For Sale by Owner (FSBO)
The decision to sell your home as a FSBO, or to find a Realtor to do the work for you, might seem like a tough one. On the one hand, by selling your house on your own, you don’t have to pay anyone else a cent of your profit. In fact, the number one reason people choose to sell their home on their own is for this exact reason—to avoid paying a commission.
So, let’s take a look at what exactly a Realtor’s commission pays for, and see if it’s worth it.
When you hire an agent to help you sell your home, keep in mind that their commission is actually an incentive for them to work their hardest, since the more your house sells for, the more they get. Helping you sell your home for the best price possible is in your best interest and the Realtor’s best interest. So, you can be sure that your Realtor is going to pull out all the stops for you. Moreover, Realtors depend on word of mouth to garner new clients. So, treating you unfairly, being lazy, or dropping the ball, are not in their best interest either.
Many people are afraid that a Realtor is going to want too big of a commission, and that it’s too much trouble to make sure they are getting a fair shake. The truth is, Realtors representing buyers basically charge the same amount, usually about 3% of the sale, depending on location and other variables, while seller’s representatives receive almost as much (on average). Again, Realtors depend on customer satisfaction to stay in business. They can’t afford to alienate potential customers by charging a commission way outside the average. This also means you can focus on looking for a Realtor that you really like and respect, rather than a price tag.
Selling homes is what Realtors do. Their income depends on their experience, their knowledge of market trends and comparable prices of homes in your area, their ability to negotiate and network, and their ability to tackle the selling of your home without the emotions you inevitably bring to the table. This last part is a much bigger deal than you’d think. People often take for granted just how grueling and emotionally exhausting this process can be. By hiring a Realtor, you are free to experience the necessary emotions of this major transition in your life, without compromising your judgment and, ultimately, the best possible scenario for selling your home.
In the end, a Realtor’s commission really does pay for itself.
