Why do I NEED a Real Estate Agent?  

Discount brokerages, for sale by owners and do-it-yourself websites are popping up everywhere. But with all of these new options, are consumers really saving money by using these new services? 

There is an old adage in business that “you get what you pay for”. Nothing could be truer in the world of real estate. Statistically about 95% of the country is currently seeing commission rates of about 6%. Some areas have commissions as low as 4% while some are as high as 7.5%.  

There are many agents out there who will make a listing presentation to you and then offer you a much lower commission rate than the standard agent in your area. This has become a very popular technique with agents who are unable to secure your business based on their abilities and track record as an agent. Don’t be fooled. In real estate you really do get what you pay for.  

An agent who cuts their commission to secure your business is rarely cutting the amount of money he or she puts in their pocket. Most times they are cutting the services they will provide that will be essential to marketing and selling your home for top dollar. A full price agent will earn every dollar you are paying them by sparing no expense to make sure your home is strategically placed on the market for sale. Secondly, if an agent lists your home for 5% and then lists another home for 6%, which house do you think they will spend more time marketing? Obviously they have less to work with on your home, so there is very little room to alter or improve your marketing plan if the home isn’t selling.  

Agents know three things that the average homeowner does not. 1) How to price your property to sell. Agents are not emotionally attached to your property. A homeowner will have the tendency to overprice their home, thus keeping it on the market without a sale. Additionally, agents have access to the local Multiple Listing Service that allows then to price your home based on very specific data from homes recently sold in your neighborhood. 2) Paperwork and negotiating contracts. There is a myriad of paperwork “hoops” to jump through when selling a home. Lead inspections, termite inspections, appraisals, etc…all must be performed before a home is sold. Agents also know how to effectively negotiate top dollar for your home. They do it all day everyday and are very good at it. 3) Marketing to your target audience. Agents know how to reach the people who want to buy your home. Again, their experience will save you months on the market.  

Lastly, remember that you are selling your largest asset when you sell your home. One wrong move could cost you more than the realtor’s commission. You will end of saving both time and money in the long run by trusting an agent to sell your home. When you get ready to sell your home, make sure you find a great agent.