An Easy Way to Make More Money Selling Your HomeIf you’ve ever sold a home, you know it takes money to make it happen. You’ve got to fix and freshen it up to attract buyers. Then there are closing costs. And moving brings its own set of expenses.
But perhaps the biggest chunk that comes out of your pocket is the real estate agent commission, which traditionally runs around 6%. For the typical “For Sale by Owner” (FSBO) home—which sold for $184,000 last year—that’s a little more than $11,000. Ouch!
With that kind of cash, it’s no wonder that many sellers fly solo in an effort to save a few bucks. But is it worth it?
Would You Rather Save $5,500 or Make $46,000?Your home is a big investment, and you want to make the most of it. Keeping the agent commission all to yourself seems like an easy way to do that. The problem is you’re leaving even more money on the table by opting out of a pro.
How much more?
According to the National Association of Realtors (NAR), the typical home sold by an agent last year fetched $230,000. That’s a $46,000 difference!
But wait . . . there’s more! Selling your home on your own doesn’t necessarily mean an agent-free transaction. You still owe it to the buyer’s agent to pay their commission. After all, they worked hard to get their buyer into your home. If they get 3% of the sale, you can cut your $11,000 in savings in half, leaving you $5,500.
The numbers alone paint a pretty compelling picture. But let’s explore two reasons smart sellers go pro.
There’s Power in NumbersIf you want to sell your home, you’ve got to go where the buyers are. A recent NAR report found that 88% of buyers used a real estate agent to purchase their home in 2013.
Last we checked, yards signs don’t exactly have their finger on the pulse of the market. Think about how many people drive by your home on a given day. Then stack that up against an agent’s pool of buyers. There’s no comparison!
With a real estate agent, you get instant access to thousands of potential buyers through the 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.
There’s No Substitute for ExperienceLet’s set the sugarcoating aside and cut to the chase. Going it alone guarantees one thing: You’ll make mistakes. Some will be small—but some will come with zeroes on the end. You’ve worked too hard to let that happen!
Research shows FSBO sellers struggle most with paperwork, pricing and preparing their home for the sale. A real estate agent can help you with all of those things (and more!) and will advise you based on experience, not emotion.
Here are just a few ways a pro makes selling your home a cinch: