One of the first questions you may ask yourself when you choose to sell your home is if you should enlist the help of a real estate agent or sell it yourself. Selling your own home is known as For Sale by Owner or FSBO.
Typically, the reason home owners choose to FSBO is to avoid paying commission to an agent when their property sells.
But consider this: Research by HomeGain revealed that home sellers are better able to sell their home using a real estate agent than by selling on their own – by 120 percent! What’s more, the typical FSBO home sold for approximately $65,000 less than a comparable agent-assisted home sale.
Home sellers can expect to pay anywhere between 4%-10% commission, depending on the type of property, current market conditions, and the sellers motivation. Six percent is most common, and this commission is divided amongst the listing agent, the listing agent’s broker, the buyer’s agent and the buyer’s agent’s broker. Many times referral fees and franchise fees are a factor, as well.
Securing a real estate professional and offering a fair commission are beneficial for multiple reasons. A fair commission motivates buyer’s agents to show your home over others, for instance. And although it may seem like a good idea to reduce the commission, it is also important to consider that real estate brokers and agents are responsible for MLS fees, insurance and membership dues. There is also the cost of overhead: computers, office equipment, transportation, signs, advertisement and so on. It’s a business with many expenses and without a weekly paycheck.
Tip #2: Make a great first impression
Ask your real estate agent for suggestions on how to improve the look and ambiance of your home, inside and out, so that you don’t miss out on a potential buyer. Be committed to making improvements and making your home shine. Bob and Teresa will work with you to compile a list of ideas that will get your home sold faster, at the best possible price.