A Real Estate Agent….Do You Need One?

For many years, it's been discussed time and time again about using a real estate agent and just why you need one to sell your home.  Now, you can find statistics all over about this subject.  You will also find two disturbing connections when you research this debate: 

* Most real estate agents will keep their own home on the market for an average of 10 days longer so they can settle for a 3% higher selling price.  That can add up, especially when it's a $300,000 home.

* The commission is split between the seller's agent and the buyer's agent.  The agents must give some of their commission to the agency they work for, which usually pockets an average of 1.5% commission off their agents.  So, while you may get $10,000 more for your home by keeping it on the market 10 days longer, the agent's commission is only an extra $150 for that extra 10 days of work.

So, is it wise to avoid a real estate agent or get help from one?  Let's look a little closer. 

Selling Without an Agent

It can be a real challenge to sell your home without an agent.  An agent takes care of many things in the selling process, including but not limited to listing your home on a Multiple Listing Service, marketing your home, open houses, negotiate the price of your home and so much more. 

When selling your home on your own, you will have to be prepared to put a lot of time and energy into it.  It will be up to you to do many of the tasks a Realtor® traditionally does. People who sell their own home usually fall into one of the following: 

* They are well acquainted with the real estate field and how contracts work.

* They are testing the waters to see what interest they get in their home.

* They are desperate and unconcerned about losing money to commissions. 

In each case, you will need a large amount of free time. 

Selling With an Agent

There is usually one interesting difference in the final sale price of a home between using an agent and not using an agent.  Even if your real estate agent's interests may conflict with your own best interests, a real estate professional can truly serve an important purpose in the selling process. 

Real estate agents usually have a realistic view of pricing the home for what it's worth.  And a real estate agent can save you time by showing your home on any schedule.  One of the most important functions of a real estate agent is to get together all the contracts and other legal matter.  No one wants to get sued over an avoidable breach of contract when selling their home.  A real estate professional knows all the ins and outs of the contract process. 

While commissions may take away from your bottom line, a good agent is worth it.  The challenge is finding a good agent who has your interests as their top line.