The market value of a home varies based on several determinants. Prime factors include its location and the current prices of comparable homes in the vicinity. The home’s age and state also play a crucial role. Are significant repairs required? If yes, this could potentially decrease the property’s value. Furthermore, prevailing market conditions, shaped by supply and demand, influence home prices. As a realtor, it’s imperative to educate your clients about these aspects and list their property accurately.

In real estate dealings, agents are typically compensated by the seller through a commission rather than a fixed fee. The usual commission rate is 5–6% of the home’s selling price. Often, the commission is equally divided between the buyer’s and seller’s agents, with each getting 2.5–3%. Brokers or agents can use a real estate commission calculator to easily determine their potential earnings. It’s also worth noting that some agencies might offer services at a discounted rate, approximately 3%, or charge a flat fee. While these options might be cost-effective, they could sometimes reflect a compromise in service quality.

Indeed, in real estate, most things are open to negotiation. There’s often a gap between a home’s asking price and its final sale price. The state of the current market dictates the extent of negotiation flexibility. If you’re a buyer in a market where supply exceeds demand, you might find room to purchase the house at a price lower than listed. On the other hand, if you’re a seller in such a market, the house might generally sell for less. However, the unpredictability of real estate means there’s always a chance someone might step in and match the asking price.