Before you use a Realtor to sell your property you are probably going to want a few concerns addressed.
I don’t want to pay the commission.
Considering homes sold by an agent typically sell for 12% higher than by owner that 6% becomes an EXTRA 6% in YOUR pocket. So it may actually be a better idea to invest in having a Realtor list your home. The last thing you want to do is save 6% at the cost of losing 12%.
The reason people will look for homes for sale by owner is because it gives them the impression that the home is being sold by an amateur. That means they have more of a chance to get a lower price than the home is worth. So most of the offers you get will likely be from people who think they can low ball you.
Plus, having a Realtor increases your chances at having multiple buyers bidding on the property. More buyers mean more competition, more competition means higher bids.
Why can’t I just pay a commission if an agent brings me a buyer and save on the listing agent?
Without a listing agreement the seller could contact the buyer and attempt to persuade the buyer not to use their Realtor. This is one reason Realtors are discouraged from showing homes of For Sale By Owners. There is simply no protection for them OR their clients.
Also consider the fact that when I market your home I’m attracting SPECIFIC buyers interested in YOUR property. When I’m marketing myself as a buyers agent I’m attracting random buyers with NO SPECIFIC interest in your property. And, at most a buyers agent can really only effectively work with 5 buyers at a time.
Having a limited number of buyers who aren’t necessarily looking for your type of property means a Realtor may show hundreds of homes. But your home probably won’t be one of them because these specific buyers aren’t looking for your type of home.
It’s better for both parties to list and market the home to actual, interested buyers. A listing agreement is what gives permission to do that.
Sadly, some agents make cold calls to For Sale By Owners looking for listings and give a false impression that they will keep that home in mind if they find a buyer. This is often because the seller asks them to just bring a buyer and the inexperienced agent doesn’t know what to say other than to agree and move on. In reality they will most likely forget all about the home.
I don’t want to be stuck in a contract.
The listing agreement doesn’t have to be a prison! As an agent it is my personal policy to NEVER hold someone in a listing agreement when they want out. I’d rather have a happy past client than an angry current client. I don’t mind including a cancellation agreement in the listing agreement for that reason! If you want to cancel it then we will cancel it.
I’m already getting offers. Why would I want a Realtor?
The job of a Realtor isn’t just to market your property. A Realtor should also screen any potential buyer to make sure you don’t accept an offer that is likely to fall through during the escrow process. Remember, just because you are getting offers it doesn’t mean they are good offers.
May 15, 2020 at 6:33 pm | Uncategorized | No comment