Why Hire a Real Estate Agent When Selling a Home?
Can You Save Money by Selling Your Home Yourself? Maybe, Maybe Not
Why hire a real estate agent? Why not sell or buy a home FSBO (for sale by owner) and save thousands of dollars in commissions?
- The biggest reason to sell your home yourself is the commission savings. If you work with an unrepresented buyer, you can save 6%.
- You have more control over your marketing, showings, and open houses.
- You can protect your privacy.
The home seller with lots of free time and real estate or marketing experience may be able to save thousands. However, many are not equipped to professionally sell their own homes.
Real Estate Sales Commissions By Sellers
A 6% real estate commission to a real estate agent on a $200,000 home is equivalent to $12,000:
- This is a lot of money to most people and it’s tempting to sell themselves and skip the agent.
- If the home seller has experience in marketing and is educated in real estate, this could mean huge savings.
- However, most homeowners who do not have experience in buying or selling homes can hinder a fast home sale. They don’t understand pricing. They don’t have time to hold open houses. And they can’t interrupt their work to show the home during the day.
Fortunately, a full-service agency with a 6% commission isn’t the only option for selling a home.
Advantages of Hiring a Real Estate Agent
Homebuyers, especially first-time homebuyers, should probably get representation from a buyer’s agent.
Real estate agents are professionals who can help with local knowledge concerning schools, amenities like shopping, restaurants, and churches, comparable sales (home values), foreclosure rates, and tax rates.
Real estate agents can also pinpoint potential listings that are not yet on the market. They can save buyers time by previewing homes and helping narrow the search.
Real estate agents have the experience that a homeowner or home buyer does not have.
- Homebuyers and sellers can have a lot of resources online needed to purchase a home or selling a home. But the experience of a Realtor can be valuable for the busy or inexperienced buyer or seller.
- Homebuyers are not responsible for the sales commission to the real estate agent
- Home sellers are the party responsible for the sales commission
A real estate agent can bring a much valuable asset to both the home buyer and home seller and help them make informed decisions.
Discount Real Estate Brokerages
It’s possible to save money when listing a home for sale. Sellers can choose from a range of services and fees:
- For Sale By Owner (FSBO) means doing everything yourself — preparing the home, advertising, showing the property, negotiating the sale, preparing the contract, and closing. That is more than most people want to take on but for the right seller, it’s a good option.
- MLS placement: For a fee, you can get your home listed in the local Multiple Listing Service (MLS) and available for agents to show their clients. Understand that you’ll have to pay some commission (probably 2.5% to 3%) to an agent who brings you a buyer and helps you complete the sale.
- Fee for service: You can order a range of services to help sell your home, from flyers and signs to `a website for your home.
- Full-service discount brokerage: These companies offer the same list of services that a full-service and full fee brokerage do. And you can save 1% to 3% of the commission costs. Buyers can save as well because some firms rebate part of the commission to the buyer if they end up representing both the buyer and seller.
- Full-service full fee brokerage: the traditional model. If you have a relationship with an agent, as many property investors do, it might make sense to keep this person on your team and pay the full commission. This might also apply in buyer’s markets or for unusual properties.
Homebuyers who need to qualify for a mortgage with a national mortgage company licensed in multiple states with no overlays on government and conventional loans can contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.