Considering Selling Your Own Home?
Selling your home through a real estate agent involves paying a commission, which could be anywhere from thousands of dollars to tens of thousands of dollars. Some sellers consider the option of selling their own home to avoid paying the 5 to 7 percent commission. Selling your own home might not save you as much as you hope, and could cost you a lot of time and money up front.
You May Still Have to Pay a Buyer’s Agent
First and foremost, when selling a home, a real estate commission often gets split two ways between your agent and a buyer’s agent. You still pay the full 5 to 7 percent commission, but if buyers are working with an agent, their agent gets a portion of this commission. This means that even if you decide not to work with a seller’s agent, you may still have to pay the commission for a buyer’s agent. Your potential savings goes rom 5 to 7 percent commission to 2 to 3 percent; roughly half of what you’d pay if you use your own agent. Some buyer’s agents only work with seller’s agents, so if you don’t have your own agent, you could lose out on the sale entirely.
Logistics of Selling a Home
The logistics of selling a home involve a lot of work, and one of the hardest parts is getting your home’s listing in front of the right people. When you use an agent, your agent lists the home in MLS and takes care of all of the advertising for you. Agents also field phone calls about your home, set up showings and conduct open houses. If you decide not to work with an agent, you’ll have to be prepared to do all of these things on your own. This can take a lot of time, and you’ll probably be investing money up front to place ads and try to advertise your home.
