Agent Advantage: Part 3

This blog is my third of three reasons on why you should use an agent (me) to sell your home. If you recall, my first blog on this topic was safety. This month I want to finish the series with: pricing your home, commissions, inspections and appraisals.

Pricing your home: This is a very important step when selling your home. IF you price it too high, you will outprice many potential homebuyers that have a limit, and quite honestly with their agents, will be told that your house is not near what the comps show with the other houses in the area. So you may miss out on a ton of people who may want to look at your house but can’t afford it. Many home sellers think, “well I will ask $500,000 (or pick a number) and if I get $475,000, I’d be happy!” That is not how many buyers look at a house price. If you are asking 500k, then they assume, rightfully so, that that is what you want…Now what could happen is after 60-something days, you drop to $475k and by that time, buyers assume that you are desperate, need to get out, the property has been on the market way too long, something is wrong with it, and will ask LESS than $475k- this could have been avoided if you just listen to the pricing advice of the agent.

Commissions: Yes, they are negotiable-but when an agent lists a home for a 6% commission they have negotiated the commission that will be paid to the buyer’s broker and well as the seller’s broker. Therefore, a 6% commission is really 3% each side. The listing agent’s broker takes their portion off the top which can be anywhere from 5% to 45% depending upon the agent’s experience. The left over portion is what the listing agent can earn from which all MLS dues, taxes, signs, flyers, advertising, lockboxes, etc. are paid. Until I became a real estate agent I had no idea how expensive it truly can be for agents. The most experienced agent is able to give you a reduced commission. Otherwise, it is costing the agent to list the home. No one is trying to take advantage of you.

Inspections and Appraisals: Before the home closes, there are a couple of last hurdles that need to been made: Inspections and Appraisals. Many contracts fail due to the inspections are not favorable to the buyers, are too expensive to fix, the sellers will not compromise on the remedies, or it is just too much to do for the parties. The appraisals can be a major hiccup of which I have blogged about in previous months. If the house is lower than agreed upon price, the lender will not loan the money to the buyers. Agents help with the negotiations keeping emotions out of the negotiations.

So hiring an agent to be proactive to avoid any potential problems is worth so much more than the bottom line of how much you are paying out to make the transaction seamless.

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