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%.
One common idea FSBOs have is that they can reduce the price of their home by the commission they would have paid an agent to get it sold faster. But all doing this gets them is less money and more work. They basically have to pay the same cost of an agent without the benefit of having an agent.
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 armature. 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.
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 FSBO homes. There is simply no protection for them OR their clients.
You may also be wondering if you can just sign a contract to show the house to one specific buyer at a time. Since that Realtor would end up working both sides of the deal you can expect them to require more than just the commission of a buyers agent.
One huge mistake is thinking Realtors will show their clients properties that are for sale by owner. The truth is that we are discouraged from that. There are standards of law and practice agents have to follow. An individual owner may not know these laws and standards. This puts us and our clients at risk.
Sadly, some agents make cold calls to FSBOs 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. No questions asked!
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