Reasons to Use a Real Estate Agent Over For Sale by Owner
In this guide, we will cover the reasons to use a real estate agent over for sale by owner. There are many reasons to use a real estate agents over for sale by owner. Wanting to sell your house with a reasonable time on the market is one of the reasons to use a real estate agent over for sale by owner. People are always looking for ways of saving money. This holds especially now during times of a downturn of our economy with high inflation, high home prices, and historic high rates. Home sellers pay realtors a 6% commission after the sale of the home. 6% of a $200,000 home is $12,000, which is no chump change. Lauren Wright, President of The Wright Realtor, a five-star real estate agent representing homebuyers and sellers in the Chicagoland area and an associate contributing editor of GCA FORUMS explains how the real estate commission structure works among buyer’s and seller’s realtors as follows:
The listing agents real estate commission is then split in half with the buyer’s agent. Most homebuyers believe not using a real estate agent will get them a better deal, including the winning bid on their home purchase.
The reason homebuyers are under the impression of not using a real estate agent will get them the winning bid and a better deal on the house is because they only deal with the listing realtor. The listing real estate agent will be more prone to favor the buyer without an agent because the listing agent gets all the commission. The key question is trying to market the home without using a real estate agent to save money trying to sell the home by owner. Will this be a benefit for home sellers? The answer is it depends. This article will cover the reasons to use a real estate agent to buy or sell your home.
Reasons to Use a Real Estate Agent VS FSBO in the Current Housing Market
When the real estate market is hot, homes are selling the minute home hits the marketplace. Many sellers who list their homes in a seller’s market often see multiple offers. They eventually get a purchase contract over their list price. However, in a buyer’s market, inventory exceeds demand. Homes can sit in the marketplace for months, sometimes over a year, in a sluggish housing market with a surplus inventory. Realtors will be the savior in selling the home for the right price and in the quickest amount of time. Click here to get real estate agent
Reasons to Use a Real Estate Agent vs FSBO to Market Your Home
Homeowners intending to market homes themselves need to be marketing savvy. Photos and videos are key. Many home buyers will pass over listings without photos or photos that are not clear. Realtors can help with marketing. Real estate agents hire professional photographers, videographers, staging companies to take photos and create virtual tour video of the home. Signage should be posted in front of the house where the contact information is large enough and visible. Realtors will design and implement user friendly call-to-action (CTA) features that trigger viewers to contact the agent. Other reasons to use a real estate agent is experienced realtors have a database of homebuyers and other agents searching for like properties like yours. Networking with other realtors are huge reasons to use a real estate agent over for sale by owner.
Other Reasons to Use a Real Estate Agent vs FSBO
Listing your home with a realtor is highly recommended due to various key benefits. Professional real estate agents will also post their website and links to a virtual tour of the subject property on the signage. Expert realtors will also have a box on the signage with marketing materials. It consists of color photos and selling points of the home. Realtors will most likely offer open houses for the property. Invitations to open houses are normally advertised beforehand via newspaper ads, mass emails, and other marketing techniques.
Benefit of Listing Their Home With Realtors
Granted, paying 6% of the sales price for realtors is a lot of money. Home sellers need to realize the benefits of selling their home using a real estate agent. Realtors will advise sellers on comparable sales that recently sold in the area. Realtors do not get paid unless the home is sold.
They do not want to waste time showing the property to unqualified homebuyers. Real estate agents normally do not show the property to homebuyers that do not have a solid pre-approval letter.
Some realtors will contact the buyer’s lender and question them on how solid the potential home buyer is. The bottom line, one of the top reasons to use a real estate agent vs selling for sale by owner is time. Time is money. The 6% commission to the listing real estate agent is well worth the cost of selling your home. Would you like to sell your home is two months or six to twelve months? The real estate’s experience in marketing, expertise, advise, consultation, and networking strategies is well worth the cost of selling your home. Click here to get an help about your mortgage
Pricing The Home Right Are Reasons to Use a Real Estate Agent
Realtors will help price homes where the deal will go through. Pricing homes too high might backfire and will result in questioning potential buyers. For example, if the home is only worth $200,000, sellers price it at $250,000, potential buyers may not even contact you to inquire further about your home. Once the house is listed, the listing price will be public record and you cannot delete it. Dino Hasapis, an Illinois licensed real estate with Compass Realty in Chicago and an associate contributing editor at GCA FORUMS advises the following:
Sellers may get lucky and get a buyer willing to pay $250,000, the chances of the deal going through is not good. This is because the appraised value will only be $200,000. It is possible only when sellers have a cash buyer without a mortgage which doesn’t happen often.
For example, if you list your house for $250,000 and realize that you overpriced the house and lower it, it looks bad and suspicious to the potential buyers. The viewer of the FSBO ad may wonder why did this house get $250,000 to $240,000, to $220,000, to $200,000? Another negative result with overpricing a home and lowering is it prolongs the time on the market. Long time on market is another negative factor that can result in blacklisting your house. For example, a house on the market for six months or longer will raise a lot of questions and suspicions from buyers. Long time on the housing market has a negative impact on getting your home under contract.
Pros and Cons on Reasons to Use a Real Estate Agent
There are pros and cons to selling the home by owner. Realtors use Multiple Listing Services (MLS). Sellers who are marketing gurus familiar with real estate can try marketing homes themselves. Realtors are professionals who will go above and beyond for their clients to get them top dollar for their homes. Pricing the home right is an art. For home sellers in need of selling homes as quickly and cannot devote time to marketing, hiring an experienced, aggressive, knowledgeable real estate agent is strongly recommended. Listing agents do not get paid unless the home sells. The listing agent will bear the marketing cost, such as open houses and home staging, to sell the home sooner.
