Thinking of saving on paying commission by selling your home on your own? You might want to think again. It may seem like the commission would take quite a chunk out of your sales price but having a good agent by your side has been shown not only to improve the sales price of your home, it also helps protect everybody involved in the transaction.
A recent study (link here) by Collateral Analytics shows that FSBO (for sale by owner) transactions net significantly less than homes sold through the MLS (which requires an agent). Homes sell for so much less that on average that the difference covers the cost of the commission and sometimes even more. So if you’re likely not going to walk away with more money, why take the risk?
Having agents involved in a real estate transaction ensures that all laws are followed and that the proper paperwork is initiated and followed through on. There are many details in a real estate transaction that need to be considered and for someone who does not have knowledge of these intricacies it would be very easy to miss those important details. If a detail is missed and you do not have an agent you will be required to figure out for yourself where the transaction has gone wrong and that alone could risk the close of the sale.
A good agent will notify you of anything that you should be looking out for and they are also negotiators who are there to act on your behalf. With FSBO’s specifically there are strategic buyers that look to capitalize on the lower experience level of the homeowner to get a lower sale price on the home. Having an agent by your side helps mitigate this possibility.
Along with the money and risk part of the equation there is the marketing aspect also. Real estate agents are experienced in how to market your home to get it sold faster. They also know of important improvements that will need to be made for your home to have good curb appeal. Experienced agents know what buyers look for when buying a home and they can help you to appeal to what they are looking for. All of these things make for a quicker and smoother transaction.
Lisamarie Wand is experienced in residential sales, commercial sales and property management. She is there to help every step of the way in any type of real estate transaction.