You have the For Sale By Owners, The Discount Agents, and of course the traditional full service Agent. Ahh the dilemma, take a deep breath and stop hyperventilating. It's YOUR lucky day! As usual its Ramona to the rescue!!! Compiled for your convenience and without bias, the pros and cons of each option available to you.
Traditional Brokers
The Pros:Brokers work. Despite the advent of the Internet, traditional agents continue to dominate the real-estate market. Indeed, 88% of all home sales were sold with the assistance of a realtor. Want exposure? Hire a broker. Traditional Realtors share their property listings in a database called the Multiple Listing Service. This database contains more than 95% of all properties that are for sale and is used by more than 1.3 million agents nationwide. It's a snap for an agent to find all of the homes in a client's price range. And since the listing broker is willing to split the 6% commission with any realtor who finds a buyer, there's plenty of incentive to show a competitor's inventory.
You could, however, save yourself thousands of dollars by selling your property on your own. But some would argue that the headache isn't worth it..The Pros:Brokers work. Despite the advent of the Internet, traditional agents continue to dominate the real-estate market. Indeed, 88% of all home sales were sold with the assistance of a realtor. Want exposure? Hire a broker. Traditional Realtors share their property listings in a database called the Multiple Listing Service. This database contains more than 95% of all properties that are for sale and is used by more than 1.3 million agents nationwide. It's a snap for an agent to find all of the homes in a client's price range. And since the listing broker is willing to split the 6% commission with any realtor who finds a buyer, there's plenty of incentive to show a competitor's inventory.
A good agent will do all the work for you. He or she will take control of the transaction and do everything from setting an accurate asking price and prescreening prospective buyers to showing your home and negotiating the final price. All you'll need to do is keep the place tidy. This should free you to spend your weekends looking for your new abode.
The Cons:Brokers are expensive. Most of them charge as much as a 6% commission for their services. So if your four-bedroom colonial sells for $350,000, you'll have to cut a check for $21,000 at closing. However, all fees are negotiable and many brokers are reporting they charge slightly lower fees.
A broker is in control of your transaction. So be prepared for strangers to traipse through your house for a "viewing" at practically any time of day. More important, your broker will be negotiating on your behalf, and you'll have to trust that he or she is providing you with all of the information you need to make a final decision. At its worst, you may find your agent encouraging you to reduce your price just to make a quick sale so he can move on to another property.
Discount Brokers
The Pros:Discount brokers are cheaper than traditional brokers. Some charge sellers between 2% and 5% for their services. (Typically, the higher the fee, the more service that's provided.) So the commission for that same four-bedroom colonial could cost you just $7,000, far less than the $21,000 a traditional broker would charge you.
Some discounters will prescreen for qualified buyers and weed out the riff raff. For example, some companies run credit checks on all potential buyers and makes sure they're preapproved for a sufficiently large mortgage.
The Cons:You get what you pay for. Some discounters merely list your property on their Web site. Or they'll field calls from prospective buyers, but you'll have to give the official home tour and deliver the hard sell. If this is all the service you're getting, some industry insiders argue you might as well run an ad in the local newspaperThe Pros:Discount brokers are cheaper than traditional brokers. Some charge sellers between 2% and 5% for their services. (Typically, the higher the fee, the more service that's provided.) So the commission for that same four-bedroom colonial could cost you just $7,000, far less than the $21,000 a traditional broker would charge you.
Some discounters will prescreen for qualified buyers and weed out the riff raff. For example, some companies run credit checks on all potential buyers and makes sure they're preapproved for a sufficiently large mortgage.
You'll have to pay up to get your home in the Multiple Listing Service database. While discounters can offer you this service, you won't get it for 2%. Many discounters will charge you a higher fee, say 4% to 5%, for the listing.
Don't expect agents to bang down your door. Even if your home is listed in the Multiple Listing Service database, some agents may refuse to show your property. Why? The discounted commission. Rather than the traditional 3% buyer's commission, many discounters will offer agents just 2% or 2.5%. While that may seem like splitting hairs to you, the difference can really add up. If an agent can make $10,500 selling one $350,000 home vs. $7,000 on another comparable property, which one do you think he'll show first?
For Sale by Owner
The Pros:More money in your pocket. That's right, you get to keep whatever your home sells for. You can put that 6% commission toward the down payment on a larger home or toward more important expenses, such as your child's education.
No one knows your home better than you do. So doesn't it make sense that you could point out all of the amenities and sell it better than an agent? And consider this: Nine out of 10 agents showing a home are walking through it for the first time.
If you want something done right, do it yourself. Selling your own home gives you complete control over the transaction. You set the price, you set up convenient times to show the home and you get to negotiate with a buyer. This way, you'll know when it's time to cave and lower your price or stay firm because your house is attracting a lot of interest.
The Cons:Less exposure. If you try to sell your home without the assistance of a broker, you'll dramatically limit the number of potential buyers who'll view your property. First, your house won't be included in the Multiple Listing Service. Second, buyers feel more comfortable using a broker, since they want to see all of the available homes in a given neighborhood and have a professional on hand to help analyze the properties.
Expect your home to sell for less. According to the National Association of Realtors, homes that sold with a broker went for a higher median price than those sold by an owner. Many buyers believe they can negotiate more vigorously if they're buying directly from an owner who's avoiding a hefty broker's fee.
Selling your own home can be a hassle. You have to set a price, place ads in the paper, field calls from prospective buyers and then put on your best smile and sell that house like a pro. And don't forget about the negotiations. Some industry insiders even argue that buyers feel more comfortable talking money with a third party. Now try juggling all that's involved while holding down a full-time job and looking for a new home for your family to move into. Some argue that the headache is well worth the 6% commission.
The Pros:More money in your pocket. That's right, you get to keep whatever your home sells for. You can put that 6% commission toward the down payment on a larger home or toward more important expenses, such as your child's education.
No one knows your home better than you do. So doesn't it make sense that you could point out all of the amenities and sell it better than an agent? And consider this: Nine out of 10 agents showing a home are walking through it for the first time.
If you want something done right, do it yourself. Selling your own home gives you complete control over the transaction. You set the price, you set up convenient times to show the home and you get to negotiate with a buyer. This way, you'll know when it's time to cave and lower your price or stay firm because your house is attracting a lot of interest.
The Cons:Less exposure. If you try to sell your home without the assistance of a broker, you'll dramatically limit the number of potential buyers who'll view your property. First, your house won't be included in the Multiple Listing Service. Second, buyers feel more comfortable using a broker, since they want to see all of the available homes in a given neighborhood and have a professional on hand to help analyze the properties.
Expect your home to sell for less. According to the National Association of Realtors, homes that sold with a broker went for a higher median price than those sold by an owner. Many buyers believe they can negotiate more vigorously if they're buying directly from an owner who's avoiding a hefty broker's fee.
Selling your own home can be a hassle. You have to set a price, place ads in the paper, field calls from prospective buyers and then put on your best smile and sell that house like a pro. And don't forget about the negotiations. Some industry insiders even argue that buyers feel more comfortable talking money with a third party. Now try juggling all that's involved while holding down a full-time job and looking for a new home for your family to move into. Some argue that the headache is well worth the 6% commission.
So now that you have decided to go with the Ramona Kauhi team for all of your Real Estate needs, go ahead and give me a call!
Seriously, whatever route you choose to go with, we can offer good, honest advice. Acquired from being in the business and making it successful, through all the ups and downs the market has experienced.
THANK YOU!
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