Our three kids have flown the nest and a season of change is upon us. The four bedroom rental we’ve been in for the last five years is just too large now. Decisions have to be made. Are we going to rent a smaller house or take the leap and finally buy a “forever” home? After much consideration, we’ve decided renting is no longer a good option for us and that buying a smaller house is the right move. It’s a huge milestone for us!
Are you planning to put your home on the market this year? If so, the thought of saving money using a realtor, or possibly not using a realtor, has probably crossed your mind. Having worked in the real estate industry for over fifteen years, I can tell you that listing your home “FOR SALE BY OWNER” or FSBO is most likely not in your best interest.
Yes, if you use a realtor to sell your home, you will have to pay a commission. Now comes the tricky part; the customary six percent commission is not etched in stone anywhere. Many real estate agents will negotiate a lower commission, if you just ask. One thing you need to realize is in most real estate transactions there are two realtors involved, the listing agent and the selling agent. Each one of the realtors is expecting to get paid for their work.
Let’s take a look at a few things the listing agent will do prior to a contract even being placed on the property:
· Meet with sellers prior to listing the property to advise them what needs to be done to get their property in tip top condition for selling
· Spend time comparing recent sales in the area to give the sellers a realistic idea of how much they can anticipate selling their property for
· Meet with the sellers again to sign the listing paperwork and take photos of the property
· Enter the listing into the local Multiple Listing Service (MLS)
· Prepare online and print advertising of the property in order to give it the greatest exposure
· Potentially show the property to buyers who call the number on the sign in the yard
These are just a few things a listing agent will do before a contract is placed on the property. All of these take time and, as such, it is not unreasonable for the listing agent to expect to be paid. One thing sellers don’t think about is that listing agents do all of this and more, spending money out of their own pockets, in anticipation of possibly receiving a commission IF THE PROPERTY SELLS. If the property does not sell, or if the sellers decide to change listing agents, the original agent is out any time and money already expended.
The price to list a home is always negotiable, and you should negotiate. However, remember that the listing agent has an incentive to sell your home. The realtor would eventually like to get paid. Keep this in mind: realtors are around buyers on a daily basis. This is their career. Yes, you can place a FSBO sign in your yard, but how many buyers are you going to be around on a daily basis? Do you have the time to answer phone calls, show the property, and assist potential buyers with financing?
Think about it and let us know what you think about listing agents. Will you save money using a realtor? I think you will. After all, time is money and my time and yours is precious.
Topic: Save Money using a Realtor