Now, one very controversial topic is selling a home without a realtor. Why is it controversial? Well, the real estate agent will argue that it’s one of the worst things you can do because they bring their negotiating skills to the table. Secondly, an agent will help to market the home. Someone can sell it themselves and put it online, but consider that the real estate agent has a network of other agents with the ability to market for them. If more people see the home, the hope is to generate higher interest in the property. Finally, the home price may go up due to what’s called a bidding war because of people who would be willing to pay more for it. Agents provide an excellent service; however, some sellers would prefer to avoid paying commissions to the realtor altogether.
When someone hires a real estate agent, there is a commission fee for the real estate agent to sell the home. Many people try to forgo paying a commission. By listing their house for sale by the owner, they’re doing the negotiating and marketing. A licensed real estate agent is not representing them, so they must figure out legalities by themselves. It can be done. I’ve seen it successfully done many times, but by trying to cut out from a commission to the east realtor, they have to do that work themselves. Some people are not willing to do all that work themselves. When selling a home and listing with an agent, someone can expect to pay commissions to the agent that sells the house.
Therefore, when people list “sale by owner,” they’re under the impression that they won’t have to pay commissions at all, but that’s not correct. Sellers are often expected to pay a commission to the buying agent because real estate agents represent most buyers in the market. For example, suppose a real estate agent finds a property for sale and brings that property to their buyer. In that case, they’re typically expecting a commission. So even if the seller decides on “selling for sale by owner,” you may still have to pay a commission to the buyer’s agent anyway.
At the end of the day, do what works for you. Whether it’s with or without a realtor, learn to be very careful and understand what you’re getting into.
Contributor: @MichaelPomes
Pablo’s wisdom: A seller’s market
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