A lot of agents will not break down what they are offering with their fees of letting them represent you. That is not how I operate. Right below is a break down of my fees and what you get for each commission breakdown.
Pricing is taken from a percentage of the sales price and split between four parties. The Buyer's Agent, Buyer's Broker, Selling Agent, and Selling Broker. Please keep that in mind as you are looking at the price.
The Value of Hiring a Real Estate Agent
Can you sell a home without using a traditional Real Estate Agent?
It is very possible, and it can save you a good chunk of change! I completely understand saving money! That's why I do not commonly call homes that are For Sale by Owner unless I feel I truly can make them more money or help them accomplish their goals. My father-in-law is a major do it yourself individual that accomplishes many tasks that people typically hire out. Including home renovations, bug extermination, and even selling his homes. He didn't use a Realtor for many of his Real Estate Transactions.
So, why do people hire Real Estate Agents to represent them as they do a transaction?
Why not save all of that money?
That is, I feel, an easy answer. It comes down to 3 basic concepts.
A good Real Estate Agent should be very knowledgeable about their market. They should know what homes are listed and be up to date on current statistics on the home market. They should know how to accomplish the paperwork and best negotiations. They should have knowledge of different loans and title issues or know how to find answers to them. They should know how to market and price your property. They should know what improvements and repairs would add value to your home. Their knowledge should help protect you from defaulting on your contracts and opening yourself up to litigation.
Going through the administrative work to sell a home takes a ton of time. Organizing showings at all times of the day, create marketing material and photos, put signs up and get a lock box, sift through offers and create net sheets, coordinate contracts with all parties of the transaction(seller, titles, lenders, inspectors, etc.), and more. A good agent should have systems that accomplish all aspects of your transaction and communicates clearly with you how it is going. Trying to accomplish that while also working your job or taking care of your family can be difficult. Hiring it out will create a smoother and less stressful move.
The most common reason people will not use a Realtor is to save money. Sometimes that can be true, but on average it isn't. Let me break down pricing.
A Seller pays a percentage of their sales price to pay for Real Estate brokerages. Lets say it is a 6% commission. Half of that will be used to entice a buyer's agent to bring their client to look at your home. You will most likely pay that even as a For Sale by Owner because 88% of buyers work with an agent.
So, 3% goes to the selling agent. The selling agent takes the upfront cost of marketing and showing your property. They should pay for professional photos, pay for ads, pay for mailers, pay for internet marketing, pay for signs, pay for lock box. So you'll have to take those upfront costs onto yourself. Let's say that takes 1% so you have that 2% that you save from not using a Realtor. So around $5,000 if your home is priced at $250,000.
Awesome so you saved money! Not really. In 2019, The typical For Sale by Owner home sold for $217,900 compared to $295,000 for agent-assisted home sales.
That's a major difference in price! You could net more than that $5,000 you saved.
As I stated, I definitely have a biased view, but I hope this adds some clarification on why it may be a good idea to use a Realtor. Research it out and check other sites besides this one. You can get the views from both sides so you can make a more clear decision. I understand saving money and if selling on your own is how you accomplish that goal, then I highly encourage you to do it!
Check out my other Services
Buyer's wants and needs quiz, ideas on marketing, and more.