I'm looking to buy a home...and thought would give my perspective to this as a potential buyer...

I looked at a few homes "for sale by owner" and found all of them to be overpriced.. .. the houses listed by agents in most cases appear to be reasonably priced....and have a higher chance of selling...

If you rightly price your home, you can sell yourself and save on commissions, but recently I've not come across a single home priced by owner to be reasonable enough to buy..

So, I am continuing to look only for homes listed by agents...

P.S. Middlesex County is an area that my company covers, but not yet listed on my website.

Jack,

I might suggest you consider using a flat fee company wherein your home is listed on the MLS and Realtor.com for a fee and you pay only a commission to the agent who brings you the buyer (typically 2 to 2.5%). See http://www.PatrizioRE.com for additiional info.

I listed a property 7 days ago in excellent condition in a great community at a flat fee and received a contract today from a reputable local real estate agency. Another listing in a desirable area more in your price range went under contract in 69 days. Although not the norm, especially in this market, it is doable.

Love and Peace,
Francesca Patrizio, Realtor, ePro
Francesca@PatrizioRE.com

Jack
The main thing you want is to net the most money when you sell, correct? Most people think that it is possible to net the most by paying a lower commission. That might be true, however here are some points for you to ask yourself:

Do you think that most Realtors are the same? Many people think that we are very similar in expertise and ability, so if they can just pick the right one who will "do it for less", then they'll save money.

The truth is that (these are my MLS stats), only about 20% of listings sell within 30 days. Those that sell in 30 days have the closest list price to sale price ratio. In my market that is 99.7%. Homes that sell in 120 days are selling at 92.3% of asking price. And that is AFTER some price reductions.

My point is that if only 20% of listings are selling closest to asking price, that means that 80% of listings are overpriced and not being marketed correctly (otherwise they'd be in the 20%). So if 80% of the Realtors cannot get their listings priced or marketed correctly, how will you know where the Realtor you are interviewing stands? In the 20%, or in the 80%?

What makes a home sell closest to asking price (and why you need to hire the best Realtor you can find).
The Realtor's primary jobs are to:
help you maximize the marketability of the property - make recommendations on cleaning, painting, de-cluttering, etc.
Identify the features of the property that buyers will find have the most value and exposing them.
Help you list the home with a price that will attract the best buyers...that means that list price is a MARKETING TOOL.

In most of my listings I could tell you how superior market knowledge and negotiating have actually SAVED my seller MORE than the point or two that they could have saved listing with a discount broker.

Good luck. If you'd like a referral to a top Realtor in your area, let me know.

I love to read good answers like Jack's and Bryan's. Here are my "two-cents".

There are five primary steps often used in selling a home, although each step can have a wide range of sub-steps, nuances, or common practices.

1) Pricing - you may be reasonably certain what the home will bring, but picking the wrong price point could hinder the exposure. Also, understanding the likely search criteria (school district, price, size, etc) of the most proabable buyer is helpful.

2) Marketing - It sounds like the house will sell itself, but not without getting it presented to a broad pool potential buyers. Using internet websites (including MLS) is probably the cheapest way to get the most exposure, but using the local MLS likely brings the highest percentage of bonafide buyers to the front door. Coordinating showings can be time consuming and burdensome.

3) Negotiating - the payer of most closing costs is usually negotiable, but there are often customary amounts and practices specific to each market. To me the issue is not who is paying for which cost, but rather, are the net proceeds acceptable. Interpreting the other party's motivation and abilities is not always easy either. As Bryan wrote, the value of separation from the other party shouldn't be discounted. Which forms and disclosures are appropriate?

4) Contract Management - easily the hardest and most time consuming part of any transaction. The number of inspections and deadlines and potential pitfalls is very high. Right now the loan process alone is a quagmire of headaches. What is the best way to handle the issues that airse?

5) Closing / Money - theoretically the title and escrow companies ensure accuracy in accounting, but I'm no longer surprised to find discrepancies between purchase agreements and closing statements.

No doubt....hire a professional, and remember service levels and commissions can vary

=) Lovely. Well, at least you didn't flame me for posting out of my jurisdiction.

: )

Spraying my trees.

Sheesh, Sacktig. Mark your territory much?

Like so many things in life, find what you want and what you need then negotiate as best you can. I would rather pay 10% if I netted more. Select your agent upon their response time to you, their references and proven track record. Ask about the terms of the listing agreement. I often write in escape clauses in the event clients arent happy with my work. An agent who is taking a properly priced property will be more likely to give you an out because they are certain they can perform. Those agents who insist on 6-12 month marriage may be counting on wearing you down and getting the price reductions or repairs done during that listing period. Good luck, remember we are in a buyer's market.

Jack -

I am not too sure what a person from Georgia should have to do with posting on a NJ property, Some people just like to post an answer to have the "first answer". then again.. he is new to this and must be all excited about posting his ideas.

East Brunswick. I live and sell homes in East Brunswick NJ. Is there a market fopr 500k homes.. yes. There are buyers out there and they are looking. Value is value and we do draw a good base of knowledgable people to the area looking to move her for the schools and easy commute into NYC.

As far as paying 6% commission versus what other agetns will charge? Well, call me in and see what I do along with Orange Key Realty. Make sure your agent is selling homes, the company is advertising and has an internet presence. You will be able to see what direction an agent and company is going with the sale of your home. Make sure you interview 3 agents and make a descision based upon facts.

