Buying or selling a home is a huge decision, and there are many different factors that can influence your decision one way or another.

There are, of course, a number of costs and fees associated with the home buying process, including the agent’s commission. Traditionally, that commission is in the 5% or 6% range, and you’d be pretty hard pressed to get most traditional agents to ever come down on that number (for reasons we’ll get into in a moment).

At Southport Oak Island Realty Group, though, we have dropped that number and work on a 4% commission, which can make a huge difference in your decision to buy or sell or a home.

What Happens with an Agent Commission?

It’s important to remember that the entire commission (whatever the percentage) isn’t going straight into the agent’s pockets. Instead, the commission has to cover a variety of expenses that are a part of listing a home for sale. This could include the advertising, home photos, and anything else that is necessary to show off the house.

The commission is also split between listing and buying agents and used to cover the different realtor association dues at national, state, and local levels.

This is why most agents are unwilling to budge at all on the traditional 5 or 6% commission. There’s a lot of costs involved every time they sell a home. If they tried to drop those rates, they wouldn’t end up with much of an income at all.

There are just too many places where that money is going.

So, if an agent is going to work on a 4% commission, it’s going to require some planning and dedication to ensure we can still deliver all the services you need when you are buying or selling your home.

Can You Get the Same Services at 4%?

Yes.

A Southport Oak Island Realty Group, Inc., we offer full real estate listing services (in fact, we can even offer a little more) even at a 4% commission.

We still provide a range of services that include professional interior and exterior photos (including drone photos), inclusion in the multiple listing service (MLS), and other personalized advice and services.

We understand if, right around now, you’re thinking that there’s obviously a catch somewhere. After all, a percent or two adds up to a lot of money on a commission. Surely, that needs to be made up somewhere else… maybe in the form of additional fees mixed into the process. Surely.

Well, no. Surely not.

We don’t charge any additional fees on any of our listings. All services are included.

How Do We Manage That?

Our solution to the commission question was simple. We’re not a franchise.

We have to deal with the same overhead and realtor fees and dues that other firms have to deal with, but since we’re not associated with a nation-wide franchise, we don’t have to split our commission with these larger companies.

We take care of our own marketing and advertising, we don’t have to contribute to the national advertising funds, brand funds, and other overhead costs. Why would we want to? We specialize in North Carolina and the homes and properties in the Southport and Oak Island areas. There’s no reason to stretch the budget into the national real estate market.

This means that the real estate agent commission doesn’t have to be spread out between so many people/organizations. Instead, we can use it how it was intended: to help you get started selling your home.

How Much Does a Percent or Two Really Save You?

So, what does a 4% commission really mean for sellers? What is the monetary difference between a 4% and a 5% commission when you buy or sell a home?

Let’s look at some simple round numbers to get an idea.

Suppose your house is going to be listed for $500,000. A 5% commission on that is $25,000. 4% of the total, however, is $20,000.

What could you do with that extra $5K?

You can probably put it to much better use than it would get going to a national franchise somewhere.

That is money that you save and can use to make a few updates or buy some new furniture or bring in an interior decorator or hundreds of other possible things. When you’re buying or selling your home in NC, a single percent can make a big difference.

Get Started Today

Get started selling your home for a 4% commission with Southport Oak Island Realty Group, Inc. Our agents specialize in this unique and beautiful area, and we can deliver all the services you expect while saving you money.

Like everything else, the pandemic impacted the housing market unexpectedly. Increased demand has created a unique real estate opportunity. New buyers are entering the market, and existing homeowners debate whether they should take advantage of unprecedentedly high sale prices. As demand has gone up and prices have followed this trend, you may be left wondering if you should sell your home.

Interesting Developments

As demand for homes and selling prices increase, interest rates have dropped to historical lows. A good interest rate can save thousands of dollars over the course of a mortgage and drastically impact your overall budget and financial standing. Locking in a low rate on a new property may be plenty of reason to sell your home and start over with a new mortgage loan.

Interest rates are expected to climb but should still stay relatively low compared to pre-pandemic rates. Although nothing is certain, so you may want to secure a low interest rate now before things change.

Seller’s Market

In areas with very high demand, selling your home can prove to be a wise move financially. North Carolina is a hot housing market right now, so selling your home in NC can be very profitable. Lots of buyers are competing for limited houses, and bidding wars are known to break out. When buyers drive up prices, sellers can benefit.

The opportunity to sell your home may be too good of an opportunity to pass up. Request a free valuation to learn the actual value of your property. Your home may be worth more than you think, and understanding the current value will allow you to make an informed decision.

Live Your Life

People typically move in response to changes in their lives, like their family outgrew their current home; or they took a job in a new area. These are very valid reasons to sell your home, and there will always be people who fall into these categories. The rise in work from home culture has added a new type of homebuyer to the market.

The ability to work from home means employees can work from anywhere. Without a job tying some buyers to a specific city, the urge to move back home or take an extended adventure are possible. Selling your home in NC can enable you to do what makes sense for your life while also allowing buyers an opportunity to own a piece of the Tar Heel State.

