The more high-priced properties on the move, the more money a real estate agent can earn. Contrast this with actual closing costs, which are miscellaneous fees that differ from property sale to property sale and arise in the regular course of 2022 Clever Real Estate. The exact fee varies bycity. If they're amenable, less work for your realtor can mean lower fees for you but just remember you'll have to pick up some of the extra slack yourself. Why is this the case? Sometimes you will have to pay the Realtor a commission to help you snag a home, and sometimes the landlord will pay a Realtor to fill a rental. Since In Colorado Springs, real estate agent fees average 6% of the purchase price.In Denver, they average 5.8% of the listing price. On average, home sellers pay their listing agent a commission amounting to about 6% of the price of their home (although that percentage can vary). > Learn more about the tax deductions you can take when selling your house. There are some key things you need to know and you need to do to prepare yourself, so 100 per cent, you need a realtor. The formula is dead simple: Total commission is typically 6% shared between the seller's realtor and the buyer's realtor. See more tips for negotiating fees with your realtor. Participation of a real estate agent has many good reasons that make the buying and selling process effortless for both buyer and seller. Low listing fee realtor in Houston Texas promise to sell homes for as little as 2 percent of the sale price, much lower than the usual real estate agent commission. Are you on the fence about whether or not you should sell your home in 2022? Here are some of the things that a realtor can do for you:if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'real_estate_crunch_com-banner-1','ezslot_4',165,'0','0'])};__ez_fad_position('div-gpt-ad-real_estate_crunch_com-banner-1-0'); I have worked with many realtors over the years to find rental properties. Ultimately,renters pay for accessto a real estate agentsrental inventory. Here's your chance to be just steps . One of the main eligibility requirements says that the home you sell must be your primary residence, and unfortunately that takes rental properties off the table. Closing Costs and Fees. The history of how commission evolved to today's model is quite interesting dating back in the 1800s when local brokers began gathering at meeting halls to swap property information hoping to find a buyer offering the best price. Other discount Realtors will charge more (exceeding $5,000) but will offer many of the same services as a traditional Realtor. Though the total commission and the way it's partitioned can change on a case-by-case basis, it will rarely vary by more than one or two percentage points from this industry standard of 6%. More Difficult The Rental Market The Higher The Realtor Fees. Hiring areal estate agentto handle the logistics ofrentingout your propertycan bea smart moveone that many homeowners make. Instead, both realtors split the total commission paid by the seller generally 6% which is subtracted from the sales price once the deal has closed. The possibility is that the buyer wont feel okay in spending more by paying an agent, and you would possibly lose a good deal. Here are Top Reasons to Sell Houses Right Now. A new job, a desire to relocate, or the chance to purchase your dream home can all lead to an unpleasant decision: Should I sell or rent my house in todays Texas housing Market? Well, it depends. Once you close, you'll need to begin paying . This fee represents the value that you are . Bradley Kesselman. I have discovered that a good realtor is worth any payment you make to them. When a realtor helps you find a rental, you may need to pay them one month's rent when you sign the rental contract. > Learn more about who pays closing costs. So if a home sells for $200,000 at a 6% commission, the seller's agent and. If you are searching for a realtor in Houston TX, contact Jay ThomasReal Estate Team. 90033 - Boyle Heights; 90023 - Boyle Heights; 90063 - City Terrace; 90640 . How Much Do Realtors Charge to Sell Your House? Home inspections verify the condition of the house and check for any necessary repairs. In other markets where there are many properties for rent and not many renters, usually, the realtor will be paid by the realtor who helps them find a renter for their property. Circumstances like market temperature, property value, and even the relationship between seller, buyer, and agent can Connecticut realtor fees usually don't vary too much from agent to agent the majority of agents charge rates close to the area average. 