Many people focus only on the real estate commissions savings and ignore the potential and actual cost of selling real estate
without benefit of a real estate agent.
A real estate agent can help you set the correct price for the property. Too high a price and prospective buyers will
look elsewhere. Too low and you do not get the full value of the property.
A real estate agent can help you present the property. Agents are experienced in looking at properties and are usually aware
of what appeals to buyers and also what turns them off.
A real estate agent can help you advertise the property in the MLS (multiple listing service) and elsewhere. They have experience
in what advertising works and does not work.
A real estate agent can help you negotiate the contract. For people not use to negotiating this can be invaluable. Also,
as professionals they can help you stay focused on the business details of the transaction.
A real estate agent can help guide you through the process, provide forms, publications and information necessay to selling.
Still for many people the savings can exceed the cost. This decision will be different for different people and situations.
Flat Fee Real Estate Brokers
There are some options to the pure for sale by owner approach. The most common is to hire a flat fee broker. What flat
fee real estate broker do is list your property in the Muliple list services (MLS) and other sites for a flat fee. The
fee is usually around $300 to $400. The only people who can list on the MLS are licensed real estate agents. Thus,
the majority of the public cannot list on the MLS. However, the general public has unlimited access to view MLS
listings at Realtor.com and other affiliated websites. If an real estate agent sells the property a commision
will be due. But you can offer a commission as low as 1%. Many recommend between 2-3%, which is the “market rate.”
The lowest commission you can offer is 1%
