You should ask what they will do for that fee. Don't get rooked into paying an upfront fee, get the house in MLS at some absurd price that no one will pay any attention to, and wind up listing with a pro later for more money. You can lose time and money.
Be aware that NAR statistics show sellers frequently list their own homes by 20% above or 20% below market value. The too high scenario means you just sit and wait for buyers who never come or offer you some ridiculous price you don't understand. The too low scenario means you got what you paid for and you paid dearly for that service.
Unless you have bought and sold real estate yourself, there are so many traps and pitfalls that an experienced agent can help you avoid that frankly it's worth it to hire one. If you know what you're doing, you can accomplish anything, like changing the rings on your car or removing your own appendix or selling your own house. Yes, it is possible to do so without making mistakes, but normally it takes training and experience to do it even close to right.
Donald Trump says that he ALWAYS uses Real Estate Agents and feels that they are worth EVERY PENNY for the expertise and market knowledge they bring to the table. In fact he thinks Realtors are a "bargain."
Realtors are really "market makers" bringing Buyers and Sellers together. Remember while 6% ( a common commission) may SEEM like a lot - that about is usually divided in half between the Listing Agent and the Buyer's Agent in the transaction - on top of that each of those agents have to split their 3% with their Broker - so the Agent really may only make something like 2% of the Sales Price on a typical transaction.
With that said - this is an efficient way of bringing Buyers and Sellers together. Many Realtors including myself will offer a reduced commission or a Flat Fee - especially on upper end homes above $ 750,000.
Talk with a few agents - they'll all be happy to discuss your options.
JAY NAREY ABR, ALHS
KELLER WILLIAMS - PRESTON RD.
ForSalebyOwner.com founder gives up on own listing, hires real estate broker
AGBeat News | August 3, 2011 | 1,193 Comments
Former FSBO CEO sells home the traditional way
Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.
After giving up on the DIY route, Sambrottoâ€™s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.
Many FSBOs turn to Realtors
The news stands as an enormous validation of the real estate profession and while some may tease, it is no laughing matter and the former FSBO CEO made a good financial decision.
AGBeat columnist Herman Chan said, â€œIf people want to take a stab at For Sale By Owner (ie FSBO), go for it. But well over 80% of FSBOâ€™s eventually have to list with an real estate agent to get their house sold. Itâ€™s harder than it looks!â€
Not a new dilemma
Marlow Harris, Seattle Residential and Investment Consultant at Coldwell Banker Bain Associates told AGBeat, â€œThe ForSaleByOwner.com founderâ€™s dilemma is one we see quite often and is not unusual. Trying to sell your own property yourself or using a discount brokerage, is not the solution for everyone. Unusual properties, properties in the higher price range, these are more difficult to sell and often require specialization.â€
Harris continues, â€œWe see these choices across the board, from single family homes to huge housing developments. For instance, Vulcan, one of Paul Allenâ€™s companies which has invested heavily in Redfin, does not use Redfin to market their many condominium projects. They use traditional real estate firms such as John L. Scott, Williams Marketing and Matrix Real Estate, finding that the do-it-yourself approach to real estate just doesnâ€™t work for these types of sales.â€
'Nough said. We work for every penny we earn. End of rant.
Our company provides flat fee listings nationwide at a competitive price. We specifically lay out the terms to make sure this is the right choice for you. Our company is not a "get what you pay for" service. We recognize the need to adapt to a changing market. There are many homeowners that don't have enough equity to afford a 6% commission but still need to sell their home. The best way to sell your home is by listing it in the MLS to compete with the other homes in the market. Our program allows for homeowners to have this opportunity. Please feel free to contact me for details at 1-855-604-6400 or you can visit our website to sign up and we will get you started right away.
There are people willing to do it for free, some for $395, some for percentage.
In today's market and maybe in any market I think you have to really think strategically about how this can work for you or against you. I think back to the example of a couple of years ago when one of my customers calls me, pumps me for information, then puts the FSBO sign in the yard. I sell his buddies place in the same neighborhood a couple of months later for $19x, xxxx. He goes about 6months FSBO, then hires $395 realtor for another 6-8months, then hires discount broker for another year, then calls me. By then market had fallen 10%, so now we've got it rented for him, hoping the market turns. Now last sale of similar size in in the $150s,....with him using this strategy it's cost him about $40,000 now.
Here's something to consider.....Let's say you have $200,000 house in Frisco and you can find someone to do a really really great job at 3% buyer's agent commission+ $395. So maybe with all things being equal you can save $6000...use a good portion of that to up the buyer's agency commission to 4 or 5% or reduce your list price by $5000 to be more competitive. Use it strategically, don't think you'll put it in your own pocket.
If you interview one of the flat fee agents...make sure they come out to your house and give you a detailed presentation on what they'll do for you. Also give a shot to a couple of full service brokers, so you can see what the difference is you might get and see what you think will work best for your situation.
See the market insider for your area at the link below for updates on prices and pricing trends.
Faizur Rahman, Ph.D. SFR
Broker (Realtor) /Loan Officer (NMLS ID: 351183)
2070 W Spring Creek Pkwy, Suite #314, Plano, TX, 75023
Phone: (469) 766-4015, Fax: (214) 764-4047
All commissions and fees should be justified...a good working agent with have expertise, leg work, expenses and much more that are justified in their commission. Fees can always be negotiated in respect to your desired needs and expectations.
Choose wisely & good luck!
Every home seller wants to save money. I do too. However, it is the RESULTS that justify the fees.
The best of success in selling your home. There are a lot of exceptional real estate professionals ready to help you.
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
We offer a flat fee listing service restrictions do apply
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I would be happy to work with you on a flat fee and give you full service if we can talk about me representing you on buying the next house. I will caution you that limited listing services with give you limited exposure and limited service. Let me know if I can help. Thank you!
Yes, I do work for a set fee and I provide full service for my clients. In addition to full service, the fee is always payable at closing. Help-U-Sell Real Estate has been providing quality real estate services for consumers for over 30 years. Please contact me if you would like more information.
Help-U-Sell Sims Realty
Fees are negotiable however. Remember, your agent pays all of the expenses up front, before your home even sells. A lot goes into that. You have several homes on the market in Plantation. I have been showing a lot in there lately and have a listing in Hillcrest Estates. Great part of Frisco.
Anyway, let me know if i can help you in any way.
Just so that you know, you get what you pay for. Have you heard of "ForSaleByOwner.com"? The Ex-CEO of that website just sold his condo using a real estate agent after trying to sell it himself for 6 months. And, the REALTOR got more for the condo than what the CEO was asking!
If you would like to interview a full service real estate agent, I'd be happy to interview for the job and show you exactly what I do to market a home and get it sold.
If you are a buyer... then don't worry. YOU don't pay an agent's fee. Call me.
It's more than real estate. It's RAYL-Estate!
Keller Williams Elite