Zeenat Vallie

 Selling Your House: To Use a Real Estate Agent or Not Selling your house is a big step and many people often view it as giving up a prized possession. However, once the decision has been made to sell, one question many people often struggle with is whether to use a real estate agent or choose to sell privately. The reason for this uncertainty is not too difficult to understand. The average real estate or realtor fees on a property sale in the 5-6% range. This fee, in addition to others associated with a property sale, can easily amount to a good chunk of the sale price. So it is very understandable when a seller considers doing away with using a realtor. But, is this really a good idea? The following attempts to answer this question. Who are real estate agents? Real estate agents are professionals who are licensed to negotiate, arrange and facilitate real estate transactions between estate buyers and sellers on behalf of a real estate broker. They understand markets, property and are able to advise you on the value of your property and when it is a buyer’s or seller’s market. An agent acts as a mediator and also assists in the transaction by detailing the terms of the agreement and may also represent a client at the settlement of the transaction. When a real estate agent successfully sells a property, they are paid a commission for their sales. In order to qualify as a real estate agent, you have to undertake and pass all the real estate exams and then you will be granted your real estate license in the state where you intend to work. On average, it can cost between $500 to $1200 to obtain a real estate license in the United States. The advantages of using an agent 1. Focused on the job A real estate agent does not have any emotional attachment to the property, unlike the owner. The owner may be holding onto the property if it has sentimental value however a real estate agent will simply view it as a business deal. Hence, using a real estate agent will likely enable the deal to be closed much quicker. 2. Availability Real estate agents are always available as it is part of their job to be able to conduct property viewings, answer questions potential buyers might have, among others. An agent will also go the extra mile to try and get the property as quick as possible as very often, the bulk of their income will often come from the commission for selling a property. According to Investopedia, the average commission rate for a realtor is 6% which is calculated on the buying or selling price of the property. 3. Large networks Realtors network with people in their industry on a regular basis which is how they build up their network. This enables them to reach a larger target market and get their message across to people looking for property to buy. This can essentially facilitate your real estate needs and ensure that your property is off the market at a faster rate than it otherwise might have been on the market for. 4. Qualifying buyers Real estate agents can easily suss out qualifying buyers which will save you time and money in the long run. Estate agents can conduct the necessary background checks to see whether interested buyers actually qualify. Once they’ve established this, they are able to weave out qualifying buyers and essentially save you time. 5. Price negotiations When you plan on selling your house, you have an idea of the price you want to get for your house. Real estate agents are skilled at price negotiations and aim to get your desired price for your house. Usually, this amount will be more instead of less and this essentially benefits the real estate agent too as their commission is based on a percentage of the selling price of your property. 6. Exposure to legal risk Knowledge of legal risk is important when selling your home. You might think of it as a simple transaction between a buyer and seller but there is more to it than meets the eye. When you sell your home, you are at risk of experiencing legal setbacks. A client could file a lawsuit against you for failure to disclose an important risk or feature about the house. This is why it’s important for a real estate agent to identify all the potential risks and mitigate it by being fully transparent with potential buyers. Cons of using an agent 1. High cost Real estate agents are legally authorized to sell estates and because the majority of them do not receive a basic salary, their commission is their livelihood. This means that they come at a high price and if you are not willing to spend at least 10% of the sale of your house on an agent then it is best not to use a real estate agent. For some people, they cannot afford to pay a large chunk to an agent merely for closing a deal whereas they could sell the house themselves and save thousands of dollars. 2. Seller’s market In a stable economy, the price of property usually increases every year and in the last year, it increased by an average of 5% according to Zillow. With a fairly good market value and an increase in property value, it attributes to a seller’s market and now would be a good time for homeowners to sell. When it is a seller’s market, it is much easier for a homeowner to get their desired price for their home. This will, therefore, enable a homeowner to sell their home themselves instead of paying a real estate agent exorbitant fees. 3. Listing your home Listing your home has never been easier than in today’s world. At the click of a button, you can post a free advert that can reach thousands of people around the world. With platforms like Craigslist, Zillow and ForSaleByOwner, a property owner can market their own property, whilst also saving thousands of dollars on marketing costs. 4. Interested buyer If you have an interested then there is no need to go via a real estate agent. You don’t need to market your property, pay an agent commission for closing the deal and you could simply consult a real estate attorney which is a requisite in certain states such as Alabama, Florida, New York and Massachusetts during real estate closings. They prepare and review documents related to real estate such as transfer documents, title deeds and purchase agreements. Conclusion When you are selling your house, you can choose to use a real estate agent or sell your house on your own. However, it’s important to take into consideration the advantages of using a real estate agent. By paying a mere 10% of your property’s value, you could make a good sale on your house, save on time to do viewings and have professional assistance and guidance which may mitigate legal risks. On the other hand, choosing to sell your home independently could save you on agent fees, you have control over the entire process and there is an element of safety as you aren’t handing your keys over to a stranger. It all comes down to what you are most comfortable with and if you have the legal know-how to oversee a property transaction.