When it comes to selling your home, it is the commission fees that most affect your bottom line. The hot debate is whether or not you really need a real estate agent. Certainly their current commission rates of 6% to 8% can quickly translate to thousands of dollars out of your pocket. Simply consider with the current medium home price of over $200,000, you will be paying out approximately $15,000 to your agent. That is certainly nothing to sneeze at.
Given these numbers, everyone should do some serious research on all their options for selling a home. Unfortunately there isn’t any set system; it is all about weighing time against money. A good agent should sell your home faster and more efficiently, plus save you tons of time in the process. Going completely without an agent and selling your home yourself will save you money but also take tons of time.
Some things to consider:
A full-priced, good quality agent will usually cost you the full 6% to 8%. If you find a truly high quality one, it may actually be worth the cost. The agent should sell your home quickly for top dollar and eliminate all your headaches. Given this scenario, you are truly paying the maximum for a specialized service.
Now, not everyone has or wants to pay top dollar. Some simply want the cash in their pockets instead. For those, there are three main options.
1. Hire a reduced rate agent. These are popping up all over my neighborhood and in many big cities. The slogan “1% to Sell” is common. In this scenario you are paying a dramatically reduced commission rate to be listed on the RMLS, have the realtor’s sign in your yard, and the legal expertise of the agent. Often, the selling time is slower, as these agents make up their bottom line by listing numerous houses at one time. Limiting their ability to provide you a quality service.
2. Sell your home yourself. For Sale by Owner is a growing marketplace. While this option will certainly save you money, it does require plenty of time on your part. The toughest part is helping potential buyers find your home and being available to show it. If you work long hours or are away often, this may not be a good option for you.
3. The last option is kind of a mix between the two above. It is also one that many people either don’t consider or don’t know about. Basically you sell your home yourself, but pay a fee to a realtor to get on the RMLS. Many real estate agents will negotiate a flat rate to place your house officially on the real estate market; some will even let you borrow their sign. This will allow you to sell the home yourself, but provide some of the valuable marketing tools that agents have to help advertise your home.
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