6 Reasons You’ll Be Glad You Hired a Realtor to Sell Your House
When they sell a car, many people try to peddle the vehicle on their own rather than trade it in. They’ll get more for it if they do the latter, though, and it’s a fairly easy process.
Property transactions are more complex. If you’re getting ready to sell an investment property, your residence, or other land, you can try to sell it yourself or hire a Realtor. Most people understand this is a more complex transfer, so they use a Realtor.
When you hire a Realtor, there are fees involved. Typically, you’ll pay 6 percent of the sale of the home in Realtor’s commissions, since the seller typically pays for the buyers’ Realtor as well. You might owe other brokerage fees, as well.
Selling your property as “for sale by owner” (FSBO) might appear simple, especially if you’ve been through the process before, and in theory it will save you tens of thousands of dollars on the final price.
However, you may discover that selling a home is harder than it looks, and you’ll wish you hired a Realtor. Here are a few reasons that hiring a realtor at the start is a better idea.
1. He or she will watch the market for you
“The market is shifting every day. It’s the agent’s job to keep abreast of those changes,” Ryan Fitzpatrick, sales director for a New York brokerage told Money.com.
You can gather some information about buying and selling in your area, but without years of experience, it’s hard to perceive noticeable shifts and trends that dictate when and at what price you ought to sell a property.
Realtors also have access to economic resources you don’t. For example, they may consult the multiple listing service (MLS), which shows all the property transactions ever made in a given neighborhood.
It can come up with price recommendations and other data useful for your property transaction.
2. You’ll probably get more out of the property
If you don’t believe this is true, a 2017 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) says, “FSBOs typically sell for less than the selling price of other homes.”
The study indicates they sell a whopping 30 percent less than homes listed by an agent. If you’re selling at the national average, that’s a difference of about $60k, way more than you would have lost if you sold with a Realtor.
Plus, you’ll probably sell it faster. This isn’t true in every case, of course, but the risks of selling a home well below its value are far greater when you take the FSBO approach.
3. Realtors have more marketing resources than you do
At best, your marketing approach would likely consist of a sign in your yard, word of mouth, social media, Craigslist, and maybe a newspaper ad. It’s true that these marketing tools are effective, but they’re only a fraction of what your Realtor can do.
A good Realtor has plenty of practice and experience in marketing properties as well as unique resources. He or she can host open houses for both buyers and real estate agents. They also have the brand name of the broker behind them, which can mean a lot to homebuyers seeking a secure deal.
4. You’ll get expert advice and negotiating skills
When you get an offer on a home, it’s not necessarily easy to know whether you should accept it or negotiate. Your Realtor will have experience and instincts to help you make these difficult decisions. You can ask all your questions, and they can guide you in the right direction to get your home sold for the right price.
You, of course, have the final say in all negotiations. Your Realtor will respect what you wish to do, but that person is there to offer help if and when you need it.
5. Even if you do FSBO, you might still have to pay the buyer’s realtor commission.
About 43 percent of FSBO homes are listed that way because the seller doesn’t want to pay the Realtor’s commission. This sounds reasonable and may lead to greater profits, but the sum may not be as large as the person expects, since the buyer might be represented by a Realtor.
In that case, the seller could still be on the hook for those commissions. In reality, saving 3 percent on the sale of the house usually isn’t enough incentive to do an FSBO sale.
As stated previously, the odds are you won’t sell your home for as much in an FSBO contract, and the eventual profit won’t make up for the 3 percent you’re potentially saving by not hiring a Realtor.
6. It gives you peace of mind and time to spare
Wouldn’t it be nice to let someone else take on the weight of the work, when you have so much on your plate already? You know your property is in good hands and will likely sell for more because you hired an agent. Best of all, you barely have to do anything to facilitate the sale.
This only works, of course, if you hire a great Realtor or brokerage to sell your house. Research your options carefully, because a bad agent can give poor advice and keep the house sitting on the market far longer than it needs to!
In the majority of cases, however, it’s more financially prudent to sell your home with the help of an experienced Realtor. This removes pressure from your day and enables you to sell the home with less stress.