Do you really need a listing agent to help sell your home? More and more home sellers are opting to go it alone when listing their property, but is the risk really worth the reward? For many, the answer is yes. Listing your home on your own can cut out on average about 6% in commission costs. That’s about $18,000 on a $300,000 home. Is a selling agent’s experience worth the cost? The mortgage brokers at FamilyLending.ca have investigated both sides of the coin, and offer up the following pros and cons to consider:
If You Work With a Listing Agent
In order to work with a listing agent, you must first sign a legally binding contract. This typically gives your realtor exclusive rights to sell your property within a certain period of time, usually between 60 and 90 days. Once you’ve signed the contract, it’s the realtor’s responsibility to:
- Research the market in order to determine a fair listing price
- Develop a marketing plan that includes a schedule for listing, showings, and advertising your property
- Advise you on how to best prepare your home for sale, as well as help arrange for pre-sale tasks such as home inspections and staging
- Negotiate the purchase based on your recommendations and move all of the paperwork through the transaction process
All of these services are convenient and useful, but do you really need a real estate agent to do them? Here are four alternative methods for tackling the sale on your own.
- Setting your list price: It’s important to note that realtors are not appraisers. If you’re interested in learning the true market value of your home, the mortgage brokers at FamilyLending.ca recommend contacting a professional appraiser. An agent will give you their perspective based on what they are seeing, but rarely do they have any solid training in the aspect.
- Building a marketing plan: With the emergence of online platforms design specifically for the purpose of marketing homes of sellers not affiliated with agents, homeowners no longer need to rely on an agent to get their property in front of prospective buyers.
- Arranging pre-sale tasks: The Internet makes it easy for homeowners to access the resources and information they need to successfully wrap-up any pre-sale requirements. All of the services that a real estate agent offers – finding a real estate attorney, coordinating home viewings, bringing in a stager – can be done by any homeowner who is willing to put in the effort.
- Assisting with paperwork: In most cases, it’s the real estate lawyer’s – not the agent’s – responsibility for handling any paperwork involved in the purchase of your home. While an agent may offer direction, they are not legally capable of providing the necessary guidance.
When you work alone, you take on a major responsibility. Sometimes it’s just easier to hire someone to handle these details on your behalf. It’s also worth noting that, even though you save on the seller’s commission, you’ll still be stuck paying the buyer’s agent for their services.
If you’re looking for convenience, nothing beats an experienced real estate agent. If you need help finding a reputable agent in your area, give the mortgage brokers at FamiyLending.ca a call. Not only will we help you find a great mortgage, but we’ll also connect you to with an experience listing agent in your area.