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Do I Need a Real Estate Agent?
Virtually everyone who has sold a home has asked themselves if it was worth paying 5-7% in real estate commissions to the agents. Even buyers, who typically do not pay the agents directly, end up paying the form of higher housing prices, because most sellers would sell the house for less if they did not have agent fees to pay. So can you do it alone? Maybe, but be sure to consider the value that an experienced agent brings. If you are a seller…
Make sure to consider what an agent can do for you before deciding to try to sell your house yourself. An experienced agent can give you a feel for local prices which is probably more accurate than the online estimating tools like the one at www.zillow.com. The agent can advise on things which would make your home sell for more such as staging, minor repairs, etc. The agent can advertise your home on the multiple listing service which will get it in front of many more people. The agent might even have potential buyers at the ready upon getting your listing. Most importantly, the agent will spend the time to show potential buyers your home which will allow you to continue living your life. Though agents provide many valuable services, be aware of the pitfalls of working with an agent. At the core, agents are commissioned sales people and despite their own best efforts, it may be hard for them to remain objective about an offer when they have a large vested interest in seeing a deal happen. An agent will not clean up your home and make sure it’s in prime viewing condition for every buyer…that’s your job. Finally, not all agents are created equally. Some are truly remarkable marketers and salespeople, while many others are new to game. Make sure to interview at least three potential listing agents before making a decision, and do not base your decision solely on how much they say they can get for your home. Ultimately the market will make that determination, not the agent. If you are a buyer…
You can certainly find plenty of homes to look at without an agent on sites like this one, Craigslist, etc. Be wary, however. Just because you walk in without an agent does not mean you will save money. Some listing agents will keep the full 5-6% commission instead of sharing it with your agent if you do not have an agent. Some listing agents will not show you a home unless you have an agent. Most importantly, you may pay far too much, not know what to ask for, or buy a home with bad features (bad school district, bad “bones”, etc.) if you do not have someone advising you. In summary, if you are a seller, you can certainly try listing your home yourself, but give yourself a timeline of, say, 2 months. If you do not get any nibbles during that time, get an agent. If you are a buyer, you can certainly drive around open houses on your own, but you may have trouble finding that perfect home without someone to guide you.
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