The idea of being completely self-sufficient is a very attractive one. We sometimes like to think that we can exist as islands and do all we need to ourselves. Others think that it is better to save money than work with professionals and people trained to deliver the services. But this approach is highly impractical. In the extremely rare cases where it’s not, it is inefficient. This is not to imply that you should not do some of the things you need to do yourself, like mending your clothes, fixing a lightbulb or changing a tire. However, where professional expertise or niche knowledge is required, for example, if you need a lawyer, realtor, surveyor or doctor, you are likely to have better outcomes when you engage a professional than when you do it yourself.
89% of home sellers in 2020 worked with real estate agents to sell their homes. This means that most people know that selling a house at your target rate is often not as easy as planting a “FOR SALE” sign in the front yard. For people who think they do not need realtors, one of the most common reasons is saving money on commission. While there are no laws or regulations specifying commission rates in the U.S., the usual rate is between 5-7% of the home sale price, subject to negotiation by the parties. Even though some are able to achieve their goals in selling their home for a good price without a realtor, most are unable to. Property that are “For Sale by Owners” (FSBO) usually sell for less than the selling price of other homes. They sold at a median of $217,900 in 2020 and signiﬁcantly lower than the median price of realtor-assisted homes at $242,300.
What you learn from a simple Google search is often incomparable to the wealth of knowledge and expertise that realtors possess as a result of their years of experience selling and buying property. The expertise that realtors offer is the biggest case for why they are crucial in helping you sell your property. They can provide you with guidance on approach, doing due diligence, spotlighting your home’s best features and making it an overall attractive buy for prospective buyers.
There are often two possibilities on pricing when it comes to pricing with homeowners – overpricing or underpricing. This is because most homeowners do not have sufficient knowledge of the constantly changing real estate market and how value is determined.
Real estate agents are able to help price your property more accurately and help you manage your expectations.
No matter how good you are at negotiating, negotiating a home sale is a completely different business. This makes them more likely to help sell your house at the asking price. Even if the buyer or their agent is skilled in negotiation, your realtor is likely to be able to match them due to their experience negotiating several houses in the past.
Real estate agents are also aware of market rates and the value of your property in the market. This allows them to know when to push back and when to compromise.
Helping clients to buy and sell real estate full time perfectly positions real estate agents to meet people and create connections that often prove useful. Real estate agents also work together to satisfy the needs of the individual clients they represent. This means that they often are aware of people looking to buy or sell property or know someone they can obtain this information from.
Most home sellers are not equipped with this kind of network or connection and real estate agents are willing to use their contacts and connections for the home seller’s benefit at no additional charge.
Selling a home is often an emotional experience. It is often difficult to give up or make changes to a home which holds many valuable memories. In some other cases, a home seller’s decision making might be tainted by emotion. Because realtors are often removed from the factors or events that make the home seller emotional, they are able to guide them to make objectively beneficial decisions or take steps that they might otherwise have been unwilling to.
Home sellers and prospective buyers might struggle to reach an agreement because of their emotions or where they each stand. Real estate agents are often the best equipped in these instances to mediate between both parties and help them come to a reasonable resolution.
We sometimes underestimate the value of the services offered by professionals because we do not understand them. There are several steps a real estate agent takes before closing a deal. Visiting the property, identifying selling points, engaging a skilled photographer to capture the property in the best way possible, contacting other agents or other clients to pitch the property to them, be present during inspections, follow up with and negotiate with prospective buyers.
Adding all these to all the other things you have to do on a daily basis without the expertise and resources that a real estate agent does puts you in an unnecessarily stressful and inconvenient position. This might explain why many homeowners hurriedly sell to the first serious buyer when they could have gotten a better offer.