Find Your Dream Home

If you sell your home, you’ll need a new place to live. Selling your home for top dollar now means you can reinvest any profit into a new home. Even if you still carry a mortgage, selling your home for more money now may offset whatever dent you would put into your mortgage over the next few years. Request a free valuation to find out what your home is worth. Knowing the value may help put your dream home within reach.

Take Advantage of the Opportunity

Selling your home can be scary because it is a significant endeavor. You have a lot of fond memories of times spent in your home, and you likely also have a lot of your finances tied up with your home. Moving on can be intimidating, but it can also be a unique opportunity. Taking advantage of historically low interest rates and a seller’s market, along with drastic changes to how people live and work, can make this the right time to sell. Reach out to request a free valuation of your home so you can find out what you stand to gain by selling your home.

Deciding to sell your home is a significant step. The housing market is constantly changing, and there are always unique challenges. Deciding to sell your home also offers several opportunities, like the ability to find your dream home or turn a profit. Being prepared can make a huge difference when it comes to showing buyers your property’s full potential and closing the deal. Here are tips to quickly sell your home.

Clean Up

Despite your best efforts, it is very easy for your home to become messy or cluttered. Mail can pile up, you may feel obligated to hold onto gifts you received even if you do not like or use them, and finding the time to fix broken things is not always easy. Give your space a good hard look and get rid of anything you do not need or use. Cleaning up can make spaces look larger so prospective buyers will see the home for sale and not your stuff.

You can make your move a lot easier by donating or recycling items that don’t serve a purpose anymore. Putting things you do not immediately need into storage is a good compromise that will clear out your home while also getting a jump start on packing.

Nothing Personal

Part of what makes a house a home are the personal items and photos that adorn the walls and shelves. These items may hold special memories for you, but prospective buyers have no connection, so these items are just clutter. Remove personal items so buyers can view the home as a clean slate. Instead of being distracted by your family photos and personal effects, they will notice the crown molding in the living room or the tile work on the kitchen backsplash.

Organize Closets

Storage can be a dealbreaker, and buyers will likely take a peek into the closets to scope out the available space. Organizing your closets will better showcase the space while serving as another opportunity to donate and recycle items that no longer bring your joy. A jam-packed closet overflowing with clothes will send the message that the closets are too small and may prevent buyers from making an offer. Thin out your wardrobe, make sure everything is on a hanger, and match up your shoes, so the closet looks tidy. An organized closet will make the space look larger and help you sell your home.

A high level of organization will show buyers that you are neat and tidy. It stands to reason that someone who organizes their spice drawer or linen closet would also keep up with routine home maintenance, so being organized can pay off.

Make Minor Repairs

Wear and tear are expected, and making minor repairs can make a difference when it is time to sell your home. Scuffed paint or a missing drawer pull can be distracting. Touching up paint and replacing or tightening hardware will enable buyers to focus on the home for sale, not the small issues. If enough issues pile up, a buyer may lose interest, so keep buyers interested by eliminating distractions.

Selling Your Home in NC

Listing your home for sale is exciting, but it can also be nerve-wracking. Taking steps to clean up the space and highlight the space so prospective buyers can envision themselves living there can make a difference. Preparing your home to sell can be a big undertaking, but it can pay off and increase the odds of offers coming in.

Due Diligence in North Carolina Real Estate:

North Carolina Real Estate Law allows for what is called “Due Diligence” during the process of purchasing a home in this state. Not all states are the same, so it is important to understand this concept and process when considering the purchase of property in coastal North Carolina. Below we will go through and help you understand the process of due diligence in North Carolina which will help you navigate this concept if you are planning on moving to the state or have never heard of due diligence and want to know more.

What is Due Diligence in North Carolina?

Due Diligence is the buyer’s opportunity to thoroughly investigate the property after you are under contract to purchase it. At your initial walk through and viewing of your next potential home, you look at many things such as the number of bedrooms, bathrooms, design, location, style, size and proximity to desired locations. While you may take a quick look at things like the roof, and age of heat and A/C unit, how do you know the actual condition and functionality of the items?

It can be hard sometimes to gauge things like this from a simple walk through, so it is important to take a closer look. Having an in-depth inspection into things like the garbage disposal, smoke detectors, dishwasher, built in oven or stove, hot water heater, fans, lights, garage door openers, sinks, drains, showers, outdoor lights, receptacles, gutters, windows, light switches, the homes foundation, crawl space, potential pest infestations, septic functionality, etc. is VERY IMPORTANT!

While the initial view of a home may seem perfect, it could potentially have many flaws that make or break your decision to purchase that home.

This is what the Due Diligence period in North Carolina real estate is all about! Giving the buyer the opportunity and time to access and thoroughly inspect the property prior to moving forward with the purchase. This allows for the buyer to request any repairs to be completed by the seller, helping the buyer decide to move forward or to back out of the real estate purchase.

Is Due Diligence required?

No, Due Diligence in the state of North Carolina is not required, but highly recommended. You are not legally required to do any due diligence prior to purchasing a home in the state. You may simply agree on a purchase price with the seller and then proceed to completing the transaction.

If I do not pay a Due Diligence Fee, can I still do a home inspection?

