It's a Seller's Market, Why Should I Use a Real Estate Agent?

By
Real Estate Agent with Jeff Fritzson Real Estate, Ebby Halliday Realtors 0629874

Many people do not understand what a good Realtor® does for you when selling a home whether that be in Frisco Texas, San Jose California or Tampa Florida. When you think about it what is so hard about selling a home in a seller's market? I mean really all a Realtor does it get you into the MLS and then it pretty much sells itself. And for this you want a 6% fee and sometimes even more? I think I should go into Real Estate. These words are not uncommon to hear from consumers, although you will not hear them from my clients. 

Financially Beneficial

The number one reason people chose to not sell a home with a real estate agent was to avoid the fee or commission. 46% of people who were selling a home by themselves (FSBO) did so to avoid the fee or commission. In fact only 9% of home sales were sold by people without the assistance of a real estate agent. When looking back at FSBO sales versus agent assisted sales the NAR found that the average sale price for FSBO was $184,000 compare to $230,000 for an agent assisted sale. In addition, almost 1/3 of the FSBO sellers did nothing to market their homes and more than 2/3rds of them did nothing to attract or provide an incentive for buyers. 

The bottom line is that in most cases, selling your home with a real estate agent will allow you to net more profit than if you sold it yourself. This is considering that you will sell your home faster and at a higher price than you will on your own. When you start considering the additional softer costs, such as reduced risk, time spent working on the process, and the harder costs of your own personal advertising and marekting, then the business case to utilize a Realtor gets even stronger. 

What does a Realtor do?

A Realtor will help you with the three Ps of selling a home: Preparation, Pricing and Presenting. Without these three Ps, you may end up with many other FSBOs who had a different three Ps: piss poor performance.

Preparation

A good Realtor will guide you on how to properly prepare your home for sale. You will be provided information and recommendations on changes you may want to consider with regards to staging, curb appeal, de-cluttering, repairs, etc... These are the things that can easily make the difference from someone getting out of there car to look at your property or simply driving on ahead to the next home for sale. 

Pricing

Please realize that a Realtor wants to get you top dollar. The more you sell the home for the more money a Realtor makes. However, over pricing a home does  no one any good at all. Be aware of the Realtor who promises to sell your home at any price. The market and your preparation will determine the price you will most likely sell your home. Understanding the current market conditions, knowing the local inventory (your competitors,) and being aware of how much homes are appraising for in the current area will be of more value to you properly pricing your home than anything else. We do this for a living and track this information daily, do you?

Presentation

Are you ready and comfortable to let strangers enter your house? Are you sure you want that next person who answers your Craigslist advertisement in your home? Presenting your home is part of selling your home. If you can't show it you can't sell it. How much do you know about qualifying buyers? Are they pre-approved or pre-qualified? What is the difference? How do I protect my belongings while I have people traipsing through my home? These are all questions a Realtor knows how to address and many more.

Marketing

Yes the MLS is one area to market a home but there are many others. A good Realtor is going to arrange to have your home photographed at no expense to you. They will create website(s) or at least pages for websites where your home will be advertised not only locally but nationally and internationally. They have access to agent networks inside their offices as well as through their own  personal networks. Many of them understand how to utilize social media and other areas to attract buyers to your home. There is a cost to this infrastructure which as a seller you do not pay. In fact you do not pay for anything unless your home sells. 

Documentation

In today's world, real estate is no stranger to litigation. When selling your own home you are not excused from knowing all the legal forms and processes that must be followed. How would you like it if three years after you sold your home the buyer came back and sued you for something you inadvertently left off your seller's disclosure (if you don't know what that is then you certainly want a Realtor to help you.)  

Coordination and Scheduling

Understanding the home buying and selling process is very important to protect you financially and legally. Scheduling appropriate meetings and calls to keep the entire process moving forward is another area where a Realtor should excel. Coordinating the many different parties involved including other agents, principals, brokers, inspectors, tradesman, title, lenders, and the list goes on and on is a daunting task. Are you ready to take on that responsibility perhaps multiple times if for any reason the first offer does not pan out?

