To Use Or Not to Use a Real Estate Agent?

To Use Or Not to Use a Real Estate Agent?

With the current state of the economy and the wild growth of the Internet, many home owners are considering selling their homes themselves. Many think that selling a home is a simple process however, real estate agents do earn their commission. A real estate agent will provide information and expertise on the market and how the sale process works. Your agent will help sell your house faster by advertising it widely and he will also assist in negotiating the best possible price and ensure the closing of the sale is done smoothly. However, a 5% commission rate may seem steep to some home owners. 5% of $300,000 is still $15,000 and many owners find the prospect of parting with that money unbearable. Here are a few things to consider when choosing where to sell your home by yourself or enlist the help of a real estate agent. One of the most important aspect of selling any home is market knowledge. To sell your home rapidly and for a profit you must know what it's worth. Listing your home even 1% above its market value may damage your chances of a quick sale and you may end up with a lower final sale price than the house should have fetched. This is where a real estate agent comes in handy. Your agent will provide with a list of comparable properties that have sold recently in your area and will help you determine a reasonable selling price for your home. However, with the current wealth of information available on the Internet nowadays, for sale by owner (FSBO) are becoming more and more popular. If you know how to access this type of real estate information, going the FSBO route may be an option for you. A real estate agent will place your property in a database MLS, a Multiple Listing Service. This database is accessible only to registered real estate agents. This is where an agent will find current properties and market information as well as an archive or all past sales. Using the MLS is only one of the steps in your agent's arsenal to advertise your property to potential buyers. Advertising, websites, open houses are some of the other tools available to your agent. Some may argue that a home owner can do all this himself, except for the MLS listing. Just keep in mind that the advertising, open houses, etc are included in your agent's commission whereas you would need to pay for these yourself in a FSBO situation. Next comes the negotiations and closing process. Some individuals are natural negotiators and enjoy the process while others may find the whole process highly unpleasant. You need to determine if this is something you think you will be able and enjoy doing. The final step of the real estate transaction is the closing. Each state and country has a complicated set of laws outlining how a real estate transaction should be performed. Deposits must be made at the right time and in the correct amount in an escrow account. Property title must be investigated. There are a number of details that must be addressed before a transfer of ownership can be completed. Your real estate agent can assist you throughout the whole process. On the other hand, there are many books available, Internet sites, and low-cost 'seller assistance' businesses that can help demystify the home selling process. The question is, do you feel confident that you can handle all the aspect of the real estate transaction yourself or would you be more comfortable enlisting the help of an experienced real estate agent.