List Your Home Without Paying Pricey Realtor Fees
Selling your property can be done in a non-traditional way, but it tends to be pricey. Traditionally, you can expect that realtors will commonly take 5% to 6% of the home’s value. So at 6%, if the home were worth $100k, the realtor would take $6k of that; and then you’d have taxes and other associated closing fees.
In total, you can expect a good 10% of your home’s value to be lost in the sale itself tech-savvy when everything is said and done. That’s $10k on a a $100k property, and $100k on a $1,000,000 property. However, there’s a way around that.
You’ll likely see some diminution of the property’s total value, but you could very well save—if not directly, indirectly; either through a swiftly moved property or readily available assets. With that in mind, we’ll briefly explore five primary means of property sale in the modern world to help you decide which options best fit your needs.
The Traditional Real Estate Agent Route
This was covered in the opening. A traditional real estate agent will move your property inside three months for a 6% fee. A $200k house is a $12k payday for them; if they move four houses a year, they’re sitting pretty in most American communities. This is the way most people go, and it tends to work. That said, you will lose some money.
The more valuable your property is, the higher the price you can command, and the lower the realtor fee you can expect. However, it’s not like you can just snap your fingers and expand real estate value.
Going Through Full-Service Discount Agents
A full-service discount agent operates much like a traditional real estate broker would, but they push for faster sales, and the way they work it, they move more property quicker. Accordingly, they can offer you a discount so they’re able to snatch you from another realtor.
Usually, they’ll sell a property for a flat fee of around $3k, or a 1% commission if the property is higher than a certain amount—say $200k, but it will depend on the discount agent. This can work, but you may end up getting less for the property than you could because it’s the full-service agent’s prerogative to move property as fast as he can.
Instead of four houses at $12k a piece a year, he’s looking at moving 20 properties at $3k a year, or thereabouts, on average. So you might get lost in the shuffle, or you may not get as much for your home as it’s worth. This can work for you, but be advised when you pay less, there’s a reason for it.
Flat Fee MLS Companies
MLS stands for “Multiple Listing Services”, and such companies work like this: you pay a flat fee of $100 to $300, depending on the service, and they list your property in multiple areas.
Sometimes this may extend beyond the web, but that’s not always the case—it will depend on the MLS service. Usually, you’ll have a profile up months and nobody will see it. However, it can work. The thing is, it’s not guaranteed, and if you don’t move your property using such service, you’re out a few hundred.
It’s almost better just to list using free services online; but the truth is, things will differ per community. The larger the community, the more likely your listing will be found. With smaller communities that aren’t as tech savvy, this can be iffy. Even so, your home is available to a broad market of potential buyers through the MLS service, so that could bring in non-local buyers.
For Sale By Owner
This is a good way to go if you’re motivated and know who to talk to. However, if you’re neither motivated nor properly informed as pertains to the best strategies, you may be giving yourself a year-long headache. Even so, do some research and arm yourself with data. You might also explore this resource, a robust “how to list your house for sale” article.
Social media is the modern version of posting a “for sale by owner” sign in your front yard and looking to move the property. Many haven’t realized it’s entirely possible to list your house without an agent, but there’s a balance here. If you’re wise, going with a group like “ISoldMyHouse” saves enough time that price differential is easily overcome.
Think of it as a used car dealer. You could list your car on Craigslist, have a bunch of shifty, sketchy individuals traipse by and waste your time for three months without buying, or just sell the car to a used car dealer at a discount immediately, save yourself the time and hassle, and turn the cash into a new vehicle.
As a used car dealer will sell you at a price one or two grand under what you could generally command for it, online sites that offer cash for properties will generally offer you something slightly under what you could otherwise sell the house for. But a realtor might do the same thing to move your house quicker so they get their commission—accordingly, are you losing out?
Making The Best Move
Remember, realtors are driven by commission, and listing options that aren’t centered around self-motivation are driven by getting enough people to pay flat fees to keep them in business. Sites that buy up houses after a brief appraisal will put cash in your pocket immediately, and the amount you get may not be more than you could have gotten otherwise.
All properties have their unique idiosyncrasies, and different markets work according to the local situation. However, generally, selling the property yourself won’t work as well as it could, and realtors—full service or otherwise—have their interests at heart over yours. MLS sites won’t generally be as effective, and social media is just the “for sale by owner” method but digital.
So with that in mind, companies that buy houses to turn them around have much to recommend them. In the end, you’ll have to weigh your options and choose those which best match your situation. Hopefully, this writing helps you get started in the right direction!