Selling Your Home- Hiring a Realtor
This is part 3 of the Smart Money Daily “Selling Your Home” series. We’ve covered so far:
- Selling Your Home Series – Part 1 – FSBO
- Selling Your Home Series – Part 2 – FSBO Tips
- Selling Your Home Series – Part 2b – More FSBO Tips
And now we’re ready to get into the art of hiring a realtor. Upcoming installments will dig deeper into the pros and cons of using a real estate agent.
HIRING A REALTOR
The traditional strategy for selling a home involves hiring an agent to represent you. The agent becomes the “go to guy” during various phases of the deal. The seller takes their lead from the person with more experience in real estate matters.
Pros to Hiring a Realtor to Sell your Home
The job of a realtor is to help clients buy and sell real estate. This could be a first home, a second home, or an investment property. They spend years learning how to do their job and do it well. The knowledge that they have gained is invaluable to their clients.
Realtors are familiar with looking at market analysis reports and creating marketing plans to sell a variety of homes. Those who handle the listings for million dollar homes didn’t get there overnight. They used their knowledge to develop an instinct for the market and a strategy to find buyers in any market.
When selling a home, there are many people involved. Of course there is the seller and the potential buyer along with their representatives if they choose to use them.
We often forget about the appraisers, inspectors, repair people, attorneys, Escrow Company, mortgage lenders, and a few others who have roles to play along the way.
Realtors are used to working with these individuals on a regular basis. Over the years they have figured out who is reliable and who is not. For example, they know which lenders deal best with clients who have marginal credit and those who are better for fixed rate mortgages. This network will expedite various areas of the process for the seller.
When a realtor and a seller sign an agreement, the realtor is bound to find the best offer for you. They use reports to determine an asking price for your home. The marketing strategy uses the best methods to increase the traffic to your door for open houses and showings. If you have any questions, they are there to answer them.
A seller is not without responsibility, but the burden is not so bad with a realtor to handle the heavy work. They direct the seller with “to do” lists for home preparation, inspection readiness, and open house tips.
Cons to Hiring a Realtor to Sell your Home
Realtors are professionals in the real estate industry and they are paid for their expertise. When a home is listed, the realtor gets a commission on the final sale price. This is a part of the agreement the seller makes with the realty company. The commission can be as much as seven percent.
Some people don’t mind paying the commission for the services they will receive, but what if the services are less than adequate? All real estate agents are not the same. Some are less experienced and as such will not get you the price you want. They can even make mistakes that can cost you the sale. You are paying them a commission for a job not well done.
When a person is eager to sell, they will be drawn to agents who promise large selling prices and a short time on the market. These agents are trying to woo you away from other agents with false hopes. Let’s just say it straight out—they are lying to get your business.
No agent can promise a high price in any market. Sure, a seller’s market makes their job easier but it still does not guarantee anything. How well they market your home is a determining factor in how long it stays on the market but everything is subject to buyer fickleness.