issues don’t always stay put. Movement in the foundation can show up in walls, floors, ceilings, doors, windows, and even plumbing systems. A small crack may not seem like a big deal at first. But if you see it with uneven floors, sticking doors, gaps around windows, or cracked drywall, it could be a sign of a more serious structural problem.

    These warning signs don’t necessarily mean the home has serious foundation damage. Still, they shouldn’t be overlooked. As the problem gets worse, the damage can spread to other parts of the home.

    Catching Problems Early Can Lower Repair Costs

    Some buyers assume foundation concerns can wait until after closing. That can be a costly mistake. Minor settlement, drainage problems, or small cracks are often easier to address when they are found early.

    More serious repairs might involve installing piers, stabilizing slabs, improving drainage, or doing crawlspace work, all of which can quickly add up, especially if the damage has already impacted floors, walls, or plumbing. Finding these problems before buying gives you a clearer picture of what the home may really cost.

    Inspections Give Buyers More Negotiating Power

    A foundation inspection gives buyers facts to work with instead of guesswork. If the report shows movement, damage, drainage problems, you can use that to negotiate.

    The seller may agree to do repairs, lower the purchase price or give a credit at closing. You also may opt to have a structural engineer or foundation specialist come in for a more in-depth look. Sometimes, the inspection confirms that the problem is manageable. Other times, it helps you steer clear of a home that has more risk than you’re willing to take on.

    Don’t Overlook Peace of Mind

    When you buy a home with unresolved foundation issues, it can leave you worrying about every new crack, sloped floor, or sticking door. A foundation inspection doesn’t guarantee a perfect home, but it does give you more clarity. It gives you an idea of the structure’s condition, whether repairs might be needed, and whether the purchase is still within your budget.

    That kind of clarity can save you money and stress long after closing. Checking a home’s foundation before buying is one of the smartest ways to avoid expensive surprises. In Dallas and across North Texas, where expansive clay soils and moisture changes can put added stress on foundations, structural concerns are especially important to catch early.

    Before you commit to a home, take the time to understand what is happening beneath it. A solid foundation protects more than the house. It can help protect your budget.

    If you have foundation problems or you want a professional opinion before buying a home, visit pinnaclefoundationrepair.com for professional guidance and support.

  • Realtor Commission Rates: What Sellers and Buyers Need to Know in Columbus, Ohio

    Real Estate commission shifted significantly following the 2024 NAR settlement. Understanding Realtor commission changes is crucial for any homeowner navigating today’s market. Commission rates will vary by state and local area. Real estate commissions are completely negotiable.

    Commission rates are no longer standardized and can vary by state, city, and even individual agents. All commissions are negotiable, but the way they’re handled has changed.

    • Listing Agent Commission: When you hire a listing agent to market and manage your sale, you’ll agree on a percentage of the sale price, typically between 1% and 4%.
    • Buyer’s Agent Compensation: This is where the biggest change occurred.
      • Buyer agent fees are no longer automatically displayed in MLS listings.
      • Buyers must sign a written agreement with their agent before touring homes.
      • Buyers are responsible for negotiating and paying their own agent fees.
      • Sellers may still choose to offer buyer-agent compensation, but it must be handled outside the MLS listing.

    How Commissions Work in Practice Today

    Let’s say you sell a $400,000 home:

    • Listing Agent Fees: At 2.5%–3%, you’ll owe $10,000–$12,000.
    • Buyer Agent Fees: Sellers are not required to pay, but many still do to make the property more appealing. This compensation might be:
      • Offered as a concession during negotiations,
      • Built into the sale price if requested by the buyer, or
      • Paid directly by the buyer.

    In total, while combined commissions often remain 4%–6%, the negotiation process is different. Buyers now take more responsibility for their agent’s pay, which can influence how offers are structured.

    Typical Costs to List with a Realtor

    • National Commission Average: Historically between 3% and 6% of the final sale price. On a $400,000 home, that’s $12,000–$24,000.
    • Flat-Fee and Discount Brokerages: Some sellers choose flat-fee or discount models. These can lower upfront costs, though services are often more limited compared to full-service brokerages.
    • Administrative or Transaction Fees: Many brokerages add extra charges ranging from $200 to $600.

    Negotiating When Listing Your Home

    Everything about commission and service is negotiable:

    • Commission Rates: Many agents are open to adjusting their fees, especially in competitive markets or on higher-value homes.
    • Service Packages: Agents may provide options ranging from basic MLS listings to full-service marketing campaigns, including staging, open houses, and online advertising.
    • Buyer-Agent Compensation: Sellers can decide whether to contribute to the buyer’s agent fee. While some fear this may limit showings, NAR guidance notes that agents are not supposed to steer clients based on commission offered.

    Seller Costs Beyond Commission

    Aside from commissions, you’ll also need to budget for closing costs and other expenses:

    • Title, Escrow, and Transfer Taxes: Depending on your state, these can total several thousand dollars.
    • HOA Transfer Fees and Local Charges: If your property is in an HOA, there may be transfer or document preparation fees. Local governments may also charge recording fees.
    • Average Seller Closing Costs: Typically 1%–4% of the sale price, not including commission.

    Other Costs Sellers Often Overlook

    • Repairs and Upgrades: Roof repairs, HVAC service, or plumbing work may be expected before listing. These expenses can add up quickly.
    • Carrying Costs While on Market: You’ll still be responsible for mortgage payments, property taxes, insurance, and utilities until the home closes. Depending on how long it takes, this could mean several thousand dollars per month.

    How to Save on Realtor Costs

    • Interview Multiple Agents: Speak with at least three agents. Compare not only their commission rates but also their marketing strategies and track records.
    • Consider FSBO or Direct Sale: Selling your home yourself or directly to a buyer can reduce or eliminate commissions, but it often requires more effort and market knowledge.
    • Using a “Sell My House Fast” Alternative: If you need to avoid repairs, staging, and lengthy market time, a direct cash offer can be an option. Google Sell my house fast to explore this approach.

    Weighing Realtor Commissions Against Value

    The cost to list your house with a Realtor is more than just the commission. Closing costs, repairs, carrying costs, and other expenses all will reduce your net proceeds. Understanding each potential cost, negotiating these cost where possible, and comparing selling options, you can make a decision that aligns with your goals.

    Author:

    Marc Van Steyn is a licensed REMAX Realtor with 21 years of experience helping buyers and sellers in Columbus, Ohio. He also runs a YouTube channel sharing tips and market insights for those relocating to the Central Ohio.