Why use a Real Estate Agent to Sell my House?

18 Replies

I have just completed a rehab and I have listed it for sale using an entry only listing on the MLS. My home is on most of the websites such as Zillow, Realtor.com, etc.

I am also offering 3% to buyer agents. 

I have received a few calls from agents who find my ads on craigslist and want my listing.  I kindly tell them  I am not interested and then tell me how I will never get my house sold. (topic for another post)   I ask all if they have any buyers and the answer has always been No.  Then they emphasize that they have the "best" marketing plan.  When I ask for details they say we have to meet.  My question is to the group What other marketing activities are Real Estate Agents doing?  

Paul Sorgi | 781 534 9610

@Paul Sorgi  - Let me ask you this?  What if a good Realtor could actually SAVE you money?  Would you list with one then?

For example - on one recent deal, I saved my client $2000 in the negotiation process.  On another deal, I found a $3000 error that the attorney's office made with the closing papers - and I demanded that it be fixed.  There's plenty of other ways that a good Realtor can save money for their clients.  And those numbers that I mentioned above may look small to you if you have a $300,000 property, but realize that those savings were on $100,000 or less deals, and would likely increase proportionately to the size of the deal.  By the way, did you read the Wall Street Journal article where the founder of forsalebyowner dot com eventually chose to sell his property with a broker - and actually walked away with MORE money than what he had tried to get on his own (after months of trying unsuccessfully)?

In addition to savings like I mentioned above, a really good Realtor can often save clients in other ways, such as - making recommendations for the best and lowest priced closing attorneys, termite treatment companies, home inspectors, surveyors, etc.

@Paul Sorgi It seems like the realtors will only bring you buyers if you decided to list your house with them.... Their marketing usually consist of calling other realtors and sending out an email list to tons of other realtors in the area. Open houses are another huge marketing tool. Realtors live within a group, and information gets passed along much quicker when you are in that group rather than outside. When it comes down to it, they usually can get the property sold much quicker. Although I am a licensed realtor, I have never had any experience with listing a property. I have seen many of my clients try to sell the house FSBO and it usually takes them much longer than when I see other clients list with a good realtor. I hope this helps.

According to the following link Realtors sold 89% of the houses in 2013.

http://www.realtor.org/field-guides/field-guide-to...

You'll have to scroll down to find the statistic.

In my case, the only time I have ever sold without listing is when I was offering some type of special financing on the house.  Otherwise, I thought to get the maximum exposure, I needed to list.  

Originally posted by @Bryan L. :

@Paul Sorgi - Let me ask you this?  What if a good Realtor could actually SAVE you money?  Would you list with one then?

Some of what  you have mentioned I expect from an agent.  I review every document before a closing and I expect agent and attorney to do so as well.  Those that miss things I usually don't work with them again.   

I am not opposed to listing with an agent I am just curious as to these secret marketing techniques. 

Example would be I run First time home buyer seminars monthly and have one coming up next week.  I would love to spot light your home during this event that I usually draw 15 to 20 buyers looking to buy their first home.

I guess the title of my post could have been "How Not to Get My Listing" 

Paul Sorgi | 781 534 9610

Originally posted by @Jim Piper :

According to the following link Realtors sold 89% of the houses in 2013.

http://www.realtor.org/field-guides/field-guide-to...

You'll have to scroll down to find the statistic.

In my case, the only time I have ever sold without listing is when I was offering some type of special financing on the house.  Otherwise, I thought to get the maximum exposure, I needed to list.  

 My house is listed just not with an agent.  

Paul Sorgi | 781 534 9610

@Ross Schneider  I do agree that a good agent is well connected and that is a benefit.  If I decide to use the services of an agent I will only use someone who has a history of sales and has been around for a few years.  Most likely someone I have met and know they have a strong network. 

Paul Sorgi | 781 534 9610

@Paul Sorgi The truth is that the most effective marketing is to just get it into the MLS. Which you can do with a limited-service listing (of flat fee listing) as you have done. But the question remains - will agents work hard and go out of their way to sell your home? I listed one of my rentals to sell a few months ago, and I actually offered 4% to any selling agent (not just the typical 3%). So, when agents are out showing homes, which one do you think that they pushed to sell? You kind of get what you pay for.

@Bryan L.   Good advice maybe I need to raise my payout.  

Paul Sorgi | 781 534 9610

Originally posted by @Paul Sorgi :
Originally posted by @Jim Piper:

According to the following link Realtors sold 89% of the houses in 2013.

http://www.realtor.org/field-guides/field-guide-to...

You'll have to scroll down to find the statistic.

In my case, the only time I have ever sold without listing is when I was offering some type of special financing on the house.  Otherwise, I thought to get the maximum exposure, I needed to list.  

 My house is listed just not with an agent.  

