Do I Really "Save On The Commission?" | ||
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As you look at the whole picture to see if you actually are better off trying to sell your house yourself, keep in mind:
Holding Costs: Mortgage payments, insurance, property taxes, upkeep and maintenance, marketing expenses and your time devoted to the sale are continuing costs while your property is for sale. What is your time worth? Wouldn't you rather be going forward with your plans?
Time Value of Money: What are your plans for the proceeds from the sale. Can you make more putting your money to work in another investment? You are selling probably the most expensive investment you own. Don't you want to maximize your odds of getting a quick sale? And, how much commission did you save if your house does not sell?
Additional Considerations: Although it is possible, in my experience, home sellers who want to save the sales commission rarely realize the savings. In most cases, when a professional real estate specialist is involved in the sale, the sellers pocket more cash - typically as much as they wanted, or more - and still pay for the professional services. Here's why:
* Most buyers use an agent because it costs the buyer nothing for the service, which is usually paid by the seller. A few bargain-hunting buyers seek out "For Sale By Owner" homes, expecting to save the same commission the "For Sale By Owner" hopes to save. Buying for less is their primary concern, and this is reflected in typical low-ball offers.
* Opportunistic speculators and investors offer less for a "For Sale By Owner" home. Without an agent to represent the owner's interests, sellers may end up accepting a below-value offer.
* Real estate professionals are knowledgable about the local market and know the highest price a home is likely to bring. A professional can advise the seller on the right balance between the highest price and the fastest sale.
* In contract negotiations, a real estate professional not only is trained in negotiation techniques, but also is phychologically in a better position than an emotionally involved seller. The result is often a more profitable contract for the seller.
The Bottom Line? When selling real estate, time is money and it pays in time and money to go with the professionals. When you hire a professional real estate broker to represent you in the sale of your house, the fee for their services is a cost of selling, like title insurance, an escrow agent and other closing costs. When you hire us, you are hiring licensed professional real estate brokers providing years of experience and full service, at no cost unless we sell your house. Call us to sell your house.
Next Home Selling Article: How To Sell Your House Yourself (FSBO)