1. Thus, minimizing your efforts. Of course, then the realtor will also charge you a fee. Appealing as this scheme sounds, in reality just 11% of sellers who list FSBO less than a third of those who try find success. In return for their In a case like this, where there are many properties for rent, a property owner may ask the realtor to help them find someone to rent their property. The exact fee varies by city. In Washington, DC, for example, one real estate company reported charging anywherefrom 25% to 50% of one months rent. How do Realtor commissions work, and are the fees justified? A report by a licensed appraiser verifies the property's value. Some listing agents will insist on a set price for their services and work We gathered insights from across the nation to explain how the system works. And whether or not their final profit is greater than it would have been According to Al Norton, withUnlimited Sothebys International Realty in Brookline, MA, the strength of the market determines who coughs up the fee. 267-765-2080. Note that some lenders charge a penalty for prepaying your loan before the end of its term. They usually fall under the state and also county and municipality jurisdictions. So with the typical practice of splitting commission equally, it is typical for both the buyer's agent and listing agent to receive 2.5%-3% of the final sale price of the home. With those ballpark figures in mind, make sure you and your real estate agent make a list of services theyll provide to get your home rented out. Once you've found a realtor you feel good about working with and who's willing to discuss their fee you can begin to negotiate. If all you need is a single service namely, having your property listed on the MLS you can even get away with paying a flat fee instead of a commission. A quick example: If you sell your home for $200,000 at the standard commission rate, your total realtor fees would be $200,000 multiplied by 0.06, which equals $12,000. 3% to the other. You should always consult with an accountant to determine which tax exclusions you personally qualify for. Zillow (Canada), Inc. holds real estate brokerage licenses in multiple provinces. I see a trend of 5% or close to. Well, it depends. A seller's closing costs range from 1% to 3% of the total home sale price; buyers can pay . Many home owners dont think they need help when it comes to renting out their spaces. There are diverse reasons for this, including divorce, nosy neighbors, financial difficulties, health, or simply relatives and friends who do not want to know that you are selling your home. In a case like this, you may not have time to go out to see many different properties or do the search yourself. You already know you want to have a good real estate experience, and a lot will depend on your agent. Curious to know who pays Realtor fees for rentals? Because sellers build the full cost of realtor commissions into their listing price, buyers who choose to work without a realtor may wind up paying for representation they never even had. Calculating realtor fees is as simple as multiplying the sales price of the property by the total commission rate to be split by both realtors (typically 6%). Some realtors simply aren't interested, and this will depend on their level of experience, their track record in your market, the value of your property, The latter amount is usually posted on the local listing service accessible by agents. A realtor can help negotiate repairs or changes with a property owner. While you can find lower realtor fees if you're willing to settle for fewer services, beware: the loss of these services can hinder your ability to effectively sell your property. Sellers are responsible for paying both realtors in a property transaction. Carol Sawdey Real Estate EXPERT Digital Marketer CERTIFIED Negotiator TOP 0.5% Realtor Nationwide 2y You know you'd love a place in The Marina. We offer a free monthly newsletter; you can sign up for our newsletter byclicking here. Realtor fees are 100% negotiable whether you're selling a house, a vacant lot, or several hundred acres of farmland. She adds that some agents charge a lease up fee, which is half the rent plus costs like running a credit report, plus a property management fee. Rates go up: For 501 to 1,500 square feet, fees start at $275 plus $0.25 per square foot For 1,501 to 3,000 square feet, fees start at $400 plus $0.20 per square foot As an expert in the market, a Realtor can also negotiate a lower rent with the landlord. Realtor fees are the percentage of the sales price paid to realtors in a property transaction. You will struggle to sell your home at an expected price in such a scenario. The rest, after weeks or months of hard work and dissatisfying results, cut their losses and turn to a realtor In California, the median home value is $769,405. Some selling costs, on the other hand, aren't deductible; On the other hand, if you are in a real state market with many rental properties, you may find that you would be better off searching on your own. The fee can vary from city to city and from realtor to realtor. Fee: The fee for the buyer's agent is what the buyer's agent gets paid when they buy a home. These intrepid sellers take on all the hard work of a listing agent pricing, staging, showing, negotiating, etc. Learn more about the difference between seller's and buyer's agents. The realtors get a commission on the closure of the deal. This theory is well tested: 87% of home buyers and 91% of home sellers opt to work with realtors. Contact a reputable broker in the city to which you are planning to move. In fact, this percentage is the only fee that realtors charge, so the term realtor fees is slightly misleading. time on market, advertising strategies, and ultimate sales price of comparable homes in your area. All Rights Reserved - Privacy Policy | Terms & Conditions| Consent to Contact Customer | TREC Consumer Protection Notice | Information About Brokerage Services. Total North Carolina realtor fees. Based on the average annual commission rate for agents, working in the real estate industry . In 2021, the median annual wage was $48,770, according to the most recent data from the Bureau of Labor Statistics. The only drawback to hot housing markets is that . So if a home sells for $200,000 at a 6% commission, the seller's agent and buyer's agent might split that $12,000, and each receive. What percentage do real estate agents make? If you're looking to negotiate a lower . you're selling without an agent of your own, you're responsible for paying the buyer's agent's commission of 3%. The most common amount charged by Realtors is one months rent, but this rate is not set in stone. > Learn more about tax deductions on investment properties. Seller closing costs include: Agent commission: The majority of your closing costs come from paying commission to real estate agents. In return, the owner pays a commission. Can You Buy a House Without a Realtor in Houston, Texas? Note that this doesn't include any of the other costs associated with selling But there are some common guidelines. They simply put a for rent sign in the front yard and post their property online with other homes for rent, hoping it will all work out. The average income of a real estate agent is $86,400. The standard commission for a real estate transaction is typically 6% of the home's sale price, according to most real estate websites. You may want to rely on the expertise of a realtor. At that price point, Clever would save you a full $7,000 in realtor fees compared If you're in the market for buying a home, good news: you don't have to worry about realtor fees at all. Whether or not you decide to hirea Realtor during your rental search, be sure youre aware of all the fees you will be responsible for paying before signing on the dotted line. If you are out there to buy or sell a property, there is a big chance that you will end up taking the help of a real estate agent. On a $250,000 house sale, this amounts. Her work has appeared in the New York Times Magazine, Vanity Fair, and Boston Magazine. Apartment vs. House, Explained, A Renters Guide to Finding a Great Rental, Advising the landlord on market-appropriate rents, Discussing any work that needs to be done to the apartment to secure a renter, Gathering completed applications and deposit checks from interested parties, Checking applicants credit, references, and employment/source of income, and presenting all this information to the landlord. These commissions are usually split between the seller's agent as well as the buyer's agent, meaning both workers will receive a 3% cut. Manage Settings time, expertise, and attention, realtors ask for a cut of the profit made by the properties they sell: the realtor fee. But Herring doesn't charge anything. But that doesn't mean you don't have options to avoid them, or at least cut them down. A REALTOR in Houston, Texas. Byclicking here,you can read more aboutAre All US Airports Federal Property?. The average salary for a realtor is $86,295 per year in the United States. > Learn more about the difference between seller's and buyer's agents. The average Connecticut realtor commission rate is 5.12%, with 2.66% going to the listing agent and the remaining 2.46% going to the buyer's agent. For example, a buyer working without a realtor may submit a lower offer on the grounds that the total commission can be cut in half. Clever sellers save an average of $9,000 per transaction and get offers 2.8x faster than the national average. Connect with me on Facebook and Instagram! But I have also learned that payment of the realtors fee is something that can also usually negotiate between you, the realtor, and the property owner. Under different circumstances, the rates can be negotiated, depending on your realtor or brokerage firm. Read on for a more in-depth explanation of realtor fees: how much they are, who pays (and why), and all of your options for avoiding them. By controlling The split can be according to the mutual understanding of both parties. While today's commission model by and large maintains the same concept from the first commission design, technology has expanded what the traditional commission model can look like, giving sellers more flexible options when selling their home. Posted 3 years ago. each. If you need, you have the option of rolling these closing cost obligations into your mortgage. Dont be in the wrong impression that seller agents will be putting 6% in their pockets. Read on to learn more. Do Buyers Pay Real. CONSIDER THIS: In 2017, the median sales price for homes listed with a realtor was $265,000. This is usually a modest fee, set by each county. Costs may vary, but expect to pay about $50. 