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Should you List Your Home With a Real Estate Agent?
As selling a home becomes more competitive, it is natural to wonder if you are better off selling your property without a real estate agent, thereby cutting out the middleman. In order to make an informed decision it is important to consider what a real estate agent can offer.
More Money
Expect a Higher Selling Price
There are lots of sites where you can view price estimates for your home before you list it for sale, but you take a risk using them. In some markets, online estimates can be off by as much as 35 percent, and they often rely on tax records and data that can be as old as 6-12 months. Realtors® know the local market, have access to the freshest sale data, and can price your house in line with the market to maximize your earnings. In 2012, sellers using an agent got $40,100 more:
The median sale price for the 88% of sellers who worked with an agent was $215,000, versus a median sale price of $174,900 for the 9% of sellers who didn’t use an agent.
Negotiations
Will Negotiate for You
Negotiations on a home sale include more than just price. Agreements must also be reached regarding financing, date of possession, inclusion or exclusion of furnishings or equipment and repairs to the home. Today’s contracts can be 50 pages long — not counting addendums and riders. Realtors® can help you navigate these complex documents and craft an attractive offer that makes sense for you. Plus, when it comes to negotiation, your Realtor® is your advocate and can bring an objective voice to a very subjective situation. A real estate agent will conduct these negotiations on your behalf.
Less Out of Pocket
No Advertising Costs
All advertising and marketing costs associated with selling your home are absorbed by the listing agent. You don't have to think about where you're going to find the money for marketing or what sources you are going to use to advertise.
This is an area of exertise for Dorothy & her daughter Stacie. Besides getting your home on the MLS (Multiple Listings Service) they work with dozens of local and nationwide websites to advertise your home.
Representation
The Buyer's Agent
Buyers may bring a buyers agent with them. She does not work for you, but cares only about the best interest of her clients. A real estate agent who represents you will tell you anything she learns about the buyers that might strengthen your negotiating position, will perform price counseling with the buyers agent that supports your price and will check the contract to make sure that you are protected from any protective buyers clauses. Even as negotiations take place, an agent working for you will continue to market your home in an attempt to receive a competing offer.
The Bottom Line
Listing with an Agent
If you work with an agent
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You sign a listing contract, which is a legally binding agreement that typically gives the agent the exclusive right to sell your property within a certain period of time (usually 60 to 90 days).
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The agent researches the market in order to determine your home's market value and reach a sales price in consultation with you.
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The agent prepares a written marketing plan that includes a schedule for listing, showing, and advertising your property.
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The agent advises you on how best to prepare your home for sale and helps arrange for pre-sale tasks such as a home inspection.
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The agent transmits any offers to you, negotiates the purchase based on your recommendations, and moves all the paperwork through the transaction.
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You pay for the listing agent's services, either as a percentage commission (usually 4 to 6 percent) or a flat fee, as specified in your listing contract. The buyer's agent is paid out of that fee.
For Sale by Owner
If you work alone
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You are in charge of the transaction, including marketing your property, negotiating the purchase, and handling the paperwork. Educate yourself on relevant federal laws and state regulations governing real estate sales.
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You do your own market research (including possibly hiring an appraiser) to determine your home's value.
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You create your own marketing plan and decide how you will handle inquiries from prospective buyers or their agents.
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You decide how to prepare your home for sale, including arranging for pre-sale repairs, inspections, or other necessary services.
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You field all buyer inquiries, show the house yourself, handle all negotiations, and move the paperwork through the transaction.
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You pay for the buyer's agent's services, unless the buyer is also working alone or has hired the agent for a set fee. You may also pay for services you require during the transaction, such as legal advice or help negotiating the contract. Discount brokers offer individual services for flat rates.
Today’s buyers and sellers agree. In 2012, a full 89 percent of buyers used a real estate agent, and so did 88 percent of sellers.
National Association of REALTORS® 2012 Survey of Home Buyers and Sellers.