Price and Cost Between Buyers and Sellers

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You might think price and cost are the same, but in reality, they are extremely different! They have different meanings for buyers and sellers.

On the buyer’s side, price is what goes to the seller. For buyers, cost includes mortgage payments, utility bills, ongoing maintenance expenses, and replacement fees of aging parts of the home (like the roof).

However, the seller’s side is a little bit different. Sellers earn the price from the buyer, but the cost is what they walk away with. The cost to a seller would include bank commissions, inspections, required certifications, taxes, and similar expenses.

Particularly, when you pay an agent a commission, sellers need to weigh both the price and cost. The seller pays the price, but the cost must be considered. For instance, if an agent sells home for 2% more than the average list-to-sale price ratio, they can help you earn 2% more on average from your listing.

If you have any questions about today’s topic or anything else real estate related, please reach out. We’d be happy to address any concerns and answer all of your questions.

How We Helped Karl Safran Buy His First Home

"We finally bought our home, it was our time. We went through Linda, and everyone that works with her. It's a great team. They made it a simple process, we were in and out in a hour. I highly recommend them." - Karl Safran

How We Helped Amir Elboghdady With His Real Estate Needs

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"I worked with Linda at Re/Max. I had traveling conditions with my job, she not only helped me, but communicated with me in the right manner. We expedited the whole process, and in five weeks we closed, so I really appreciated her help." - Amir Elboghdady