Selling a house can be an overwhelming process and there are various approaches to select from, each with their own advantages and disadvantages. Additionally, it is critical to remember that different methods come with varying costs attached – such as commissions. In this article we will delve into the diverse ways to sell a home while also exploring whether or not they require commission payments.

Traditional Sale

When you sell your home through a traditional sale, the process can be daunting. You will need to enlist the help of a realtor who will assist with establishing an appropriate price for your property and facilitate marketing efforts as well as any negotiations between buyers and yourself. However, this service does come at a cost – typically 5-6% of the total sale amount. This fee is usually split evenly between both agents involved in the transaction – 3% for each agent’s role within it.

For Sale By Owner

A For Sale By Owner (FSBO) sale provides an opportunity to sell your home without the help of a real estate agent and is an excellent way to save on commission fees. The key takeaway here? You’re in charge of all marketing materials and negotiations, which can take up more time than you anticipated. However, there are still associated costs that may be involved—watch out for buyer’s agents who could be expecting commissions ranging from 3-5% of the purchase price! Fortunately, this fee remains negotiable so don’t hesitate to bargain for better terms if possible.


When you auction your house, you will establish a reserve price and let prospective buyers bid on the property. Generally, an auctioneer’s commission must be paid; it equals 2-5% of the sale price and can be shared between purchaser and seller depending on their agreement.

Selling to a Home-Buying Company

Selling your house to a home-buying company involves selling the property directly to the company, often for cash. In this method, you won’t have to pay commission fees to a real estate agent. Many home-buying companies will also cover any closing costs so you can have a worry-free sale. You may not get as much money for your property as you would in a traditional sale, but the trade-off is selling your home very quickly and with very little hassle.

Short Sale

If you owe more on your mortgage than your house is worth, you may be able to sell the property through a short sale. In a short sale, you’ll work with your lender to sell the property for less than what you owe on the mortgage. In a short sale, you won’t typically have to pay commission fees to a real estate agent. However, you may still have to pay some fees associated with the sale, such as closing costs or title transfer fees.

When it comes to selling your house, the pathway you select will greatly determine if commission fees apply. Generally speaking, whether you opt for a traditional sale option, an FSBO sale or auction – these all involve paying commission fees to real estate agents and/or auctioneers. Short sales have the potential of waiving such payments; however they could still come with other associated costs. The ultimate way to avoid any extra monetary outlays is through selling directly to a home-buying company!

Learn more about our home-buying process here!

Get Your No Obligation Offer in 24 Hours or Less!

Give us a call at (804) 877-0906 or fill out our form to get started.