I have a home in Union County that's probably worth $400,000. If I use a REALTOR (R), I have to pay 6% commission, right? That's $24,000! I'm going to try to sell it on my own first. What's the harm, right?
- FSBO Freddy
First let me congratulate you on reaching out to ask this question. As a Real Estate Professional it's my job to stay up to date on what's happening in the market, keeping track of all the different processes that take place during a real estate transaction, and as a licensed REALTOR(R) in the state of New Jersey I am required to take 12 hours of continuing education every 2 years just to maintain my license to sell Real Estate. But to better answer your question, commissions in NJ are negotiable, but there are actually benefits to the seller to list at full commission or even higher in some cases.
Let me ask you a few questions Freddy... If you were being sued for $400,000 would you represent yourself in court? No, you'd hire a lawyer. Suppose that you needed an operation, would operate on yourself? No, you'd get the best surgeon that money could buy. Let's say that the IRS is doing a full audit on you... Wouldn't you hire a Certified Public Accountant to represent you?
So if you'd hire the best professionals to protect you in court, the operating room or against the IRS, why would you try to represent yourself in selling your home, the most valuable asset you have. You'll be happier that you hired a professional to represent you in getting your home sold.
According to USA Today, there is data that shows that homes sold by REALTOR(R)'s sell for 21.49% higher than those sold as For Sale By Owners. So paying that 6% commission could actually make you another 15.49% in your pocket.