Hiring Real Estate Agents: Can Sellers Save Money?
People are always looking of ways of saving money. Home sellers need to pay a real estate agents commission of 6% once the real estate agent sells their home. 6% of a $200,000 home is $12,000 and that is no chump change. Home buyers feel that buying a home without real estate agents will get them a better deal on their home purchase. The key question is will trying to market your home save you money by not hiring real estate agents and trying to sell your home yourself? The answer is it depends.
Real Estate Market
When the real estate market is hot, homes are selling the minute your home hits the marketplace. Many sellers who list their homes in a seller’s market often see multiple offers where they eventually get a purchase contract over their list price. However, in a buyer’s market, inventory exceeds demand and your home can be sitting in the marketplace for months, sometimes over a year. In a sluggish housing market where there is a surplus of inventory, real estate agents will be your savior in selling your home for the right price and in the quickest amount of time.
Marketing Your Home
If you intend on marketing your home yourself, photos are key. Many home buyers will pass over listings without photos or photos that are not clear. Professional real estate agents hire professional photographers to take photos of your home. Signage should be posted in front of your house where the phone number is large enough and visible. Professional real estate agents will also post their website and links to virtual tour of the subject property on the signage. Professional real estate agents will also have a box on the signage with marketing materials which consists with color photos and selling points of your home. Real estate agents will most likely offer open houses for your property. Invitations to open houses are normally advertised before hand via newspaper adds, mass emails, and other marketing techniques.
Hiring Real Estate Agents
Granted, paying 6% of your sales price to full service real estate agents is a lot of money but you need to realize the benefits real estate agents offer. Real estate agents will advice you on the comps that recently sold in your area. Real estate agents do not get paid unless your home is sold. They do not want to waste any time in showing your property to unqualified home buyers. Real estate agents normally do not show your property to home buyers that do not have solid pre-approval letters. Some real estate agents will contact the home buyer’s mortgage lender and question them on how solid the potential home buyer is. Real estate agents will help you price your home where the deal will go through. Pricing your home too high might backfire on you. For example, if your home is only worth $200,000 and you price it at $250,000 and get lucky and get a home buyer willing to pay $250,000, the chances of your deal going through is not good because the appraised value will only be $200,000. It is possible only if you have a cash buyer with no mortgage required. This does not happen often.
Pros And Cons In Hiring The Services Of Real Estate Agents
There are pros and cons in selling your home yourself. If you are a marketing guru and are familiar with real estate, then you can try marketing your home yourself. However, if you need to sell your home fast and cannot devote time to marketing, the hiring an aggressive, knowledgeable real estate agent is strongly recommend.
By Gustan Cho