Why use a Real Estate Agent to Sell my House?

Question

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?

Dawn Brenengen · Answer

@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.

Bryan L. · Answer

@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)?

Bryan L. · Answer

@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.

Paul Sorgi · Answer

My house is listed just not with an agent.

Account Closed · Answer

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?

Account Closed · Answer

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.

Doug Merriott · Answer

@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%.

Karen Margrave · Answer

@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.

Ian Hoover · Answer

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.

Paul Sorgi · Answer

@Bryan L. and @Dawn Brenengen

thanks for the clarification

Why use a Real Estate Agent to Sell my House?

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