Is it worth it to pay a Realtor?
One of the biggest – and most often cited – expenses related to selling a home is the commission paid to professional real estate brokers. There is a perpetual debate over the value of services provided by real estate sales professionals. In
real estate marketing campaigns this controversy is sometimes confronted head-on by those agents who are courting you for your business. After all, getting “listings” (contracts to sell properties for a commission) is the bread and butter of the real estate sales profession.
In this article we’ll examine the underlying factors that come into play when a house is sold with – or without – a real estate salesperson, so that you can make your own informed decisions about the subject. After all, it’s your money, your property, and your choice.
Selling your house by yourself, or “for sale by owner” (people in the real estate industry use the slang acronym “fisbo”) is worthy of consideration, and can save you five percent or more of your sales price. To sell your house, you will need to advertise, and these days you can include your property in the
Realtor database or Multiple Listing Service for a fixed fee, which will give you access to the greatest number of potential buyers and will ensure that everyone in the real estate business knows your property is on the market. But many brokers are hesitant to show houses to clients unless they can expect to be paid for their efforts, and for that reason it is a reasonable and common practice to offer at least a 3 % commission to those who find you a buyer and help to close the sale. So even as a “fisbo”, you may have expenses of 4% in order to find and secure buyers in a competitive market.
For buyers to view your house, someone has to show it to them. Normally the
Realtor coordinates this, but if you sell your house yourself, you will have to take calls and e-mails, set appointments, and conduct tours of your home for prospective buyers.
You have to negotiate with those who want to see your house on short notice, while you are at work, or at other times when it’s convenient for them but inconvenient for you. You also must be prepared to screen buyers to assure that they are qualified for purchasing a home in your price range. After finding interested buyers, you negotiate the price, through offers and counter-offers. If they want to sign a contract, you should have attorney-approved contracts available, but you will also want to ensure that they have adequate financing, which can involve running credit reports or meeting with mortgage lenders. Many “fisbos” find these logistics not only inconvenient but also stressful.
But the real stress usually comes after the contracts are signed, and the push for a quick and efficient closing begins. Sellers have an emotional attachment to their home and the hard work and investment they have put into it. Buyers are emotionally charged because they are making the biggest financial decision of a lifetime. For four to six weeks, there is a potentially strained series of ongoing but separate miniature “tug of war” procedures, as the buyer and seller compete with each other to get the best deal possible, while trying to maintain businesslike emotional composure.
You will negotiate the dates for completion of inspections, loan approval, and closing. There may be a lien on the property you didn’t know about, or an issue with an easement that could become a deal-killer. You might need an extra weekend to pack and move, but have to get written permission from the buyer. Without quick and professional resolution of these types of problems, you could lose the sale or even end up in court for violation of a contract.
For these reasons, the most overlooked, underrated, and valuable justification for hiring a broker is that it gives you the opportunity to negotiate through a professional, experienced, and emotionally objective third party who has your best interest in mind.
Because the
real estate sales person will be negotiating on your behalf, it is essential that you hire someone you can trust, communicate with, and rely upon. Many sellers feel most confident when they are able to choose a broker from their own community who understands their needs.
The decision to hire a broker or go it alone as a “fisbo” is a complicated and important one, and there are many variables to take into consideration. But if you hire a skillful mediator and negotiator to help you sell your house, you will probably get your money’s worth, and may save enough money while making enough money to cover all or part of the sales commission.
If I can be of any assistance to you when buying or selling your home feel free to contact me
mailto:dawng@kw.com. My name is Dawn Grabover and I am with Keller Williams Realty. I service the Northern Fairfield County area with a focus on Danbury, Ridgefield and the beautiful Candlewood Lake Region.
Thanks for reading!!