This answer is tricky! You DO have the option to forgo a real estate due diligence fee in North Carolina. This would not necessarily forfeit your ability to perform any due diligence activities such as inspections or other prepurchase activities that the due diligence period allows for. Conducting Due Diligence without paying a fee is a possibility, that is of course if the sellers agree to allow you to. If the seller does not agree to allow you to conduct a free period of further investigations (due diligence), you would automatically move past this at the execution of the North Carolina residential real estate purchase agreement. This would then obligate you to purchase the home or forfeit the earnest money you have put forward as agreed to in the North Carolina residential offer to purchase contract.

Can I get the Due Diligence fee refunded to me?

The due diligence fee paid to the seller of a home is considered to be non-refundable. This is a payment made to the seller of a home, which allows the buyer time and the opportunity to conduct further inspections of the home. It is also considered a good faith payment to the seller to take their home off the market and mark it as pending. However, do not be concerned about paying this fee, it is taken off of the total purchase price of the home at closing, if you choose to purchase the home.

What is the average amount of due diligence paid to home sellers?

While real estate due diligence fees vary in different parts of the state of North Carolina, here locally in the Southport and Oak Island area, we see the average amount to be around 1% to 2% of the total purchase price. Although there are no standards or requirements in place, we have seen these numbers stay pretty constant. On the flip side, we have seen both lower as well as substantially higher due diligence fees in local real estate transactions. These fees should be carefully considered as they are commonly referred to as non-refundable. It is also important to remember, sellers DO take this number VERY seriously when considering offers, as it speaks to the seriousness of the potential buyer.

How long is the due diligence period?

The duration of the due diligence period in North Carolina can vary, be negotiated, and agreed upon by both the home buyer and seller. Time can range from just a few days to three months or even longer. Many situations and circumstances may dictate the extent to what time frame will be acceptable and/or required to complete a satisfactory due diligence for a prospective buyer. Within reason, the average due diligence period we see in Brunswick County North Carolina residential real estate is between fourteen to thirty days.

What if Due Diligence inspections reveal issues with the home?

During the course of a buyer’s due diligence period, inspections are completed and may reveal issues, some may be minor, while others may be significant. This is what the North Carolina due diligence process is for! If or when issues are found the buyers have a choice; (1) they can accept the issues for what they are and know that if they wish to in the future, they can fix the items themselves or hire a contractor to fix them at their expense, (2) the buyers can submit what is called a residential real estate due diligence request to the seller. This is a formal signed request to the seller of the property to either fix the issues found or in leu or fixing them, the buyer can request that the seller reduce the agreed upon sales price to compensate for the found issues.

Do sellers have to fix items found during the due diligence period?

Unfortunately, the sellers do not have to agree to either fix nor reduce the price of the purchase contract, if a North Carolina residential real estate due diligence request is received by the seller. This can be a potential issue for the home buyer.

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Hopefully we were able to shed some light into what exactly Due Diligence is and what it involves in North Carolina residential real estate transactions. This is not necessarily a difficult process, but is vital to understand during the home purchase process in North Carolina so you are, to the best of your ability, aware of the condition of the home you are purchasing.

Call one of our agents here at Southport Oak Island Realty Group to help you through the process and get you into the home of your dreams!

Contact an Agent Today

For more information on due diligence in North Carolina please click on the link below to read from the Due Diligence Questions and Answers Bulletin from the State of North Carolina Real Estate Commission.

Links:

Questions and Answers on Due Diligence – North Carolina Real Estate Commission

If you’re considering selling your home in this competitive Southport real estate market, you probably have questions about the  4% commission for home sellers. You might also be exploring the benefits and disadvantages of selling your home yourself versus hiring a professional agent.

If you choose to sell your home yourself, you will pocket the 4% seller’s commission. However, you will have to dedicate ample time and effort:

• to research comparable properties,
• set an asking price,
• stage,
• photograph,
• market,
• advertise,
• arrange open houses,

Is the 4% Sellers Commission Necessary?

All of those reasons may lead you to want to partner with our beloved team of Southport area real estate agents. We offer many white glove services that our local competitors simply can’t.

We’re family-owned with over 40 years rooted in the North Carolina beach real estate market, and we do it all at a 4% seller’s commission, without any additional cost to you.

Let us show you the value of working with us.

Is This the Best Time to Sell Your Oak Island Beach NC Property?

Four reasons to consider selling your Oak Island Beach NC real estate right now.

1. Oak Island and Southport’s real estate property values continue to see an upward trend.
2. The number of for-sale Oak Island homes is minimal, creating competition among buyers and greater demand.
3. There is a lot of interest in relocating to Oak Island as it’s close to major cities and towns like Wilmington, NC, New Bern, NC, and Jacksonville, FL, but it still maintains its small-town feel.
4. The Oak Island infrastructure is developing rapidly, with new commercial projects being built just outside the city limits all the time, providing more job opportunities in the area.

It’s no secret that the North Carolina beach real estate market is hot. Are you ready to talk about selling your Oak Island Beach home? Start with Oak Island real estate’s most trusted experts.