Most real estate agents receive a 5 to 6.25% commission when they sell your home.
Their commission is deducted from the money you receive for the sale.
So if you sell your house for $200,000, the real estate agent will receive between $10,000 and $12,500.
That’s a lot of money.
And it causes many sellers to question whether using a real estate agent is really worth the expense.
Here’s my advice.
What a Real Estate Agent Does
First, you need to understand what a real estate agent does.
An agent helps you market your house.
This means pricing, advertising, and showing the home to perspective buyers.
The agent assists you in sale negotiations.
They also act as advisors during the sale process.
If you have questions about what lawyer to use or where to find a good repairman, the agent should be able to give you guidance.
Who Needs an Agent?
If you’re inexperienced with real estate, you should consider hiring an agent.
Also, if you’re too busy to market your home or deal with sale negotiations, you should think about using an agent.
Most sellers have little experience in the field or just lack the time to deal with selling their home.
So, for most people, hiring an agent makes sense.
Nevertheless, there are many sellers who can do without an agent.
Here are some examples.
The Seller Knows the Buyer
A real estate sale between two people who know each other can usually be done without an agent.
I often assist clients who are selling real estate to a neighbor, a family member or a friend.
In those scenarios, the real estate agent is usually unnecessary.
Typically the seller’s lawyer will assume some of the agent’s jobs (e.g., producing the Purchase & Sale Agreement, holding the buyer’s deposit in escrow, etc.)
The lawyer may charge a bit more for this—a few hundred dollars perhaps.
But you’ll save thousands by avoiding an agent.
The Seller Has Experience with Real Estate
People who have some experience with real estate can usually sell their property without an agent.
I recently represented a seller who had worked as a real estate paralegal.
She understood the sale process and the paperwork.
No agent was used and the sale went smoothly.
Likewise, someone who has been through the sales process two or three times will often have enough experience to manage the transaction without an agent.
Again, the seller will need the lawyer to handle some of the paperwork customarily done by the agent.
If you have any questions about selling your home with or without an agent, please feel free to email my office anytime: firstname.lastname@example.org