We continue to try to get the message out that while there are some legitimate costs in selling your home, it really doesn’t have to cost you TENS OF THOUSAND OF DOLLARS, especially with the new changes in the NAR (National Association of Realtors) settlement agreement.
Paying a 5% commission or more, RIGHT OUT OF THE GATE, is probably not financially responsible. We advise consumers to take the lower hanging fruit from our other article and if they want to pay for assistance, below are the services that have real value.
Sellers no longer have to “ PRESET” what they will pay for THEIR ADVERSARY, the agent for the buyer. The seller can always add the buyer’ agent commission to the sale price (with assumptions) if they get an offer just like if a buyer requests the seller pay some of their closing costs but this is a much more transparent manner to show want agents are being paid.
You need three things to sell your home:
- VALUATION- You should be able to provide potential buyers with information about 3 homes that are on the market for sale and 3 homes that sold and closed within the last year that are similar. This search should be able to be accomplished within about an hour by a real estate agent or you could pay an appraiser for an appraisal (always a good idea). If we represent a seller, we can provide this service and set up an automatic update of new homes/competition as they come on the market or sell.
- MARKETING- With the advent of sites like Zillow, among others, you are able to expose your home to thousands of buyers. Ninety-nine percent of the marketing by most real estate agents is the placing of your home on the multi-list website. If you want to place an ad in a local magazine or create a short brochure with photos, those can be had for a relatively modest cost and are of questionable value, in our opinion, since most buyers have smart phones that they can use to take pictures and buyers flipping through a magazine may come across your home or may not. Open houses are also of questionable value, many visitors are either neighbors or consumers looking for entertainment and we also believe that there is a real danger to giving access to unknown people to your home.
- SYSTEM NAVIGATION- Most consumers sell homes infrequently and because it is a significant event, professional assistance is wise. While this could cost several thousands of dollars for help through an attorney, it should not cost tens of thousands of dollars. The downside is that you are likely paying for services regardless of whether your home actually goes to closing. The really good part is that you can have a great deal of faith in that you are getting independent advice and not advice from someone who doesn’t get paid if your home doesn’t close.
We hope this bite-sized information was helpful, if you have questions call Keith Eliou at 412-921-7100