Looking to sell FSBO?

When buyers or sellers are surveyed about the reasons why they would attempt to buy or sell a home without the assistance of a Realtor, their answers are always the same; "to save the commission."
Time and again, this is the response, regardless of market conditions or trends. This can be a decision wrought with pitfalls. For sellers, we have discussed many of the advantages to utilizing the professional services a Realtor can offer. If you aren't employing a real estate professional, buyers often assume there's money to be saved by them!

However, there is another issue to explain; there is only one commission to be saved, and two entities seeking the same savings. The fact is, the real estate commission or fee is not so easy to put a finger on anyway because it is a negotiable provision of the agency relationship established between the seller and his Realtor at the time a listing agreement is signed. Often it is based on a percentage of the sales price. And, since the seller traditionally is the one who actually pays the broker, it would seem that he would be the one to "save." Not so in the eyes of the buying public.

Frequently private buyers will look to deduct what they feel would have been the commission amount, right off the top of your asking price! So, now after all your effort and investment in marketing and advertising, in order to try to save some money for yourself, you are being asked to take less!

For buyers, unless there is money to be saved by them, there is absolutely NO reason to buy from a for-sale-by-owner


John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

JSacktig@orangekeyrealty.com

Orange Key Realty - "The Fastest Growing Real Estate Company in New Jersey"

Oh... and let me add that the fact your home is custom makes it particularly valuable to enlist the help of an agent. You will (I assume) want to get back as much of your investment as possible and, therefore, it will be necessary to make sure it is marketed correctly. Otherwise, your home will seem to be (to the uninformed buyer) much like any other home in the area and, therefore, not worth a dime more! But you put so much into it and you will want to get the same from it. You don't want it blending in.

Hi Jack,

I love Bryan's answer below and don't really have much to add. I guess one of the biggest misconceptions in real estate is that the job is done when the house has been marketed, a buyer was found and the offer is accepted. I wish things were done at that stage because all my headaches and pains would be gone as well. At that time you benefit the most from having a real estate professional work with you in making sure the deal stays on track and we actually deliver a closing. And believe me, these days we have to work to get that accomplished.

So in my humble opinion I would say that it would be very smart to pay a professional to help you to get your house sold as quickly as possible with as little headaches as possible.

Sincerely,

Jacobus "Jack" Vollenberg
RE Appraiser - Vollenberg Appraisers
Asset Manager - ERA Statewide Realty
Vollenberg@iname.com
Cell (973) 590-0142

The question isn't whether there is a market, the question is "what will the market bring?" Dwell on that for a while and understand the difference before you proceed with selling your home. It's that important.

Next: Many consider 6% standard commission. Bear in mind that there is no such thing as a standard for commission. This is by law.

Further: Is it smart to pay this commission? Well, you would expect me to say yes, of course, but let me tell you why. Here's the short version: Ask yourself "Am I against paying a professional or am I looking at my bottom line?" If you have something against agents, then by all means, take a shot at yourself! We welcome you into the fold! Because when you sell a house yourself, you ARE taking the place of a professional; like it or not... so you're becoming what you dispise. Frankly, I wouldn't blame you if you didn't like us. A few bad apples spoils the barrel! I don't like the bad ones either, but don't judge all by the some who make us look bad. If, instead, your issue is the bottom line, then be well advised that you will almost always come out of closing with more in your pocket if you have representation. There are MANY reasons for this, here are just a few:
1) an agent will GREATLY increase your odds of getting a fair price for your house
2) an agent will get your house sold MUCH faster, so you will pay fewer mortgage payments (part of your bottom line)
3) most of the time, you wind up paying half that commission anyway because even if you act as the "listing broker" (not legally, of couse, but functionally), you will still (99.9% of the time) wind up paying the "selling broker's" commission. So it actually becomes a question not of 6% (per your question), but actually of 3%.
4) the buyer will invariably look at you and think two things
a) this guy doesn't know what they're doing (whether it's true or not, it weakens your position every time)
b) they are not paying any commission, so why should I pay "full price"
So you wind up having to fight for that 6%, pay 3% anyway and will usually walk away tired, frustrated and settle for less than you originally could have gotten because you're sick of trying to figure out everything, so you just say to yourself "I only want it to be OVER!"

You see, there's a grand illusion propagated by these "sell it yourself" places that real estate is easy and you can do it all yourself. It was said long ago, by a very wise individual "A lawyer who represents themself has a fool for a client." It's true in real estate, also. I consider myself a professional and I know exactly what I'm doing (or would like to think so), but I know that I put myself (even being a REALTOR) in a very bad position when I sell property if I act as my own agent (which I am allowed to do, if I were foolish enough to do so). Even for professionals there are distinct advantages to calling on a colleague to list their property and you just can't change that fact.

I can't tell you the number of hours I've spent in a classroom or the time I've spent getting experience and knowledge of real estate... and even I wouldn't represent myself. This is simply because I can't be two people and there is ALWAYS an advantage to NOT being the owner when you're the agent. So if even the best (not that I'm the best, just saying that even the best wouldn't do it) wouldn't do that, why would you?

Does that answer your question?

The further away that your home deviates from the median home, the more likely you'll probably benefit from working with an agent.