Should you use a real estate agent to sell your home or try selling it yourself? Kiplinger has the answer…
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We all want the sale of our house to go smoothly. We know that somewhere between sticking that sign in the front yard and packing up the moving van, there are a lot of details that need to be handled. With these details comes stress, all bundled up in emotion. Selling a home means more than just signing on the bottom line. That’s where hiring the right real estate professional can be invaluable.
Listing with a trustworthy real estate agent that you feel comfortable with can save a lot of money and time, but also a great many headaches and heartbreaks. A knowledgeable, experienced agent understands the nuances of the real estate transaction as well as the emotions of the sale of one’s home. It takes a special understanding of what happens between the seller, or sellers, and potential buyers to keep everyone on track during potentially difficult times.
Contacting a real estate agent early in the process will help alleviate many of the problems that could arise in those first discussions about selling a house. Once the right agent has been chosen by the seller, it’s time to get to work finding out how to build a good relationship with their client. This starts with learning about their clients and what motivates them.
A homeowner may be highly motivated to sell their home quickly. For this type of imminent sale, the time-frame may be tight. Perhaps a job transfer is coming soon, or a new school year starts, or any number of reasons; some pleasant and some unpleasant. A good agent wants to know the motivation in order to better serve you. Be open and honest with the agent you choose. There is no need to beat around the bush, your agent will soon know more about your personal life and finances than you would believe. That is why choosing an agent with experience and integrity is so important.
Sometimes, a move is not imminent. A homeowner may want to test the market for future decisions. Instead of guessing, homeowners should use a real estate agent’s expertise to find out the true value of their home. It prepares them better for making decisions for the future. In other words, guessing what your home is worth is no way to prepare for a future sale of your home, or purchase of another. Your agent will want to know if this is the case so he or she can do some projecting into the future markets for you. There is no reason to ‘fool’ an agent into thinking you’re ready to list your home when you’re not. A good agent wants to help you determine the value of your home whether or not you’re ready to list.
Whether the sale of your home is planned soon or in the future, it is best to contact a qualified agent early in the process. An experienced agent will help by getting the information straight right from the beginning in order to avoid mistakes early on. The right agent will assist the seller in defining what is important during the process, provide a sounding board for ideas, and then help customize a plan of action.
Once you have interviewed several agents, asked all your questions, and finally chosen the one that’s right for you, it’s time for the agent to turn the tables and ask you a few questions. Any good agent will be sure to ask a potential client these simple questions:
- Do you need to sell your home soon?
- What is the reason you’re selling your home now?
- Will you be open to negotiation with a buyer?
- Are you prepared financially to repair items that show up on the home inspection?
- Are you listing your home now in order to sell at a future date?
- Are you pricing your house as a way to test the market for a future sale?
- Have you tried to sell your house by yourself? If so, what have you tried?
- Are there back taxes owed?
- Are there liens on the property other than a mortgage?
- Are there any reasons that would prevent you from accepting an offer, other than price?
Of course some of this information will be discovered as the paperwork is prepared, but hearing it from the seller first matters. If these questions seem intrusive, they are only designed to avoid an embarrassing, or worse, situation down the road. Be prepared to share your story; this is only a short list of the questions you will expect a good real estate agent to ask a client.
There is much more to selling a house than getting the paperwork done. An agent needs to learn first about the homeowner’s reason for selling, how desperately they want to sell, and how much they are willing to sacrifice in order to sell. All these questions may feel very personal, but a good agent will help their client understand that this confidential information is necessary in order to get their home sold as smoothly as possible.
If you’re selling a home, you’re probably considering a real estate agent. Then again, you might be thinking how much you might save by selling your home yourself.
Real estate agents have their good points, and selling a home privately is not for everyone. Before you try, make sure you read the following tips.
Should I use a real estate agent?
There are many benefits to using a professional real estate agent. First of all, real estate agents are professionals. They have training in how to market and sell your home. They can advise you on realistic prices, help you make deals, and provide general expertise.
Real estate agents also network among each other. They have access to online and offline advertising you won’t be able to use, which means they can sell your house more quickly and expose it to more people. Also, if someone approaches a real estate agent looking to buy a house, they are less likely to contact someone selling as a for sale by owner (FSBO) unless they are working as excluisive buyer agents — they will network with each other to maximize fees.
So using a real estate agent probably means your house will sell more quickly and efficiently. If you’re in a hurry, this might not be the time to mess around with private sales.
If, on the other hand, you have plenty of time, it can’t hurt to put your house on the market privately first — you can always contact an agent later if it doesn’t sell. You’ll save money on real estate fees and be able to offer your home at a lower price since everything you collect will be profit.
However, keep in mind, if a home is on the market for a long time as a FSBO, then you list it, it does take away some of the newness of the listing in the fact that it’s already been for sale for some time.
If you decide to go it alone, be sure to ask a realistic price, advertise everywhere you can, and tell everyone you know that you’re looking to sell.