Working with Real Estate Agents have an upside, as well as a downside. Here, we discuss the common disadvantages of working with Real Estate Agents.
Real Estate Agents Are Great Most of the Time! If your house is in perfect condition, you have plenty of equity, and if you have plenty of time to wait, selling your home using a Realtor will probably get you the best price. So, How Much Equity Do You Need to Have? Statistics show that an average cost of selling a home using Realtors is about 10% of selling price, or sometimes even more... That means, at least 10% right off the top is gone in fees. The 6% in Real Estate commissions, 2.5-3% in Title Company closing costs; then there is a Home Shield Warranty, and some other miscellaneous fees. Do you have at least 10% equity to cover the cost of selling? ... or will you need to come out of YOUR pocket with CASH just to get rid of your house? If you lived in your house for only a few short years, or if you refinanced recently, you may not have enough equity to pay all those fees. If You Have Enough Equity, How Long Can You Wait? Statistics show that an average "Market Time" around the country is 2 to 6 months. That means, it will take that long to find a buyer... add to this another 30 to 45 days needed to complete all the inspections, go through a loan approval and finalize the sale. On average the Traditional Selling Process will take between 4 to 6 months, so it's wise to budget and plan on making at least 6 monthly payments. CONCLUSION: If your house is in perfect shape, and your situation meets the above said criteria, selling your house through a Realtor is a valuable option! Be Smart and negotiate in the listing agreement a "right to cancel". You'll be glad you did! If after 3 months you still don't have any offers, at least you'll be "free" to explore other options! When and Why Real Estate Agents Are Not Effective!