In this market, I see many people that try to sell their homes themselves. If you ask them why, most of them are doing so to “save 6%” (i.e. the real estate agents commission).
Unless you are a professional negotiator (not just someone who “wont budge on your price”), you need to be real with yourself and know that you are probably not the best person to negotiate the sale of (what is most likely) your most valued asset. One of the saddest things that I see people do (not just in real estate), is to spend (or lose) money in an effort to save money. I am not opposed to being frugal, but as a real estate professional, let me give you some food for thought.
Let’s say you want to sell your home for $400,000 and keep all of the net proceeds. All other fees aside, you are seeking to net an additional $24,000 by not listing your home with a professional real estate agent. Would you be surprised to know that a real estate agent could possibly get an additional 10% of your asking price (I have seen as much as 25-30% above asking price) due to his or her ability to attract several contracts, choosing not only the highest priced offer, but the best terms for you resulting in an increased bottom line.
In our example of a $400,000 sale price, let say that your agent not only gets a higher price (conservatively, 7% above your asking price), but also does it for only 4% since they will be assisting you with the purchase of your new home. This nets you an additional 3% or $12,000. The best way to look at using an agent, is to look at netting an additional 3%, rather than losing 6%. Now, the key is that you have to work with an agent that will work with you. Many of the larger firms, do not allow their agents to be “flexible” and I don’t recommend working with an agent that can’t (or won’t) work on your terms. Some of you may not know this, but prior to being a mortgage loan officer, I spent several years (1992 – 1995) working as a real estate agent and I maintain an active real estate license to keep current with that side of the business.
If you have any questions related to selling your home (or purchasing a new one), feel free to contact me at 800-453-9290 0r anthony@anthonykirlew.com and I will help you find an agent to assist you.
Until Next Time...
Anthony
