Realtors are the most common way to go when selling a home. According to NAR, 89% of sellers were assisted by a real estate agent. It’s easy to understand why. Agents relieve a large portion of stress related to the selling process and deal with a majority of the paperwork. There are, however, some dirty secrets within the industry. Some agents are more concerned with their own self-interest (commission) over getting you the best house. Here’s a look at the good and the bad of real estate agents.
You’ll make more money off your home!
Realtors, on average, get the seller $40,000 more vs homes for sale by the owner.
Realtors specialize in selling property quickly. The faster the sale the more money they can make. A typical realtor shaves off about three week of time on the market. That’s two weeks less of stress and uncertainty. Also, the longer a house is on the market the more buyers start to think that there is something wrong with the property. Not good.
Speaking of stress, realtors take care of all that messy paperwork. Avoid hassles, and more importantly, avoid mistakes. When you are dealing with hundreds of thousands of dollars the last thing you want to do is overlook the details.
Related: Why Go Off-Market With Your Home
They Show You What They Want
There is no law that says agents have to show you every home. They may try to steer you towards homes that THEY want to sell instead of what you want to buy. These could be homes that have been languishing on the market or perhaps offer a bigger commission check. Make sure to take control and spell out the homes you want to see.
Real estate agents tend to work with the same inspectors again and again, which creates a certain level of loyalty. This could mean the inspector “misses” a few details about the home in order to sell it faster. Make sure to do your own due diligence!
Agents want to sell your house fast. The time it takes you to negotiate a few thousand dollars off the house doesn’t benefit the realtor’s bottom line. Therefore they may encourage you to sell at a lower price just to get the deal done. One statistic we found online said that realtors tend to get 3% more for their own home verses when selling for a client.
The key takeaway from all of this is to take a hands on approach when selling or buying a home. Most realtors are going to be honest and have your best interest at heart. But, watch for giving them too much control as you are the one who has to live with the consequences…literally.