Why You Shouldn’t Go It Alone When Selling Your House
With inflation on the rise and mortgage interest rates up, people are looking to save money wherever they can. If you’re thinking about selling your home and are considering the “for sale by owner” (FSBO) route, reconsider. Here are five reasons working with a Realtor can actually save you money…even with the commission:
For Sale by Owner Is Falling to the Wayside
On the surface, the appeal of a FSBO is obvious. You’re guaranteed to save the 3 percent seller’s agent commission. If you sell to an unrepresented buyer, you could even save the full 6 percent.
Say you’re looking to sell your home for $500,000. That’s a savings of anywhere from $15,000 to $30,000.
So, why have FSBO numbers been steadily dropping since 1985?
It’s because real estate deals are complicated. Getting top dollar for your home requires industry knowledge, local knowledge, specific skills, and years of experience. This is exactly what a real estate agent provides throughout the home-selling process.
5 Ways a Realtor Can Save You Money—Even with the Commission
1. Invest in the Right Improvements
Experienced real estate agents have helped enough people purchase and sell homes to know what matters to potential home buyers.
When you’re going it alone, you have to guess what improvements are going to yield the most return on your investment. Does that mean giving the kitchen a face-lift? Or renovating that bathroom?
If you don’t have a professional at your side, you could make lots of costly mistakes here.
Market trends are especially important right now. Kitchens used to be a slam dunk for helping your home show well. In today’s market, where inventory is historically low, you can get away with doing less.
According to a survey conducted by Freddie Mac, roughly two out of every five buyers would still consider purchasing a home in need of renovations.
Rather than relying on general research, though, Realtors can key you into this kind of insight and reveal what’s holding true for your specific market.
2. Maximize Your Potential Buyers
Yes, the National Association of Realtors (NAR) found the average home sale logged 4.8 offers. Does this mean any home you put up is going to automatically sell no matter what you do? Of course not.
To get those multiple offers that drive your home price up, you still need to maximize how many people are exposed to and learn about your home sale.
A Realtor will use many channels to list and to promote your property. This includes the following:
- An extensive list of contacts, including people who are already looking for a home like yours.
- Social media followings.
- Resources from parent agencies, such as REMAX or others.
- The MLS (multiple listing service).
Listing a home in the MLS is one of the best ways to ensure lots of people get exposure to your home, but only licensed Realtors can list here. (There are flat-fee MLS providers who can list on your behalf, but you’ll have to pay for this service.)
Being in the MLS opens up more opportunities for potential buyers to see your home, but it also puts it on the radar of other local agents. These Realtors might have clients who have just been waiting for something like your home to hit the market!
3. Don’t Get Stung by the Fine Print
Selling a home is complicated. It’s a legal and binding process that involves a laundry list of mandatory disclosures and regulations.
If you don’t know what you’re doing, you could easily misfile (or neglect to file) all the necessary paperwork that’s involved in this process.
Realtors know what to file, when to file it, and the implications of every form. A mistake here could mean a big financial hit.
4. Lean on Your Realtor’s Negotiation Skills
Selling your home by yourself means you’re responsible for every aspect of that sale. This includes the entire negotiation process.
Think about this from a financial and time perspective.
If you don’t have a trained negotiator in your corner, you’ll have to navigate contractual agreements with all these parties:
- Buyers, who are angling for the best possible price.
- The buyers’ agent, who is actively advocating for them.
- Professionals in the home-buying process, including the inspection company and the appraiser.
A seller’s real estate agent will know what concessions will make all parties happy. (This includes you.)
A professional Realtor will also know when something is outside the norm and a second opinion should be sought. For example, if an appraiser determines an abnormally low value for the home, the seller’s Realtor can recognize this and put a plan in place to fix the situation.
5. Set the Best Price for Your House
Arguably one of the most difficult tasks in the home-selling process is pricing your house.
Set the asking price too low, and you could minimize your profits. Set it too high, and you could limit your pool of buyers, scaring off people who might have engaged in a bidding war if more invested. An overambitious asking price can also cause your home to sit on the market. This hurts you in carrying costs (mortgage, property taxes, utilities) and perception (people assume something must be wrong if it didn’t sell right away).
Successfully pricing a home is a complicated combination of all these factors:
- Current knowledge of the area and what people are getting.
- Analysis of comparable homes that have recently sold.
- Assessment of your home type, its condition, its unique selling points, and potential drawbacks.
Relying on the expertise of your real estate agent to get this price right helps ensure your home goes quickly and for as much over asking as possible.
Reach Out to a Local Realtor Today
A lot of a real estate agent’s work is done behind the scenes. In fact, that’s the sign of a good Realtor. You aren’t even aware of everything that’s been done because it was taken care of seamlessly, on time, and without issue.
Are you interested in having an expert in your corner throughout the home-selling process? Are you ready to work with someone who will offer more value than any 3 percent commission?
Then reach out today. We’d love to talk and help you discover real estate as it should be!
