There are two reasons I still think you need to use an agent, but those reasons are crucial to getting the highest price for your home. Many vendors look at the real estate industry and say “how hard can it be?” You stand at the door, take down names, follow up and get the best offer. In many markets a property pretty much sells itself. But what is the risk of selling without an agent and is it worth it?
So, what have you got to gain? The most common way that an Agent charges a commission is via a percentage of the sales price of the home. For example, if you agree on a 2% commission rate and your home sells for $800,000, then $16,000 is payable. Arguably this is a lot of money which is why some vendors consider selling their own homes. They are backing their own ability to still get the best price versus an agent to save that $16,000. But will you save this money or lose out on not getting the highest offer? Here are two key reasons I always go with an agent.
Reason #1
Firstly, agents have the negotiation skills and sell houses all the time. They know the questions to ask potential buyers. Don’t get me wrong, not all agents are great at negotiations, favourable property conditions or auctioning properties where they are not negotiating but rather facilitating a competition, has allowed some less talented agents to survive. This is why I secret shop, I want to test an agent’s communication ability and if I think they have what it takes in the worst-case scenario where interest is low and so their skill set will need to be high.
Reason #2
The other reason an agent adds value is they should have a database of current buyers. Any agent worth their pay check is collecting not just names and numbers, but data on buyers so that when an offer is made they know if they have more in the bank. Now this database is constantly changing and going out of date as buyers purchase, interest rates change or circumstances change. This is why I say the best agent for your home today could change tomorrow. It is understanding who is in the best position to sell your home right now.
Some other things to consider if selling yourself, you will need to advertise yourself and arrange contracts. You also want to keep the emotion out of the transaction. Some ‘Sale by Owner’ properties can sit on the market longer as vendors miss the mark with how to advertise. Agent’s often underquote (I strongly disagree with the tactic but it has a flow on effect with other new listings with fair pricing).
Finally, consider how your market may perceive the fact you are selling yourself. Will buyers offer less because you are not an agent and they feel they can offer less?
After considering the above if you feel that selling your own home will still outweigh the costs of an agent, by all means give it a go, if you don’t get the interest you are after you can always engage an agent later.
So, what have you got to gain? The most common way that an Agent charges a commission is via a percentage of the sales price of the home. For example, if you agree on a 2% commission rate and your home sells for $800,000, then $16,000 is payable. Arguably this is a lot of money which is why some vendors consider selling their own homes. They are backing their own ability to still get the best price versus an agent to save that $16,000. But will you save this money or lose out on not getting the highest offer? Here are two key reasons I always go with an agent.
Reason #1
Firstly, agents have the negotiation skills and sell houses all the time. They know the questions to ask potential buyers. Don’t get me wrong, not all agents are great at negotiations, favourable property conditions or auctioning properties where they are not negotiating but rather facilitating a competition, has allowed some less talented agents to survive. This is why I secret shop, I want to test an agent’s communication ability and if I think they have what it takes in the worst-case scenario where interest is low and so their skill set will need to be high.
Reason #2
The other reason an agent adds value is they should have a database of current buyers. Any agent worth their pay check is collecting not just names and numbers, but data on buyers so that when an offer is made they know if they have more in the bank. Now this database is constantly changing and going out of date as buyers purchase, interest rates change or circumstances change. This is why I say the best agent for your home today could change tomorrow. It is understanding who is in the best position to sell your home right now.
Some other things to consider if selling yourself, you will need to advertise yourself and arrange contracts. You also want to keep the emotion out of the transaction. Some ‘Sale by Owner’ properties can sit on the market longer as vendors miss the mark with how to advertise. Agent’s often underquote (I strongly disagree with the tactic but it has a flow on effect with other new listings with fair pricing).
Finally, consider how your market may perceive the fact you are selling yourself. Will buyers offer less because you are not an agent and they feel they can offer less?
After considering the above if you feel that selling your own home will still outweigh the costs of an agent, by all means give it a go, if you don’t get the interest you are after you can always engage an agent later.