Agent Search
With sales commissions skyrocketing, many people are selling their homes without the services of a real estate agent.
You can save a lot of cash. But you can lose money, too, if you don't know the ropes.
Gabby Hyman has written for print and online media for more than 20 years. He has created online content for eToys, GoTo.com, Siebel Systems, Avaya, and Nissan UK. He has also been a web consultant to the Governor of California. As an author of fiction, journalism, and poetry, Gabby is a former English professor for the University of Illinois, University of Alaska, and Old Dominion University. He holds an MFA in fiction writing from the University of Alabama.
Do You Need a Seller's Agent?
In the days before the explosive leaps in property values, people would hardly consider selling their home without the services of a Realtor®. For one thing, prices were steady. Furthermore, real estate agent commissions were not as monumental as they can be today what with houses fetching astronomical prices in many communities. But with a brisk market and hefty Realtor® commissions, an estimated 1 million homeowners a year now choose to sell their homes without the services of a real estate agent. But beware: homeowners who hope to pitch a For Sale by Owner (FSBO) sign on their lawn need to weigh all the factors that go into making a successful sale.
In the days before the explosive leaps in property values, people would hardly consider selling their home without the services of a Realtor®. For one thing, prices were steady. Furthermore, real estate agent commissions were not as monumental as they can be today what with houses fetching astronomical prices in many communities. But with a brisk market and hefty Realtor® commissions, an estimated 1 million homeowners a year now choose to sell their homes without the services of a real estate agent. But beware: homeowners who hope to pitch a For Sale by Owner (FSBO) sign on their lawn need to weigh all the factors that go into making a successful sale.
There's a financial an advantage to the FSBO if the seller has expertise in working with potential buyers to identify key sales points and can
negotiate the all-important closing costs. An agent may prove beneficial to a seller who is uncomfortable with these details or who may not have
strong bargaining tactics.
Selling a home is not the same thing as taping a For Sale sign in the window of an old family car and parking it in a vacant lot. Private party
sellers might be playing make-believe if they simply pushed a FSBO sign into the ground, took out an ad in the local paper, and sat back to wait
for the phone to ring. Although many home sales are indeed made through word-of-mouth, drive-bys, and newspaper listings, there are more effective
ways to get quality bids.
It's essential that private sellers read trends in the local real estate market if they hope to set competitive prices on their homes.
They should also have a firm understanding of pertinent local and state tax laws, title requirements, statutes regarding assessments, disclosures,
and closing points. Local building commission and title offices may assist sellers in evaluating taxes, titles and other commitments. Local Internet
web sites often list FSBOs, local rates, or valuations. Some first-time sellers can learn the ropes using how-to books and manuals from the
library or bookstore.
Whether sellers decide on using a Realtor® may boil down to a time-vs.-money proposition. Realtors® can ensure the proper filing of all required
paperwork, the scheduling of assessments and inspections, and the proper listing and marketing of the property with a Multi Listing Service.
Agents can also help in negotiating the closing costs with the buyer's Realtor®. On the other hand, agents take 4%-8% commissions that owners
may want to keep for purchasing other property or investing elsewhere. Depending on the eventual price of the home, this can amount to a
considerable savings of $10,000 to $25,000, or more.
The owner could attempt many of these tasks if they have the time to learn how to do them efficiently. On the other hand, inexperience can
cost the seller plenty if they're negotiating with a crafty buyer's agent. Another aspect to consider is that sellers may split half of what
they save in sales agent's fees in paying the buyer's agent's commission.
Realtors® can accelerate the process simply because they know how to handle the multilayered governmental and loan bureaucracies.
Saving Money or Creating Headaches?
There's a happy middle ground to consider. Many homeowners hire real estate agents by the hour or by a set project rate to split the tasks on a FSBO,
letting the agents handle listings and closing negotiations.
In finding the right agent, sellers should look for someone that historically leads in closings at their real estate office or someone that arrives
armed with a list of neighborhood properties that they've sold along with a client list of people who will recommend them.
Gabby Hyman has written for print and online media for more than 20 years. He has created online content for eToys, GoTo.com, Siebel Systems, Avaya, and Nissan UK. He has also been a web consultant to the Governor of California. As an author of fiction, journalism, and poetry, Gabby is a former English professor for the University of Illinois, University of Alaska, and Old Dominion University. He holds an MFA in fiction writing from the University of Alabama.