Real Estate Agents?

Question

So, how much does it cost to hire a real estate agent, and the second question I have is can someone sell their home without a real estate agent? Is it a wise decision?

What are the types of things they would have to know if they wanted to sell their home without a real estate agent and really profit from it?

Help me out here....thanks

N/A N/A · Answer

Rkurly14

In a nutshell,  If you are a buyer - you really don't have a say in how much the real estate agents makes - bottomline.   The sellers agent already factored the commission into the price of the home.

If you don't like the price of the home, and offer lower then the asking price...you are affecting:

- what the seller wants to net
- and what the real estate agent wants to make

Your agent (buyers agent) will split the commission with the seller's agent - that is why many listing agents (seller agent) like it when you  as a buyer want to purchase a home and you don't have an agent with you. (They don't have to spilt a thing)

BOTTOMLINE  Rkurly14 -

Unless someone purchases the home  (NO ONE CAN GET PAID)...so in essence - the buyer is paying everyones SALARY (COMMISSION).

IF you are a seller - you will save money not having to pay a commission to a real estate agent...however, your home may not sale as fast.  Unless you plan on marketing your home yourself and that is very time consuming and you can't network like the MLS system can.

So you must consider this....

If you still owe on your home and pay the mortgage note on it...without a real estate agent - you are looking to pay that mortgage note (a few more times.

So weigh your options.

I hope this helps

N/A N/A · Answer

If you are in Kentucky, I can give you more information about this -

Katie

Seraina Aguayo · Answer

It is common for clients to ask me, “Just exactly how is a Realtor compensated?”  It is quite interesting how many people out there do not know.

When a buyer hires a Real Estate Broker as their personal agent, there is no compensation provided by the buyer.  The “buyers broker” will be compensated by the seller once the closing takes place.

When hiring a Real Estate Broker as the seller, the broker becomes the “listing agent” or “seller’s broker” and the broker will likewise be compensated upon the sale and close of escrow of the subject property.

In both situations the Seller is covering the cost of both the “listing agent” and the “buyer’s agent” brokerage fees.

The amount varies depending upon the percentage agreed to between the listing agent and the seller.  For instance, if the Broker agrees to List a seller’s home for sale for a 6% commission, the listing broker may receive 3% and the remaining 3% may provide compensation for the agent who brings the buyer.  Of course in any transaction, these percentages may vary as well as the distribution ratio.  Keep in mind that each agent has to divide that 3% (in this example) with their brokerage and will only retain the balance after their desk fee or “split” with their brokerage firm is divided.

and the second question I have is can someone sell their home without a real estate agent? Is it a wise decision?

To answer this question, yes absolutely!  A seller does is not required by law to hire a real estate agent to sell their home.  However, I would recommend hiring an agent and here are some of the reasons why:

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime with most transactions exceeding $100,000. If someone has a $100,000 income tax problem, would they attempt to deal with it without the help of a CPA? If someone had a $100,000 legal question, would they deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

The process of a real estate transaction is complicated.  In most situations, the purchase or sale of real property includes disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, contingencies, multi-page government mandated settlement statements, market research, property research, etc. An experienced guide throughout this process can save a buyer or seller valuable time and money.

I could go on but I have already taken up quite a bit of space.

In regards to your last question:

What are the types of things they would have to know if they wanted to sell their home without a real estate agent and really profit from it?

I would have to say that it would behoove the seller to know a bit about how to market the property.  When you are selling a home, exposure is absolutely crucial, so knowing how to obtain a fair amount of market exposure is vital and usually requires experience and internet savvy.

The National Association of Realtors conducted a recent study that revealed the median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200; there were no significant differences in the types of homes sold.

In conclusion, while some home owners are motivated to save on paying a commission, the difference speaks for itself.

I have to agree with jlabelle, it is wise to interview at least 3 Realtors to determine which individual is most qualified for the job.

Here are some questions you could ask the Realtors:

1.	How long have you been in residential real estate sales?  
2.	Is this your full-time job?
3.	What designations do you hold?
4.	How many homes did you and your company sell last year?
5.	How many days did it take you to sell the average home and how does that compare to the overall market?
6.	What types of specific marketing systems and approaches will you use to sell my home?
7.	Will you represent me exclusively or both buyer and seller?  
8.	Can you recommend service providers such as mortgage lenders, home inspectors, contractors, etc?
9.	What is your business philosophy?
10.	What systems do you have in place to keep me informed of the progress of my transaction?  How frequently?  Using what media?
11.	Can you please give me the phone numbers for your three most recent clients?

I hope this is helpful! :D

*This information is designed to provide information about the subject matter covered. The accuracy of the information is not guaranteed.  This information is offered with the understanding that the author and/or publisher are not engaged in rendering legal, accounting or other professional services. If legal advice or other expert  assistance is required, the services of a competent professional should be sought.

John LaBelle · Answer

There is no set cost to hire an agent.  Agents set their own fees.  If you go this route, I'd suggest interviewing 3-4 before you sign up with one. Make sure you ask them about their experience, how they would go about marketing your properyy, and what they charge.

As for selling it yourself, make sure it's on the internet and you have at least 6 photos on the online listing.  Reasearch shows over 75% of buyers start their search on the web.  If you want to try to sell it yourself, there are some websites you can use.  forsalebyowner.com and isoldmyhouse.com are two that come to mind.

As for what you need to know, it will vary from state to state.  For instance, here in MA you are required to have the fire department come and check the smoke detectors.  That is not needed in NH.  Depends where you are as far as what inspections are needed.

I hope this helped.  If you are in MA or NH, I will gladly help you out further.