Real Estate is Easy

Do you still think real estate is easy? Sure in a seller's market it may appear that this is an easy business, but maybe it seems easy because you saw a Realtor simply made it look effortless. Yes there are those of us who can ensure you have a great experience and make it lok easy. Yes there are a lot of moving parts and yes each one of these offers different risks and rewards.  Without the real estate agent you get to do all these things on your own. Are you ready to tackle this challenge? For more on selling your home you may want to look at the another post.

However, before you think of taking this challenge on yourself, remember what we are trying to answer: Why should I use a real estate agent in a seller's market?  Remember what you are trying to achieve: you want to sell your home for the most profit in the least amount of time with minimal risk. I think you just answered the question. 

My client's get to see this firsthand. They work with me because the know when you are one of my client's: Your Success is My Focus

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Christie Lane Craven 12/30/2013 04:52 AM
  2. Lynn B. Friedman 12/30/2013 10:36 AM
  3. Praful Thakkar 05/06/2016 12:33 AM
Topic:
Home Selling
Location:
Texas Cochran County
Groups:
Active Rain Newbies
Real Estate Rookie
Local Expert
Bananatude
Inman News worthy Blog Posts
Tags:
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finance
selling a home
sellers

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Rainmaker
299,185
Jeff Fisher
RE/MAX Fine Properties - Scottsdale, AZ
RE/MAX Fine Properties

Great post for our continued education process of FSBO's. Thank you.

Dec 29, 2013 10:30 PM #29
Rainmaker
2,422,669
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I caulked a window one time and it looked worse after I got done with it. Yes, it was caulked but in the world of acceptance....NEVER. My wife had someone come in and take my work and do it right...You need professionals for certain outcomes..Good post

Dec 29, 2013 11:27 PM #30
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Laura - Thanks for joining in the fun.

Hey Brian - nothing like hitting a few wrong notes to shake things up.

Hello Jeff - sort of like when the barking dog finally catches the bumper to the car, now what.

Hey Susan - more money, less work and many people still try to do it on their own.

Hello Sharon - the risk in selling your own home is too much for many.

Hi Joan - Thank you for your kind words. I hope it helps.

Hey Cindy - great point about the comfort level of the potential buyers not being comfortable dealing with the sellers directly. 

Hi Eric - if you really did a cost analysis including hard and soft costs, I don't think there is a way for a FSBO to come out ahead unless they already had a buyer lined up or had special circumstances to overcome many of the issues.

Hello Kathleen - there are many reasons the penny wise and pound foolish still gets used today and real estate is definitely one of those reasons. Thanks for your comments.

Hi Geoff - you can try and tell people the reasons but some still need to try it out first hand as they just can't believe it is that difficult. Then they learn.

Hey Bill - the FSBOs certainly represent an opportunity for all of us. As you say, timing is key.

Hello Lynn - great reminder. What is your goal --> sell for the most money in the shortest amount of time with the least amount of risk.

Hi Nina - taking the time to educate our clients is something we as an industry should certainly try to do more. Not just the agents but our local, state and national associations should as well.

Hello Ann - I was not aware of them until I linked them together. The second set that FSBOs face I have heard many times but I like the ones for real estate and am glad you liked them too.

Hi Raul - I guess it is all about the risk reward for the sellers that go FSBO. Some still do not realize that you can't save money if you don't sell the property.

Well said Michael - getting and signing a contract can be the easy part and the work just starts as getting to a successful closing is a whole trip in itself.

Hey Ed - if you start building on a deck of cards, sooner or later it will come tumbling down

Thanks for your kind words Jeff.

 Hi Richie - it is amazing how a good painter or plumber can make caulking look so easy. How hard could it be to lay down a bead of caulk? Famous last words. How hard could it be to sell my house? not hard at all if you hire the right RE agent. 

Thank you everyone for contributing and commenting,. It is greatly appreciated.

Dec 30, 2013 12:08 AM #31
Rainer
4,808
Elaine Zacka
John R Wood Properties - Bonita Springs, FL
"It's All About YOU!"

All good points there. Selling your own home is like buying a nice looking t-shirt for half off only to get home and realize the stitches are crooked down the sides.

 

Dec 30, 2013 04:20 AM #32
Rainmaker
110,289
Christie Lane Craven
Blackwell Real Estate - Odenton, MD
Your Anne Arundel County Agent

All excellent points Jeff.  I believe many FSBOs don't know what they are getting themselves into.  There are also likely some who have probably been burned by a bad agent in the past and are reluctant to go down that road again.

