When you hire an agent to sell your home, you expect to get the best possible return on your real estate investment. Surprisingly, research has shown this is not always the case. In fact, Stanford University recently published a study showing that in many cases, homeowners sell their homes for more money than listing agents do. But why?
7 Ways You Save Money Selling Your Home Without An Agent:
You’re more personally invested in the deal:
Selling your home is a big deal! When you decide to sell, you are preparing to close a chapter of your life, move your family and begin the next part of your journey. By contrast, selling a home is just a routine task for a real estate agent.
You’re incentivized by price, not a quick sale:
You want to get the most money for your listing. A listing agent, on the other hand, is incentivized to get your home sold quickly. The more quickly they sell, the more quickly they get paid (and the more quickly they can move on to new clients). Monetarily, there is also a lot less incentive for an agent to hold out for a higher offer. Why? Because a higher offer doesn’t equate to a substantial difference in their commission. For example, if the home sells for $50,000 below your asking price, it only reduces the agent’s paycheck by $1,500 (based on 3% listing commission). You, on the other hand, will lose $48,500 in profit. Ouch!
You know your house better than an agent can:
When asked about the potential for hosting guests, an agent might say, “It’s a nice open space that should be able to accommodate a good number of people.” You, on the other hand, could say, “The dining room is perfect for hosting large parties. You can comfortably seat over 15 people!” Being able to connect with buyers and share stories about how the property has served your family can help you build rapport that generates offers.
You can share insider information about the neighborhood:
Unless your realtor is your neighbor, you’re going to be able to provide a lot more insight on your neighborhood than an agent can. You can talk at length about how great the neighbors are, how many minutes it takes for the kids to walk to school or hidden gem restaurants just down the road. These little insights help buyers picture themselves in their future home, creating a level of comfort they won’t get from a home tour with an agent.
You know the real value of your property:
You have been in your buyer’s shoes – showing up at the property you now live in, ready to see if it has the potential to be your new home. Take some time to think back on that day and make note of what made you fall in love with the house. Then, share those insights that only you can provide with your potential buyers.
You can be flexible on price:
Not paying a listing commission to an agent has an added benefit of giving you more wiggle room to negotiate on price. Let’s say you meet potential buyers that love the house, but simply can’t match your asking price. Since you’re saving so much up front with no listing commission, you can take a bit of a hit at the offer table to accommodate buyers.
You can access the same services an agent can:
The Multiple Listing Service (MLS) is the most powerful tool you can use to sell your home. In the past, there was no way for sellers to access the MLS without hiring an agent. Today, there are a number of tools and services that allow individuals to list on the MLS – empowering sellers to list their own home and save thousands of dollars.
Now that you understand the benefits of selling your own home, check out this post that compares the three most popular ways to list your home on the MLS and start saving today!
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