Why Use a Real Estate Agent to Sell Your Home
If you are thinking about selling your home; Great!! it is the perfect time to sell your home. You might be thinking about hiring a real estate agent or attempting to sell your home yourself. If you are thinking about selling your home as a For Sale by Owner (FSBO) or currently selling your home as a FSBO then you might want to reconsider and hire a real estate agent to help you sell your home. Here are some reasons as to why
use should use a real estate agent to sell your home.
Reason 1: Marketing
Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc.
Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in some areas, newspaper advertising generates phone calls to the real estate office but statistically has minimum effectiveness in selling a specific property. Your real estate agent will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts.
In addition, if you’ve used an agent in past and your home did not sell, which left you with the decision to sell the home as a FSBO, then your previous agent might not have advertised your property effectively. Remember: there’s such a thing as bad marketing.
Reason 2: Security
When a property is marketed with an agent’s help, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.
As a FSBO you can only allow showings when you are home. You can also waste time on buyers who are “lookers” and unqualified to purchase, thus wasting time, money; possibly missing out on a serious, qualified buyer. When you use an agent, your home can have showings all throughout the day (at your discretion) with the use of the lockbox key system. The passcode is only given to active licensees and that agent accompanies the potential buyer through the home.
In addition, your agent can also conduct an open house or brokers open, which allows other agents and buyers to come through the home to see what listings are available; thus giving greater exposure to the market.
Reason 3: Price Setting and Negotiation
Prior to listing your home, the agent is able to go over with you the Comparative Market Analysis (CMA); which helps the agent determine how much your home could be sold for depending on the market in your area, comparing your home to other homes (with similar features) that are currently selling and the price of homes that sold within the past 3-6 months. Your agent is aware of the current market conditions in your area and can advise you on a marketing and selling strategy to get your home sold! Click on the link, to request a free CMA.
Buyers often feel that owners overprice their homes and that the owner has inflated the asking price by the amount of the brokerage fee. If the homeowner had listed the home with an agent the selling price would be sufficient to pay the brokerage fee and still net the homeowner what he actually wants to get. Thus, buyers dealing with homeowners will argue, and insist, in most cases, on a reduction in price at least equal to what the brokerage fee would be.
It is extremely important to have your home priced right so ensure efficient activity and attention to your home, which will ultimately reach the goal of putting a SOLD sign on your lawn. By selling as a FSBO, you might not be able to price your home right and might actually sell your home significantly under or over the actually marketable price of your home. By using an agent, they can help you get the most money for your home by pricing it right and effective negotiation.
The negotiation process deals with much the same issues for both buyers and sellers, as noted above under the buying process. Your agent can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
In short, as a FSBO you could be leaving money on the table or missing out on the opportunity to sell your home within a timely basis without the aid of an agent. Remember: you will not come out ahead by saving money by selling it as a FSBO. Hire an agent.
Reason 4:You hired an agent to get you from contract to closing by close monitoring, renegotiating, and preparing for settlement
Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
By having a competent and professional agent to oversee the process, you can rest easy while your agent handles the selling process for you. They are able to effectively follow up with prospective buyers who had scheduled a showing, came to the open house, and/or contacted the agent inquiring about the home. For example, when an offer is accepted and executed, your agent can make sure that the contract is held up to par and meets all deadlines by following up with the buyer or the buyer’s agent. For instance, when it comes to inspections, your agent can renegotiate, on your behalf, the terms in such problems arise. Your agent is there to look out for your best interest.
Reason 5: Real estate agents are there for a reason…so use them!!
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a real estate agent.
You don’t want to be on the short end of the stick when selling your home as a FSBO. Hire an agent like myself to help you sell your home in a professional and efficient matter. Contact me today to discuss a strategy to help you sell your home.