The truth about commissions and the money you save when selling your home privately

for sale signMost people that choose to sell their property by themselves do so in order to save the commission. That makes sense. Who wants to pay a Realtor several thousand dollars if they don’t have to?

What many people fail to realize is that the commission is split four ways between listing and selling agents and their brokerages; they are not giving listing agent 6% of $350,000 ($21,000) to put a sign on the lawn and hold an open house. That would be a sweet deal for me!

Many people also do not understand that commissions are negotiable, especially with higher priced homes. And with the way prices have been going up over the past few years, many of us are living in “higher priced homes” now.

There is a lot to selling property, it’s not rocket science but it is complex and emotionally charged and if something goes wrong it could cost a lot of money, not to mention emotional stress.

But maybe you want to give it a try. Maybe you want to sell your home yourself.

There are companies out there, posing as real estate experts. They are not licensed to trade in real estate, have not been through any training whatsoever, carry no legal responsibility yet have the gall to refer to licensed realtors as “some Joe Shmoe agent” https://WWW.PROPERTYGUYS.COM/.  Sorry, but that’s not very professional. They promise to save you thousands of dollars by giving you the material you need to sell your home.

Here’s something you might not know. Statistics show that “For Sale By Owner” homes typically sell for 10-15% less than comparable properties listed on the market with a Realtor. Lets do the math. (10% of $350,000 = $35,000 vs. $350,000 x 6% = $21,000). My accountant would refer to that as a negative gain.

There’s more.

80-85% of those listing on those sites end up giving up and listing with a Realtor anyway. I wonder why that is.

https://canucklandlord.com/?p=146

 

**UPDATED Further Reading**

Why are realtors’ commissions so high? How to negotiate your realtor’s commission.

Can I put my house on MLS without a realtor?  No. You want to be listed on your local board.

Can I list my house for a flat fee using an agent? Yes. Be prepared to do some on the work.

 

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *