Thanks for posting this question . We see quite a few just like yours.
So, just reading the question, it appears to me that you are assuming that the main factor in getting your home sold for top dollar, in your time frame, and with your terms, is the amount of commission paid, is that right?
To put it another way, the lower the commission rate , the more you put in your pocket, correct?
I have some ideas for you to consider:
See the link below:
I am assuming that your home is at least the average listing price of $477,288. So you are willing to pay a buyer's agent 2.5%, you'll have to pay for the MLS fee and do all your own marketing, so let's say you are trying to save 2%, is that fair? or in your case, $9,545.76.
According to the Trulia link, your market is declining 4.9% in the last 12 months, or 0.4% per month.
Also, there were 70 foreclosures with a current listing inventory of 330 homes for sale. So that probably means you will be competing with foreclosed or bank-owned homes.
So, plan A is to save $9,600 with you in charge of everything. Let's say that you do all your work, in a month, you put it on the market. It's on the market the normal 60-90 days, then you have an accepted offer. Being optimistic, with no problems with appraisal, inspections, etc., you close escrow in another 60 days. that means you move in February, does that work for you?
If the numbers are correct, during the 90 days it took from prep to an accepted offer, your home lost 1.2% in value, or about $5,727.46 less. So now you really saved about $3,872.54. Was it worth it?
I monitor the performance of discount brokers and MLS Entry Only brokers every quarter based on MLS stats, compared to full service brokers. You might be surprised at their performance
1. Homes listed by discount or MLS Only Brokers sell for 2.0-2.6% less than homes sold by full service brokers.
2. The homes fail to sell twice as often (we call those "expired listings"
3. The homes take longer to sell when they sell.
I'll add a few more important facts:
On average homes that sell within the first 30 days sell closest to asking price, but only about 20-25% of homes are sold within 30 days. The rest, 75 to 80%, are sold between 30-120 or more days. Why didn't they sell earlier? Because they were overpriced. And these are homes listing by Realtors.
Note that MLS Entry Only and Discount brokers only account for about 1% of the sales (or less), so how could it be that the majority of homes are overpriced?
The truth is this: If you want to sell your home for top dollar, then you need a Realtor that can do three things very well:
1. Help you properly prepare the home for sale. They know what buyers want, and what they don't want. Spend the time and money highlighting the features in your home that will show the most value to buyers. That saves you time and money. And you don't have time...you are losing $1,909.15 per month, or about $450 per week.
2. Know value trends. Your market is declining. So a property needs to be priced slightly below market in order to sell for more than market.
3. Are good at negotiating...that means with you, the buyers agent, the appraiser, everyone.
The Realtor I mention above is probably in the top 5% of your market. However, how do you know when you are talking with a 5% Realtor, or one of the 95%, and of all Realtors 70% are part-time. so how do you know?