A 3% commission fee seems like a lot of money. All I have to do is stick a sign in my yard and people will come flocking to buy my house, right? Wrong! Selling a house is about so much more than that. And when it comes to the cost, consider this: Homes listed by a real estate agent make 98% of the asking price of a home, versus a For Sale By Owner (FSBO) home makes 92% of the asking price. So you’re getting more bang for your buck with an agent, and doing less work! Also, you may be able to get a lower rate than the current commission rate.
Here are five reasons to hire a listing agent when selling your house:
- The Price is Right – Agents can help you price your home by reviewing recently sold comparable homes nearby. You want to make sure you get this right. Agents can take the emotions out and objectively look at your home and tell you what it’s worth.
- Publicity – Agents can list your home on the MLS, where buyers and their agents can find it. If you’re selling on your own, you can pay a listing agent a one time fee for this service, but you would still be paying for a service a listing agent would normally provide. Remember, the real estate business is a tight community; agents are constantly talking to each other about their needs!
- Buffering and Negotiations – They help you negotiate with potential buyers and respond to multiple offers. Your agent will manage the scheduling of appraisals, inspections, and all the other stuff that goes along with the due diligence.
- Selling quickly – Some sellers decide to start off on their own, and then hire an agent if the home doesn’t sell. But if the goal is to sell quickly, you may be better starting with a professional who can quickly draw traffic to your home (see #3). Even if you don’t need to sell quickly, potential buys may be deterred from buying if your home has been on the market for a while. They also might make lower offers if they know you aren’t paying a seller’s commission.
- Handling volumes of paperwork – Today’s purchase agreements run 10 pages or more. One tiny mistake/omission could land you in court or cost you thousands!
- All. That. Work. – Agents know how to market your home better than you do. They work with the best home stagers, photographers, and videographers. And don’t forget about the marketing they do for you on social media. You will save a lot of your personal time with a realtor!