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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! What you are about to learn will reveal some surprising secrets of Real Estate business... Even in some of "the hottest" real estate markets around the country, thousands and thousands of listings expire every month. The following "eye-opening" facts may give you some answers... A real estate agent gets paid whether your home sells in one week or one year. This creates a motivation to do the least amount of work possible on the already "secured" listing, but to focus on securing more new listings. When a real estate agent lists your home, they put it in the computer with thousands of other houses. Then they sit back and wait for another agent to find and qualify a buyer. And wait. That’s the way the game is played. Do you have any idea how many houses an agent is trying to sell? It's safe to say more than just one! Most agents have houses all over the city that they’re trying to sell at any given time. This means the attention your home needs might not always be there. Some agents will let you list your home for an inflated price just to please you and get your business. Then when it doesn't sell they suggest you lower your price to something more "reasonable" and marketable. They get your business on the front because you think you might get your price. Your interests are at risk, not theirs, while your home sits on the market unsold. "...some unethical agents may suggest selling prices that are too high solely to obtain a listing. Instead of competing based on a professional approach, they appeal to an owner's greed." (This is an excerpt from "California Real Estate Practice", a required course for all prospective Real Estate Agents by the California Department of Real Estate.) In their highly competitive business, agents use different sales tricks ("games") to secure a listing. Higher sales price is one of them! Watch out! "Dirty Little Secret" - the agent's sign in your yard is a free billboard, advertising the agent’s services to the whole neighborhood! No wonder why so many agents discount their commission to only 4% (even 3%), instead of an average 6-7%. They make less on your house (and do less work), but at the same time they get a few more listings off of your sign where they charge full 6% commissions. The longer your house sits unsold, the more free advertising they get; the more new customers they get; the more money they will make. So at the end it works great for them, but not for you! What if you have to MOVE and your house has not SOLD? If this happens to you: Are you going to leave it vacant? How long are you going to make TWO house payments? How long can you afford to make TWO house payments? If you're like most people, that can deplete your savings quite quickly! What most sellers don’t realize, is that to an agent, with hundreds of other listings to handle, it won’t make any difference!
Creative Home Solutions Now may be able to offer you more money than you’d net if you list it with a real estate agent. And the sale can be closed on the date of your choice. With no hassles, no showings, and no risk! But, if you’re looking for an above-market price, a real estate agent is your best bet!