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TIP #5 SHOW ME THE MONEY

January 27th, 2011 Leave a comment Go to comments

Show me the money!
Many people choose NOT to use a real estate agent in order to save money, but keep in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions.

For example, if you are selling your home on your own, you will price it based on the sale prices of other comparable properties in your area. Many of these properties will be sold with the help of an agent. This means that the seller gets to keep the percentage of the home’s sale price that might otherwire be paid to the real estate agent(s).  However, buyers who are looking to purchase a home sold by FSBO (for sale by owners) may also believe they can save some money on the home by not having an agent involved. They might even expect it and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save this commission.
THE BOTTOM LINE: while there are certainly popple who are qualified to sell their own homes, taking a quick look at the long list of frequesntly asked questions on most FSBO websites suggests the process isn’t as simple as many people assume. And when you get into a difficult situation, it can really pay to have a professional real estate agent, such as myself on your side.

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