Once in a while you have heard people talking about how they have saved money by selling their house without a real estate agent. Hold on a second. Have you ever pondered that selling houses without an agent can cost more than the commission saved? Being adept at marketing, knowing the roots of sale and properly valuing a house is a real estate agent all about. It is generally perceived that real estate agents are highly paid but they forgot that they manage the maximum cost to the seller through their experience over the years. So brace yourself to know why you really need a real estate agent?
Firstly, is the misconception of saving money by not paying the commission. However, opting this path will eliminate all the potential buyer who vice versa works closely with real estate agents. In reality, this decreases the selling price of your house by devaluing it. On the other hand, if you hired a cooperating broker you will save only half of the commission.
Elaborating it, it is really vital to judge the right value of your house. It’s going to cost you a lot either if you have overvalue or devalue the cost of your house. Remember majority buyers are waiting for the sale of their ideal home. This has been also shown by statistic where real estate agent was able to sell at a higher price than the one where owners of the house sold it.
In most cases, sellers overvalue their house by raising its overall price. This resulted in a situation where weeks and months passes away without attracting any potential buyer. In addition, any house that sits on the market for longer span lost the actual value of it even if they decrease the price later. Similarly, if there was a loan on the house, it will still cost you more money than expected.
Likewise, selling a house less than its worth can even cost you more money. At low price, it’s true there will be lots of buyers, but a multiple offer situation can arise where some buyers will back out due to bidding chaos. Moreover, you might get an offer over asking price leading to a situation where you ponder that you could have asked more.
This shows that pricing a home without a real estate agent can be really challenging as you do not have enough experience to perfectly value it. On the other hand, a real estate agent has access to MLS unlike common people. This gives a general idea about the value of the house as it shows the trend of recently sold properties. But remember, it takes years to analyze and understood the real estate market and only real estate agents can perform this job well.
Furthermore, there is a possibility that your buyer needs an appraisal done as he is getting a loan. This can lead to a situation where at low appraisal the price of home needs to be lowered down too. In this case you do not know how to deal with it. Only a real estate agent knows how to challenge and solve this appraisal if it’s come low.
Living in this 21st century, you need a dynamic marketing plan to sell your house. You cannot put your home in the MLS and expect the best. Only the real estate agent knows how to market it, create the best brochures, what website to use, which newspaper and magazine to use as they know not only the business but also people related to the field of real estate.
Moreover, you should be aware not to fall for low fee MLS service which many companies offer. From putting incorrect information to paying the buyer’s agent if you enter a home in the MLS is all about double dealing. All in all, everywhere you will be at disadvantage for not having a real estate agent to help you with stuff like contracts, appraisals, negotiations, inspections etc.
Believe it or not, only the real estate agent knows how to deal with contracts. They have the idea of what really buyers and sellers have to pay in accord with government rules by looking at state contract. They know about different cost which is conventional to pay in the real estate market on behalf of the buyer and seller. Now think what will you do without any guidance when you can easily end up paying more?
Aggregating it, just like any other market, real estate agents are experts in this field working not only for profit sellers, but buyers too through the implication of different strategies and tactics. They know about title companies, other agents and lenders. So it’s better to sell your house by paying commission to real estate agents. In a nutshell, it is not worth your time to understand the trends and fluctuations in the real estate market so hire a real estate agent if you actually care about saving money.
NYS Licensed Real Etsate Agent