Should I use an agent or sell the home myself?

Buying or selling a home is likely the most important financial decision we make and deciding whether to use an agent or do it ourselves can be a very detrimental issue. There are pros and cons to both and they should be carefully considered.

Real estate agents typically make 2 - 3% for listing your home and representing you as the seller (listing agent). They are responsible for disclosing all the various issues regarding your home and in most cases have the resources to get your home seen by a great number of interested buyers. They utilize the “Multiple Listing Service” (MLS) as the main means for advertising your home but may also have local newspaper and other ads in which they place the homes information as well. They schedule and attend open houses, broker previews (where all the local real state brokers preview the home) and handle all the paperwork. Their fiduciary responsibility is to you, the seller. This is strictly for listing the home and representing you in the transaction. It does not include fees for finding a buyer.

The buyers agent typically earns 2 - 3% also. This can also be the sellers agent and in cases where this is so the agent has dual responsibility to protect you as the seller and an equal responsibility to the buyer. The agent must disclose this to both parties. If you, as the homeowner, find a buyer you can eliminate this fee (as long as the buyer has no agent and agrees to that in writing). This should encourage homeowners to get more involved in the selling of their home. Running inexpensive ads in your local papers is one way to attract buyers yourself.

On the other hand, selling the home without agency representation can save you up to 6%. However, there is a great deal of risk that goes with this such as proper disclosure, contracts, and other legal issues that could leave homeowners open to litigation after the fact if not done properly. There are services that will provide some of the agency coverage at a reduced or fixed rate. These can be productive but will require the homeowners involvement for open houses, advertising etc. Many of these services charge a flat fee in advance rather than out of closing proceeds.

In closing homeowners need to decide how involved they want to be in the soliciting of their home. If you decide to sell yourself I suggest using a service that will provide all the right forms and assist with the paperwork. If you decide to use an agent I suggest driving through your neighborhood and take the names and numbers of the agents working that area. Typically you will find their are certain agents that are successful in your neighborhood and as a result they get the majority of the business in that area. They specialize in your area and by having multiple listings attract more buyers in general.

Popularity: 2% [?]