So do you need a real estate agent?
When you’re selling your home, the last thing you probably want to think about is fees. It’s a stressful process anyway, and the last thing you need is another bill to pay. However, real estate agents aren’t cheap – they usually charge a commission of around 5% when they sell your home for you.
This blog will help you make up your mind if a real estate agent is right for you or not. Are these professionals worth their hefty price tag? Do most sellers use them, or do most people trying to sell their homes find it unnecessary in the end? Let’s take a look…
How much do real estate agents make?
Real estate agents make money through a commission – usually 5% of the sales price of your home. That means if you sell your house for $300,000, the realtor will get $15,000. It’s important to remember that it’s usually a good idea to pay a portion of the commission upfront. That’s because some real estate agents work on a “contingent” basis, which means they only get paid if the deal closes. If the deal falls through, they don’t get a commission.
What’s included in a real estate agent’s fee?
Real estate agents provide a lot of services when they sell your home. They’ll do a lot of the legwork to get the word out there that your place is for sale, and they’ll also manage the showing process. During the listing period, agents usually handle any potential showings and show the home to potential buyers. They also manage the offers and counteroffers, put together a detailed home appraisal, and help you find a title company and a lawyer to handle the closing.
Real estate agent vs. selling on your own
Real estate agents and sellers who go it alone have one big difference – time. Real estate agents have more time to dedicate to your home’s sale, while sellers who go it alone have to fit this into their daily schedules. They also have access to more resources, like a network of other real estate agents who they can ask for advice.
That said, selling on your own has a lot of advantages, too. For one thing, you’ll have a much more flexible schedule. You’ll also have a lot more control over the sale of your home – you’ll be able to put whatever terms you want into the listing.
When is a real estate agent worth it?
There are a few scenarios where a real estate agent is worth it. One of those is if you don’t have much experience selling homes, or if you’re selling a really expensive property. Some types of homes are better off with a real estate agent, like luxury homes. If you have a complicated or unusual sale, or if your home is in a very expensive or competitive area, it might be best to go with a real estate agent. Another example is if you’re moving out of state. It’s going to be a lot harder to drum up interest in your sale if you’re not there to show the house.
When is a real estate agent not worth it?
There are a few scenarios where a real estate agent is not worth it. If you’re selling a smaller home in a less competitive area, you might save a lot of money by going without an agent. If you have experience selling homes or have a lot of experience with buying and selling, you might not need an agent, either. Also, if you’re able to sell your home quickly and at full price, then you’re paying for an agent’s services for no reason.
What about discount real estate agents?
There are discount real estate agents out there who promise you a lower commission or a discounted fee. This style of real estate brokerage is growing in popularity and one has even become a top franchise. There are a few things to keep in mind here. Although it is possible to negotiate a lower commission, it’s usually not something agents advertise or offer. You’ll usually have to ask. Also, remember that the commission is usually split between the agent and the broker they work for.
Final words:
Real estate agents are professionals and deserve to be paid for their services. And while there are certainly some sellers who get lucky and manage to sell their homes on their own, the vast majority of them pay a real estate agent. If you don’t have a ton of experience with selling, or if you’re selling a complicated property or in a competitive market, it’s usually worth it to use a real estate agent.