If you’ve ever sold a home, you know it costs money. First, your home may need some updating or repairs to attract more buyers. Second, you have closing costs And then there are all the expenses from moving.
But perhaps the biggest out of pocket expense is paying commission to a real estate agent, which is usually around 6%. The average “For Sale by Owner” (FSBO) home sold for $208,000 last year, so that ends up being $12,500.
When sellers see a big number like it’s no surprise that many decide to try their hand at selling the home on their own to save a few bucks. But are they really saving money?
Save $6,250 or Make $27,000?
A lot of money can be tied up in your home, and for many, a home is their biggest investment. The thought of not paying any commission to a Realtor and pocketing that money seems like a no brainer. But let’s break this down. The problem here is that you’re leaving even more money on the table by selling your home FSBO. How much money are we talking about?
The National Association of Realtors (NAR) says that the average home sold by a Realtor last year fetched $235,000. Now hold the phone… that’s $27,000 more than the average “For Sale By Owner” sold for. Really? A $27,000 difference?
But wait . . . it gets even better! Bypassing an agent and selling your home by yourself doesn’t necessarily mean that a Realtor won’t be involved in the transaction. You’ll still have to pay the buyer’s agent’s commission. After all, they worked their butts off to bring their buyer to your home and negotiated the sale, which of course benefits both sides. The Realtor could just as easily have taken their buyer to the house down the block and sold that, because they were offering to pay the Buyer’s agent. So think again if you’re tempted to just stiff the Buyer’s agent and refuse to pay them. They’ll simply take their clients elsewhere. If they get 3% commission on the sale, that cuts your $12,500 savings in half, leaving just $6,250 leftover.
The numbers really speak for themselves. But let’s dive into a couple reasons why savvy sellers hire a professional.
Power in Numbers
If you want to sell your home, you need as many people as possible toyou’re your home. Your home must be visible where the buyers are. A recent NAR report found that in 2014, 88% of buyers used a Realtor to purchase their home.
Another report showed what the #1 method FSBO sellers used to market their home was. Any guesses? A sign in their front yard. Hmmm.
Last we checked, yard signs can’t “go viral” and don’t show up in Google searches or your News Feed. Not exactly current technology. Be realistic about how many people actually drive by your home each day. Then compare that to an top real estate agent’s pool of potential buyers. There’s no comparison! Not even in the same ballpark.
With a real estate agent, your home will get instant exposure to thousands of potential buyers through the local Multiple Listing Service (MLS). A true pro has a proactive plan for exposing your home to as many buyers as possible and works with you to ensure your home gives a great first impression.
It’s Hard to Put a Price on Experience
No more beating around the bush. Let’s get down to it and be honest with each other. Attempting to sell your home by yourself only guarantees one thing: Mistakes. Lots and lots of mistakes. Some will be minor, but some mistakes can end up being very costly and damaging, and potentially open you up to legal liabilities in certain instances. Do you really want to take that kind of risk with your hard earned money?
FSBO sellers struggle most with paperwork, legal issues, disclosures, pricing, and getting their home ready to sell. Once it’s on the market, the fun really begins. Scheduling showings and coordinating with people to come take a look can be very time consuming. If you’re busy like the rest of us, you may be at work and are not able to answer your phone or let buyers in to see the home when it’s convenient for them. This means that you can lose some buyers just because of scheduling conflicts. An agent will help you with all of that, and more! An agent will advise you based on their years of experience, not emotion.
Here are just a few more ways that hiring a professional makes selling your home easy:
- Advise you on any repairs or updates needed to maximize market value
- Pricing your home correctly based on real-time market data
- Actively marketing your home to a large number of buyers
- Scheduling & coordinating showings with potential buyers
- Negotiating to get you the best possible price on your home
- Handling all the paperwork and legal disclosures required by your state.
Look at it this way: A top-producing agent sold more homes this month than you’ll probably ever sell in your life. That’s what they do! They sell homes. They are real estate professionals with proven track records. Wouldn’t it then make sense that a Realtor can help you realize the most gain with the least pain possible?
Don’t Trip Over Dollars to Save Pennies
Can you save money by selling your home all by yourself? Sure. But you can lose so much more! Do yourself and your family a huge favor and partner with a high-energy, aggressive professional who knows exactly what it takes to get top dollar for your home in the least amount of time. That’s what pro’s do.
The average real estate agent sold less than 12 homes last year. But why settle for average? If you’re considering selling your home, why not hire the best in the area?
Written by Dustin Brohm
- How to Buy and Sell a Home at the Same Time
- The one item needed to sell a home for top dollar by Jeff Gould
- 5 Top Tips for First-Time Home Sellers
- 3 Sacrifices People Make When Hiring a REALTOR® Out Of Obligation To A Friend or Family Member by Andrew Fortune
- HOW TO SELL YOUR HOUSE FAST FOR THE HIGHEST PRICE by Debbie Drummond
About the Author: The above article The #1 Way to Sell Your Home for Top Dollar is provided by Dustin Brohm, a leader in the field of Real Estate sales, marketing, smart home technology, and social media. He is also the host & creator of a new local show called Salt Lake Insider, found on YouTube and Facebook, and HERE on this blog.
Dustin can be reached via email at [email protected] or by phone at 801-455-8753. Dustin has helped many people buy and sell homes in the Salt Lake City area for years.
Thinking of selling your home? I have a real passion for buying and selling Salt Lake City homes, as well as marketing, social media & smart home technology that goes along with it. I’d love to have the chance to use my expertise to help sell your home!
I help people buy and sell real estate in the following Salt Lake area cities & neighborhoods: Holladay, Cottonwood Heights, Millcreek, Olympus Cove, Canyon Rim, Sugarhouse, Midvale, Murray, East Millcreek, Sandy, White City, Draper, Riverton, Daybreak, South Jordan, West Jordan, Herriman, Bluffdale, South Salt Lake, The Avenues, Federal Heights, and of course, Salt Lake City.