 Yes, I know that Paul.  That's why I made the post.  You're trying to sell via the other 11%.  Most of the houses sold are sold by Realtors.  Maybe you should list your house?

@Jim Piper  Ok, misunderstood your post. Thanks for clarifying. 

Paul Sorgi | 781 534 9610

@Paul Sorgi If you are comfortable with all of the other aspects of selling a home (not just marketing), then you probably do not need to list it with an agent. You do need to get it into MLS, though. Pay a limited service company to do an entry only listing. Offer the full buyer's agent commission, maybe even a little more. Agents will shy away from selling EO listings because if their buyer buys it, they know they likely now have to do more work to get it closed.

Medium buysellinvest.2Dawn Brenengen, Trailwood Realty, LLC | 919‑840‑8692 | http://www.trailwoodrealty.com | Podcast Guest on Show #101

@Dawn Brenengen  thanks for the input.  What do you men by more work?  

Paul Sorgi | 781 534 9610

@Paul Sorgi A good listing agent does a lot more than just market your property. He/she handles all of the negotiations for you and helps to navigate the deal through to a successful closing. It's likely that you don't have the time or knowledge to navigate your side of the deal through closing, so the buyer's agent will likely have more work to do - helping you to know how to do the things that a listing agent would normally do for you. And I confused by something that you said earlier. You said it is "listed", but not with an agent. Do you actually have it in the local association of Realtor's MLS, or do you have it in some other "MLS" that is not operated by the Realtor's board. And, if you do have it in the Realtor's MLS, do you know whether or not it is listed in the correct MLS? (did you even know that there are multiple MLSes, and that there is a such thing as an incorrect MLS)?

@Paul Sorgi  Just what @Bryan L.  said.  If the seller doesn't have an agent, the buyer's agent has to make sure the seller stays on top of everything he needs to do before closing to make sure the deal doesn't fall apart.  These are the things the seller's agent would typically do.  Getting a home marketed and under contract is just half of the job.  

Medium buysellinvest.2Dawn Brenengen, Trailwood Realty, LLC | 919‑840‑8692 | http://www.trailwoodrealty.com | Podcast Guest on Show #101

@Bryan L. and @Dawn Brenengen  

 thanks for the clarification 

Paul Sorgi | 781 534 9610

You can sell on your own but I will tell you that if you hire the right agent they are worth it, I can't tell you how many times I got more money for my clients then they felt that would be able to get. On top of that I do show FSBO's to my clients and I get them great deals because most FSBO's (For Sale By Owner) do not know the process of negotiation and most go to their bottom dollar up front and don't think about reply to inspections or appraisals.

The good agents also do plenty more marketing like post carding, email blasts, ACRE & REIA meetings, premiere listings on Zillow & Realtor.com. I would guess on a nice property my partner and I probably spend over $1k just in marketing on top of what Keller Williams spends, we can afford to do so because when we market your property we are also marketing ourselves.

Good luck! let us know how it goes.

Medium 3Ian Hoover, Deacon Hoover Real Estate Advisors | [email protected] | 724‑492‑8312 | PA Agent # RM423721

@Paul Sorgi You're looking at this wrong. Most buyers are working with agents. Many agents won't sell FSBO listings where they are dealing with a seller directly. Also, agents get paid a better commission when they are selling an "in house" listing, and usually will push those first as it has more financial value for them and their office, and it also pushes up the number of sales for their office, which helps the reputation for the office, and helps all of the agents gain clients.

Another thing is marketing. Most offices do a considerable amount of advertising, have websites, post on social media, etc. which brings in ad calls. Very rarely do buyers purchase the house they call on, and very rarely is a house sold off an Open House. Those are just tools that real estate offices use to generate potential clients and get them into a property that specifically fits their needs. 

So, you can continue advertising on your own, and hopefully find that one buyer that isn't working with an agent and your property is a perfect fit for, or list with an agent that works in an office with multiple buyers, does a lot of advertising, is active on social media, etc. and maybe one of those leads may be the fit for your property. 

I have done it both ways. Listing and selling our own properties, and at times if we were working more commercial, listing our residential with an agent that specialized in that. Both can work. You need to know your local market, and where buyers are coming from, etc. 

Medium house plansKaren Margrave, Parlay Investments | [email protected] | http://www.parlayinvestments.com | CA Contractor # 680782

@Dawn Brenengen hits the nail right on the head. Most agents are creatures of comfort (I won't use my usual term because there are so many agents posting here). Many agents do not like the added work of having to make sure that all of the paperwork is filled out by the seller. Calming the seller's fears about this process or that. For the most part it is quite a hassle, though I am coming off a really great FSBO experience.

So at the end of the day like any salesman Realtors are likely to steer their clients away from FSBO or limited service listings because they know they are going to have to work harder for their 3%.

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