We often hear people complain about paying a real estate commission when they sell their home. Let's face it, the amount can be substantial and take a chunk right off the top of your proceeds. Why do you pay it? Well, the truth is that you don't have to. You have every right to sell your home on your own and avoid paying commission. Many people have tried this and some have succeeded and ended up with a positive outcome.
Many people also have the perception that Realtors scoff at those who try to sell their own homes. Actually, we feel an empathy due to the fact that we understand just how complex the regulations and process can be and realize that many times, people do not fully understand what they are getting into in a for sale by owner situation. We are not jealous or worried about the lost business. We like positive outcomes and like to see homes sell and pass on to the next owner. This is a sign of a healthy market whether the home was sold by us or by the owner.
In a time when some people seem to revel in getting something for nothing, it is important to take a look at what you get for that commission. Perhaps Realtors have not done a good job of educating the general public about what exactly they do. A seller sees thousands of dollars go out of his/her pocket at the closing. The perception is somehow that this is "easy money" for the Realtors. When the reality is that the commission is split between the listing and selling brokers (usually half and half in our area) and the Realtor's many expenses come out of this as well. The cost, for the successful brokers, is high. Keeping a deal together and navigating the paperwork and regulations in order to protect your clients interests can be stressful. Most successful brokers work 60-80 hours a week. They work weekends and holidays. They do it because they love it.
Before we all begin complaining about the ever growing number of regulations, we need to realize that state legislatures and Real Estate Commissions exist to protect the public interest. While these regulations can become overwhelming, we all need to accept that every time a new rule or regulation is put in place, chances are there were issues and problems arising that made it a necessary step in the effort to protect the public. This may be frustrating at times, but it is the reality.
Please understand that you do have a choice. There are probably more options for home-sellers at this time than there have ever been. You can choose to sell your home by yourself, perhaps with the help of the Internet. You can choose a discounted firm or flat rate firm to offer you limited assistance. You can choose a broker with a discounted commission rate, or you can choose a full service broker. Selling a home is not a "one size fits all" event. Different approaches will work for different people and situations.
When deciding how to proceed with the sale of your home, consider all of your options and what you believe will work best for you. Gather information and interview potential brokers. Consider the ultimate costs and make the best decision you can with the information you have gathered. When discussing commissions with a broker, if you feel that the value proposition they have presented to you is worth the commission amount they charge then it sounds as if you will get your money's worth. The commission is the broker's salary, it is their livelihood. If a broker is too quick to cut his/her commission in order to get your business, you need to wonder how effective of a negotiator will he/she be when it comes time to get you the most money possible for your home? If they are so quick to give up their own money, how hard will they work to protect yours?
The most important thing to remember is that the decision is ultimately yours. You do have options and with a decision this big, you should take the time to do a little homework to be able to decide what will work best for you.
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