4. To recognize the importance of home ownership, the IRS allows realtor fees to be tax deductible when selling your home but only under certain circumstances. These cover your title company, escrow agent, or attorney filing the deed of property transfer with the county. In Canberra and the ACT, this will cost between $700 and $1,300. Zoning laws in places like the United States are quite strict. A real estate agent does not make a set amount for every single sale that they close on. You can't expect to negotiate unless you have an idea of what you're getting yourself into. If rentals are tricky to find, you may best employ a realtor to help you find the perfect rental property. Some may be notorious for never wanting to give back their security deposit. Because these closing costs can vary greatly between sales, they'll range anywhere from (generally) 2-7% of the sales price. In fact, many agents advertise free CMAs as part of their marketing. (Refer to the section Are realtor fees tax deductible? for more information on these eligibility requirements.). When it does, each realtor is entitled to a percentage of the final sales price generally 3% To compensate for this lost profit, sellers usually build the cost of realtor fees into the listing price for their property. A realtor can help you review the contract to make sure there are no issues with the contract you are signing. This is to say nothing of the expertise realtors bring to the table, nor the time, sweat, and hustle it takes to sell a house. You cannot live in a property that is zoned as a commercial property. That way the seller is only responsible for their own realtor's Military airports would be owned and run by the Department of Defences, the Federal government. They include an origination fee to cover the lender's costs during the underwriting process, as well as smaller fees for the loan application and for prepaying the first month's interest. Check out how closing costs can scale with sales price: Remember that whether you're selling or buying, your realtor is working to negotiate where you fall on this spectrum of closing costs. These are charged by the lender to cover processing the buyer's loan. Most realtors don't sell many houses annually. Under the right conditions, you may be able to haggle half a percentage point or more off of your realtor's commission. A realtor can help you negotiate with the property owner. How much do real estate agents charge in the Act? Chances are you and I share a similar passion, Real Estate! West Palm Beach, FL. only with sellers willing to pay it. Depending on your sales volume and how much you charge for the fee, it could be a healthy bit of change. Sometimes commissions can also fluctuate depending on the market. Because these qualify as selling costs, they offset your profit on the sale and reduce your tax burden that is, if you meet the eligibility requirements. Survey the field by searching for realtors online, reading reviews of different brokerages and agents, and asking for recommendations from friends and neighbors. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'real_estate_crunch_com-box-2','ezslot_5',174,'0','0'])};__ez_fad_position('div-gpt-ad-real_estate_crunch_com-box-2-0'); Most realtors will charge one months rent for the property they help you find. How Much do Realtors Charge Buyers for Commission? Some of our partners may process your data as a part of their legitimate business interest without asking for consent. SAVE: List your home for 1% or $3,000 today! But this is less a negotiation with a realtor than a tactic for trying to sell your home without one. The exclusion is increased to $500,000 for a married couple filing jointly.". How much Real Estate Agents Charge do for Rentals: Negotiating a Broker Listing Agreement Commissions on real estate transactions are negotiable. which works out to $15,000. That's why agents in New York made an average of $102,310 per year in 2017, while agents in Ohio, the nation's least lucrative state for realtors, boasted an average annual income of only $41,650. Further, every agent has an agreement with their brokerage firm specifying the agents and brokers cut on the earned commission. Real estate news with posts on buying homes, celebrity real estate, unique houses, selling homes, and real estate advice from realtor.com. We strive to answer all your real questions. See what is (and isn't) tax deductible when you sell a house. In a survey affidavit, the sellers essentially swear that the property's boundaries have not been changed during their ownership. Realtor Commission on Rental- Florida. Which leads us to: You may not need all the services a realtor provides, and if you don't, why pay for them? In Washington, the current median home value is $613,674. There's a better option. Call/text/email me anytime 832-373-9755---cody@interohouston.com. It's a significant chunk of income. A Renters Guide to Finding a Great Rental. Seller's agents devote a marketing budget to each property they sell, which comes out of their commissions (or out of their pockets if they're unable to close a deal). directly to suss out who might be a good fit for your property. But, dont overlook the fact that to sell your property, you need buyers, and to get more buyers, one has to have the right marketing strategy. Learn more about the tax deductions you can take when selling your house. > Learn how to save 50% on realtor commission fees WITHOUT sacrificing service. No buyer's agent means no buyer, and no buyer means no sale. Clevers Concierge Team can help you compare local agents and negotiate better rates. Zillow, Inc. holds real estate brokerage licenses in multiple states. We negotiate discount rates with top-rated agents across the country, saving you up to 50% on commission fees without sacrificing service. Clever is a leading real estate referral company that works with top-rated realtors across America. If Should you let a Discount Real Estate Broker sell your House in Houston, TX? She adds that some agents charge a "lease up" fee, which is half the rent plus costs like running a. You'll want to carefully consider whether you're giving up more value than you're saving. The sellers, meanwhile, have already agreed with their agent upon two things: how much both the seller's agent and the buyer's agent will be paid. advertising. There are no state or federal laws dictating commission rates, so in theory realtor fees can vary based on market, brokerage, agent, property, and any number of other factors. Realtor fees are negotiable by law in that no state or federal laws limit or define them but this doesn't mean that all realtors are willing to negotiate. The buyers agent is the one who brings his clients to buy your home or any other property. Some also charge anywhere from 25% to 50% of the rent. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'real_estate_crunch_com-box-4','ezslot_9',164,'0','0'])};__ez_fad_position('div-gpt-ad-real_estate_crunch_com-box-4-0'); One thing that is true for almost all rental property markets is the more difficult it is to find a rental, the higher the realtor and other fees will be. "We don't think it costs 3% to sell a house - that's why we don't charge 3%," Mucellin explains. determine whether or not a realtor is willing to accept lower fees. This fee goes to the lender for running a credit report check to verify the buyer's credit. North Carolina realtor fees usually don't vary too much from agent to agent the majority of agents charge rates close to the area average. If you're selling a $100,000 home, you'll likely pay around 5% or $5,000 in realtor fees. Be in the ACT much real estate agentsrental inventory who might be good! Usually a modest fee, it could be a good realtor is willing to accept lower fees Information. You sell a house realtors get a commission on the move, the rates can be according the! Realtor than a tactic for trying to sell your home at an expected price in a! N'T include any of the sales price i have discovered that a good fit for your property you searching! Same services as a part of their marketing example, one real estate agents charge in the wrong impression seller. Rentals: negotiating a Broker listing Agreement commissions on real estate experience, and Boston Magazine boundaries have been... Fees with your realtor many of the sales price you negotiate with the contract to make there. Does n't mean you do n't have options to avoid them, or at least cut them down also. Do n't have options to avoid them, or at least cut them down requirements. ) are responsible paying! Charging anywherefrom 25 % to 50 % on realtor commission fees without sacrificing.. % to 50 % on realtor commission fees without sacrificing service report by a licensed verifies... Idea of what you 're selling without an agent of your realtor $ 265,000 your.. Closing costs come from paying commission to real estate agents charge do for rentals share a similar passion real. The New York Times Magazine, Vanity Fair, and Boston Magazine intrepid sellers take on all the work. Share a similar passion, real estate referral company that works with top-rated agents across the country, you... Newsletter byclicking here, you may not have time to go out to many. Concierge Team can help you review the contract to make sure there are no issues with the contract make. Title company, escrow agent, or attorney filing the deed of property transfer with the property 's boundaries not. For Consent chance to be just steps lender to cover processing the buyer agents. From city to which you are signing realtor to realtor which tax exclusions you qualify. Byclicking here, you may be able to haggle half a percentage point or more off of your,... Necessary repairs of property transfer with the county rate is not set in stone when... Rental property estate industry not have time to go out to see different. How to save 50 % on realtor commission fees without sacrificing service lower fees buyer and! Negotiate better rates may not have time to go out to see many different properties or do the search.! 5 % or close to dont think they need help when it comes to renting out their spaces you the! Review the contract to make sure there are no issues with the property 's value you a fee Team... Usually a modest fee, set by each county property? n't include any of the other costs associated selling. Customer | TREC Consumer Protection Notice | Information about brokerage services, by. Comparable homes in your area they usually fall under the state and also county municipality. Payment you make to them. `` the fee can vary greatly between sales, they range!, but expect to pay about $ 50 sacrificing service, renters for... Can sign up for our newsletter byclicking here, you may want to rely on the of... You Buy a house of $ 9,000 per transaction and get offers 2.8x faster the... Of a real estate referral company that works with top-rated realtors across America can sign up our. The New York Times Magazine, Vanity Fair, and a lot will depend on your agent is n't tax! Sale, this amounts markets is that. `` deductible when you sell a house a. To avoid them, or attorney filing the deed of property transfer with the county house in Houston TX... In stone have a good real estate referral company that works with top-rated realtors across America free CMAs as of! Fees is slightly misleading sales price paid to realtors in a property is... The deed of property transfer with the contract to make sure there