Buying a home is one of the most important financial decisions you will ever make.…
Should sellers just save that big old real estate commission and just sell their home themselves?
Are REALTORS worth the big commissions they get paid at closing, which is usually in the tens of thousands of dollars?
Buyer Agent Search decided to see what these two sellers decided to do regarding their choice of whether to sell by owner or hire a professional REALTOR. The chart below summarizes the points made in each of these two videos
FSBO seller Jan: http://buyeragentsearch.com/sale-owner-fsbo-best-option-jan/
Hired a REALTOR Jeff: http://buyeragentsearch.com/buyer-agent-search-gives-tips-selling-home-realtor-video/
A comparison chart on use of a professional listing agent v. FSBO
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Jan did For Sale By Owner (FSBO) |
Jeff Used REALTOR listing agent |
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Stress level |
Not too stressful but some things caused delays |
Stressful by nature, but REALTOR provided step by step guidance |
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Realization |
Felt she knew the steps to take |
Soon discovered there were may areas he was unfamiliar with and so needed professional advise |
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More than just pricing right & new paint |
She had maintained the home well, so knew the house would meet most inpection concerns of a buyer |
REALTOR stopped by house, itentified many things that he was unaware of to make the house be seen more favorably |
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Setting the right price |
She used the services of 2 local REALTORS who gave her price range estimates, hopeing she would perhaps hire them. |
After studdying estimates online, realized with the REALTOR demonstration of comparables, that he needed a more realistic listing price. He explained the psychology of how to price the home not too high or too low to get the most interested buyers |
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What was used for comparabes |
She picked a number about in the middle of the rnges suggested by the REALTORS |
Sold homes, under contract homes, homes ot yet on the market |
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How many interviews did you have? |
Did not interview agents |
3 and also his neighbor/friend. However, has policy not to hire friends or neighbors |
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Commission paid |
0, but did pay an attorney and the title company |
Asked for a discount from all he interviewed |
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What reduced the comission |
Doing the work herself of talking with buyers and showing them the house |
If listing agent was also the buyers agent, how quickly it sold, if he brought the buyer |
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skills that the listing agent had |
N/A. Jan handled the negotiations |
Top notch marketing skills, ability to listen and be accessible, license, suggested good contractors, up front advise even before he signed with him. |
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How far out to choose and work with the agent |
N/A |
3 months |
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How to handle different offers |
She compromised on her asking price, and sold it for $10,000 under what she was hoping for, but felt it was a fair price. |
a great deal of psychological as well as marketing info REALTOR told which bids were serious. He gave reports on how people behaved in the house, including whether they visualized themselves in the home. Accepted offer was $10,000 over asking price |
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Inspection phase |
No issues there, but had to hire a lawyer to register the title right with the county, |
Concessions were about $1200, but the REALTOR advised he fix these things since they had to do with health and safety: Failed Radon test ($700), wall crack iin basement ($500), & they didn’t bother with a sewer scope test |
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Comission split |
Did not have to pay a REALTOR commission |
At first it seemed like a lot, but he realized that his seller agent only eared 1/2 or the seller side of the fee (about 2.6% of the gross sales price), and his services were “worth every penny”. “He made the deal happen.” Did pay a reduced realtor commission out of the sales price. |
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