Many people have heard that you cansave money by selling your house by yourself, without using a broker.This is because typically brokers earn about 6% of the selling priceand sellers feel that if they do it on their own that money could besaved.
Fora select few of us - who really know the ins and outs of real estate- this may be true. However, for the majority of us, hiring a broker iswell worth the money you will pay for it. (Furthermore, because thebuyer knows you are saving money by not hiring a broker, he or she willincorporate that into their bid as well, meaning you don't end up withthe money anyhow!)
A broker has many responsibilities that you may not think about before choosing to do it on your own. A broker will:
- Establish a fair asking price for your home.Brokers are privy to a vast amount of information about sales in yourarea that you may not be aware of: price per square foot, schoolrating, potential liabilities, etc.. They have also been educated toevaluate things like the condition a home is in, what items are uniqueto a home in that area and could, thus, raise the cost, what themarket is like at any given time...
- Get it know that your home is for sale. Relyingon your own word of mouth when selling your home is difficult to do.Chances are, you will not run into too many people looking to buy a newhome on an average day. Your broker already has realationships withother agents that he or she can contact immediately. Also, your brokerwill be able to publish your house in MLS, or Multiple ListingService, a listing (almost always computerized) of all the propertiesfor sale by Real Estate Brokerages in a given geographical area.
- Handle all advertising and promotion.Your broker will be responsible for all of the details required whenpromoting a home and will have the resources to do it well.
- Handle all of the details of showing your home.This is not just a matter of being around to show your home toprospective buyers. You will need to field many calls, handle multiplevisits and know how best to present your home to a potential buyer.Also, a broker can save you a lot of time and hassle by weeding outbuyers that they know are not interested in your type of home or do nothave the financials to actually buy it.
- Refer you to reputable sources for legal councel, appraisals, inspections, financing, etc.You will find that there are many more people involved in selling ahome than just the buyer, seller and broker. It is good to know thepeople you choose have been reccomended by someone you trust and haveworked together in the past. This will ensure a seamless process andless stress in the long run.
- Negotiate!This is the most difficult part of the transaction for most people.Determining what a fair price really is is hard enough, but convincingthe buyer of that is a whole other story. You want to make sure you donot lose a good bid due to lack of knowledge or proper communicationskills. You also do not want to settle because you are not comfortablepushing back. This is the real estate agents job - he or she istrained in this topic and practices every day. Leave it to theprofessional!
So youare convinced you want to use a broker but you don't know where to goto find one. Ask friends. Interview a few. Look for brokers that reallyknow their stuff. Give them a tour of your home and see how theyrespond. Ask questions about other sales in the area. Ask them whatother homes they have sold in the area.
Finally,make sure you are comfortable with and trust the person selling yourhouse. This is a big project and you are a team, your relationship willmean a lot down the winding path on which you are about to embark.