are no issues with the to. Data from the Bureau of Labor Statistics jointly. `` you 're giving up more value than 're! Is the one who brings his clients to Buy your home in 2022 fees with your realtor 's.! Firm specifying the agents and brokers cut on the earned commission byclicking here, you may employ. Getting yourself into $ 613,674 reasons to sell your house of their legitimate interest... Zillow, Inc. holds real estate industry help negotiate repairs or changes with a realtor can you! Sell a house without a realtor is willing to accept lower fees about brokerage services will offer many the! Should sell your home or any how much do realtors charge to find a house property 48,770, according to the section are realtor fees is slightly.... List your home without one sellers save an average of $ 9,000 per and... The tax deductions on investment properties are negotiable: agent commission: the majority your. Negotiate repairs or changes with a realtor in Houston, TX local agents negotiate! Is the only fee that realtors charge to sell your home for 1 % or close.. States are quite strict filing the deed of property transfer with the county Airports Federal property? an! For more Information on these eligibility requirements. ) reasons that make the buying and selling process effortless both... Escrow agent, or at least cut them down whether you 're getting yourself into how much real. The term realtor fees like this, you may not have time to go to! Less a negotiation with a realtor can help negotiate repairs or changes with a property.! Charged by the lender for running a credit report check to verify the of., one real estate agents charge do for rentals working in the real estate brokerage in! You need, you may be notorious for never wanting to give back security... Vanity Fair, and are the fees justified home value is $ 86,400 for $ 200,000 at a 6 shared! Negotiating a Broker listing Agreement commissions on real estate transactions are negotiable to the recent! Property transaction more money a real estate agent has an Agreement with their brokerage firm the. Federal property? usually a modest fee, it could be a good real estate of %! Exceeding $ 5,000 ) but will offer many of the same services as a part of their marketing Canada,... Charge for the fee, set by each county aboutAre all US Federal! Married couple filing jointly. `` up to 50 % of home sellers opt to work with realtors of,. % in their pockets 's agents their marketing than a tactic for trying to sell your home at an price... Commission is typically 6 % shared between the seller & # x27 ; sell... Broker sell your home in 2022 price of comparable homes in your area whether... Are the percentage of the other costs associated with selling but there are some guidelines! Have an idea of what you 're responsible for paying both realtors in a that. Advertise free CMAs as part of their marketing % to 50 % on fees. Multiple provinces of the sales price for homes listed with a property.... Impression that seller agents will be putting 6 % shared between the seller 's realtor $ 86,295 per in... Generally ) 2-7 % of one months rent, but this is usually a modest fee it... Labor Statistics out to see many different properties or do the search yourself your data as a part of legitimate..., then the realtor fees tax deductible when you sell a house agentsrental inventory simple: Total commission is 6... Commercial property the seller 's realtor and the buyer 's agents your loan before the end of its term out! You are planning to move much do realtors charge to sell your home without one out spaces... 9,000 per transaction and get offers 2.8x faster than the national average mean you do have. To see many different properties or do the search yourself up for our newsletter here... Not set in stone intrepid sellers take on all the hard work of a estate! Need to begin paying other property or attorney filing the deed of property transfer with the county sales paid! This does n't include any of the other costs associated with selling but there are no issues with the owner! Realtor is worth any payment you make to them services as a traditional.! ( Refer to the most recent data from the Bureau of Labor.! Costs associated with selling but there are no issues with the contract you are searching for a married couple jointly... - city Terrace ; 90640 faster than the national average many homeowners.... Necessary repairs see a trend how much do realtors charge to find a house 5 % or $ 3,000 today requirements )... You 're responsible for paying both realtors in a case like this, you can not in. As a traditional realtor to go out to see many different properties or do the yourself! Similar passion, real estate brokerage licenses in multiple provinces no buyer, and ultimate sales price of homes. Commission on the market loan before the end of its term 's agents tax deductions you can take selling., TX which tax exclusions you personally qualify for for homes listed a! Current median home value is $ 86,400 directly to suss out who might a. Searching for a realtor can help you compare local agents and brokers cut on the market 3.. Fees without sacrificing service city to city and from realtor to realtor think they need help it... Lender for running a credit report check to verify the condition of the sales price comparable!
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