Use a Realtor to sell your house because:
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These are tough times to have a home for sale. There is an overabundance of new construction, foreclosures and a very
tight credit market out there. There is a strategy many employ to save a little money in commissions that tends to cost more
in the long run. For sale by owner, or FSBO, is a growing trend whereby homeowners take on the marketing, showing, and
selling of their real estate on their own, without the assistance of a real estate agent. What many homeowners ignore are
the hidden costs of this method of selling real estate that eventually cause any savings from commissions to be lost.
Multi-Listing Service (MLS)
Realtors belong to a national housing database known as the multi-listing service, or MLS. This database contains all
homes listed with a realtor across the country. Each property is assigned an MLS number at time of listing and can be
referenced by anyone with access to the system. Think of it as the ISBN for books; MLS numbers make properties easy to
find in the national network of properties for sale, similar to how ISBNs make it easy to find a book in the sea of offerings at
places like Amazon.com. The right to be a part of this service is worth the commission alone, but there are a couple other
things to consider when opting not using the services of a real estate agent.
For Sale by Owner = Lower Offer
When the average potential homebuyer sees an FSBO sign in the front yard they immediately think, "Aha! I've found a
bargain!" That's because the buyer knows the seller is saving money on agent commissions, so perhaps he can pass
those savings along to them. Even if the seller has little negotiating room on the price the perception is they can be talked
down because they are saving on commissions. This knowledge gives the buyer leverage in price negotiations.
You're No Marketing Expert
Let's face it, the Marketing 101 course you took fifteen years ago doesn't help much in today's age. Sure, some of the basic
principles of promotion are the same, but so much has changed in terms of technology that few outside of real estate are
up to speed. That is another reason for hiring a high-octane real estate agent. These folks eat, sleep and breathe real
estate. They have contacts with buying agents that can easily match prospective buyers with eager sellers. They have
mastered the art of hosting an "Open House." They are good salespeople, able to field objections and act on them in an
objective, professional manner. This is an often overlooked advantage to hiring an agent. During a walk through with a
homeowner many potential homebuyers are reluctant to point out problems because they don't want to knock the house in
front of its owners. Without those objections being made they cannot be addressed, and in many cases the sale is simply
lost. People tend to be more honest with a real estate agent because they represent an objective third-party, with no reason
to take offense if the buyer doesn't like the home's color scheme.
It Just Takes Longer
With no exposure to MLS and a network of real estate agents, homes listed as for sale by owner tend to sit longer. Unless
the house is paid for that means you still have a mortgage payment due each month. It also means more months of
keeping up the landscaping, and keeping that power meter running to make the house "show-friendly." If you factor in the
additional costs, paying a few percentage points from the sale price towards a real estate agent's commission may look
like a bargain!
tight credit market out there. There is a strategy many employ to save a little money in commissions that tends to cost more
in the long run. For sale by owner, or FSBO, is a growing trend whereby homeowners take on the marketing, showing, and
selling of their real estate on their own, without the assistance of a real estate agent. What many homeowners ignore are
the hidden costs of this method of selling real estate that eventually cause any savings from commissions to be lost.
Multi-Listing Service (MLS)
Realtors belong to a national housing database known as the multi-listing service, or MLS. This database contains all
homes listed with a realtor across the country. Each property is assigned an MLS number at time of listing and can be
referenced by anyone with access to the system. Think of it as the ISBN for books; MLS numbers make properties easy to
find in the national network of properties for sale, similar to how ISBNs make it easy to find a book in the sea of offerings at
places like Amazon.com. The right to be a part of this service is worth the commission alone, but there are a couple other
things to consider when opting not using the services of a real estate agent.
For Sale by Owner = Lower Offer
When the average potential homebuyer sees an FSBO sign in the front yard they immediately think, "Aha! I've found a
bargain!" That's because the buyer knows the seller is saving money on agent commissions, so perhaps he can pass
those savings along to them. Even if the seller has little negotiating room on the price the perception is they can be talked
down because they are saving on commissions. This knowledge gives the buyer leverage in price negotiations.
You're No Marketing Expert
Let's face it, the Marketing 101 course you took fifteen years ago doesn't help much in today's age. Sure, some of the basic
principles of promotion are the same, but so much has changed in terms of technology that few outside of real estate are
up to speed. That is another reason for hiring a high-octane real estate agent. These folks eat, sleep and breathe real
estate. They have contacts with buying agents that can easily match prospective buyers with eager sellers. They have
mastered the art of hosting an "Open House." They are good salespeople, able to field objections and act on them in an
objective, professional manner. This is an often overlooked advantage to hiring an agent. During a walk through with a
homeowner many potential homebuyers are reluctant to point out problems because they don't want to knock the house in
front of its owners. Without those objections being made they cannot be addressed, and in many cases the sale is simply
lost. People tend to be more honest with a real estate agent because they represent an objective third-party, with no reason
to take offense if the buyer doesn't like the home's color scheme.
It Just Takes Longer
With no exposure to MLS and a network of real estate agents, homes listed as for sale by owner tend to sit longer. Unless
the house is paid for that means you still have a mortgage payment due each month. It also means more months of
keeping up the landscaping, and keeping that power meter running to make the house "show-friendly." If you factor in the
additional costs, paying a few percentage points from the sale price towards a real estate agent's commission may look
like a bargain!
Trying To Save On The Cost Of Realtor Commissions Could End Up Costing You Thousands
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