The Role of the Seller’s Real Estate Agent
Realtors will take charge and vet out potential buyers. They will make sure they are fully qualified with a solid pre-approval letter. Realtors are the quarterback during the home sales process. The listing agent ensures the buyer’s lender is on top of the buyer’s mortgage process and will coordinate the home inspection and appraisal process. The listing agent coordinates anything the borrower’s side needs. The listing agent’s commission is worth its weight in gold. The seller’s agent deserves every penny of the sales commission. The GCA team has the utmost respect for both the buyer’s and seller’s realtor. Talk to our loan expert about your mortgage
FAQs on Reasons to Use a Real Estate Agent Over For Sale by Owner
Let us consider a few advantages of hiring a real estate agent instead of listing the property as a For Sale by Owner (FSBO):
Reasons to Use a Real Estate Agent Over For Sale by Owner to Get Right Pricing on Home
Pricing really well involves expertise, a wealth of data, and some market knowledge, which is what real estate agents have. They carry out a CMA, a comparative market analysis, so they have the assurance that their property will be sold reasonably.
FSBO Risk: Homeowners might guess the value on the high side, but it may take ages to sell the property. To some extent, if it is priced too low, the homeowner does not recover the initial cost of the property but rather sells it for a loss.
Ability to List in the Multiple Listing Service (MLS) Are Reasons to Use a Real Estate Agent
The MLS helps real estate agents post listings such as yours, which exposes your house to many potential clients who are other real estate agents. The MLS is the most integral tool in marketing homes compared to all the other marketing tools in real estate.
FSBO Risk: The MLS is one of today’s most powerful marketing tools in virtually all real estate markets. Since FSBO sellers do not have access to this tool, they have limited exposure to the market and are thus highly unlikely to sell the property in a shorter period.
Reasons to Use a Real Estate Agent Due to Professional Marketing and Exposure
Apart from their practical function, agents are filled with innovative marketing ideas. Therefore, you can expect nothing short of high-definition photography, virtual tours, open house exhibitions, and social media marketing campaigns to lure potential buyers.
FSBO Risk: Promoting a house for sale requires much effort, time, and money. Those who want to sell their house independently must have the proper tools and a wider net.
Buyer Prequalification
Real estate agents determine whether buyers can afford the real estate being shown to them. This eliminates wasting time, resources, and effort on buyers who do not get the financing.
FSBO Risk: FSBO sellers must separate the wheat from the chaff. Thus, they waste time with unqualified buyers who may never close the deal.
Experienced Realtors Have Excellent Negotiation Skills
Agents possess expertise in negotiating on behalf of clients to achieve maximum benefits when selling a property. They also manage counteroffers, repair requests, and contingencies in contracts.
FSBO Risk: Unlike agents, FSBO sellers have limited negotiation skills, which may lead to them leaving some money on the table or failing to win a deal.
Managing Paperwork and Legal Requirements
Real estate representation always involves a lot of paperwork, including contracts and disclosures. They will ensure that all requisite legal paperwork is accurate and timely.
FSBO Risk: Without a legal and transactional background, FSBO sellers are susceptible to blunders that frustrate paperwork perfection, resulting in time-wasting red tape or courtroom battles.
Saving Time and Effort Are Reasons to Use a Real Estate Agent
Selling a house is never easy because it consumes a lot of time, particularly in marketing, scheduling showings, responding to queries, and making closure arrangements. Such jobs are done by agents, meaning that you are left with other priorities.
FSBO Risk: FSBO sellers become involved in the entire selling process, which can be really overwhelming, especially for beginners.
Handling Showings and Open Houses
Real estate agents coordinate and conduct showings and open houses, increasing the chances of showing your home to serious buyers.
FSBO Risk: The sellers (FSBO) may not find time to arrange showings and may need to learn how to present the house when they have time.
Realtors Have Access to a Professional Network
Agents work with other real estate professionals, such as appraisers, inspectors, and contractors, to ensure your home sale is completed effectively and without problems.
FSBO Risk: Proper professionals may not be available to the seller, and therefore, the seller risks encountering problems, delays, or any other related issues while transacting the property.
Social Interaction Outcomes
Agents close the transaction by tracking timelines, conducting inspections and appraisals, and making the final deal. They also ensure the buyers have the necessary financing and address any last-minute details.
FSBO Risk: For FSBO sellers, closing entails managing deadlines, which they may not be equipped to do, making it a weak link. As a result, the transaction’s delays or even complete collapse become the day’s order.
Reasons to Use a Real Estate Agent Due to Reasons to Use a Real Estate Agent
Studies have shown that houses with a working sales agent tend to sell more than homes sold FSBO. Agents understand the presentation and advertising of homes at the right prices to generate competitive bids.
FSBO Risk: FSBO sellers who handle themselves without an agent’s input may let money out of the window from pricing or accepting low offers on their properties.
Reducing the Burden
Selling a house is a stressful life event. There are stresses involved in the process, and the stress is even more drastic when the house is sold. Agents serve as tour guides throughout the event, ensuring they only encounter some problems.
FSBO Risk: Tension may result from closing the sale by oneself, especially if the individual is new to the technicalities of selling a house.
To sum up, hiring a real estate agent has obvious advantages in terms of pricing and marketing, such as reducing legal worries and stress. About selling your house more efficiently or even at a higher profit than attempting to do this yourself, an agent has the knowledge and resources to do this.
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