Dec 30, 2013 04:38 AM #33
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Elaine - thank you for your comments. I like your analogy.

Hello Christie - many of them probably have been down that road. Makes it a bigger hurdle for the rest of us to overcome.

Dec 30, 2013 05:25 AM #34
Rainmaker
1,558,040
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

As a broker, the public speaks volumes.  There's a lot of TV shows that purport the way to sell and makes everything look so easy.  

Dec 30, 2013 06:07 AM #35
Rainmaker
597,019
Tracy Lee Parker
RE/MAX Dallas Suburbs/PLATINUM PROPERTIES & MANAGEMENT - Rockwall, TX
Buy*Sell*Lease

Didn't know the actual stats of how much more a seller can make using an agent! I really don't like to represent buyers who buy a FSBO, too much legal risk for me!

Dec 30, 2013 07:13 AM #36
Ambassador
1,720,996
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Jeff - I came from the reblog by Lynn. It is really a well thought and written blog post. Unfortunately, it is difficult to fight the perception that it is nothing easier in the world.

Dec 30, 2013 11:13 AM #37
Ambassador
4,298,221
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jeff, goes without saying, there is always a difference in a Pro and an individual! Very good points to convince someone on fence, thinking 'they can do it!'. Yeah!

Dec 30, 2013 11:29 AM #38
Ambassador
1,240,366
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Jeff - Very nicely done here. I am amazed at how many people assume that selling a house is super-easy. Having done this for 17 years, I know the pitfalls and I know the value that we add with our involvement in the sales process.

Dec 30, 2013 01:59 PM #39
Rainmaker
964,253
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings

I would think it would be 100%, rather than 46% that don't use a listing agent to avoid paying half the commission. Otherwise, why wouldn't you want a professional working full-time to sell your house for top dollar as quickly as possible?

Dec 30, 2013 07:01 PM #40
Rainmaker
288,566
Patti Irwin
HomeSmart Lifestyles-Fountain Hills AZ Real Estate - Fountain Hills, AZ
No Pressure, No Sales Pitch, Just Expert Advice!

If sellers only knew all the behind the scenes work that is done before you even get an offer.

 

Dec 30, 2013 11:07 PM #41
Rainmaker
468,350
Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist

I find showing up with a disclosure package convinces a lot of would be fsbos.

Dec 30, 2013 11:41 PM #42
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Carla - yes the TV shows certainly make selling a home, flipping a home, remodeling a home all seem easy and will always work out fine. Certainly not the case in real life.

Tracy Lee - FSBO certainly does open the door to litigation a little more.

Jon - thanks to Lynn for the reblog and thanks for your comments. Unfortunately for our customers, perception is reality.

Praful - thank you for your kind words and comments.

Jason - we do this (or are in the process of doing this) every day. We may make it look easy but seeing a pot hole in the process and missing it are two different things.

Aaron - that is the number from NAR. 46% say that it is their number one reason. I would guess that 100% has that in their top three.

Patti - before, after and during the offer negotiation has a lot of work. Sometimes we do such a good job and make it seem so easy that then everyone thinks they can do it.

Marcy - yes that seller's disclosure package is like wielding a big stick. 

Dec 31, 2013 01:29 AM #43
Rainmaker
3,172,493
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff you are absolutely right with this post. I do not know any attorneys who represent themselves nor do I know any surgeons who operate on their own body:))), Endre

Jan 02, 2014 08:10 AM #44
Rainer
211,241
Jack O'Neal
Conway Real Estate - Gilbert, AZ

When the market hot 2006, I someone down the street threw up a For Sale by Owner, call him he said he was asking $119 for the home and had just sold it. I said great its woth about $140, no your wrong the seller said, OK buyer sold it for $190 six months latter. What do I know

Jan 02, 2014 10:50 AM #45
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Endre - as Rodney Dangerfield put it so eloquently - Sometimes i get no respect. he must have been in real estate too.

Hi Jack - no that is a great story that I will definitely use in the future.

Jan 03, 2014 01:02 AM #46
Rainmaker
382,812
PropertyMinder (AccelerAgent)
PropertyMinder, Inc. - San Jose, CA
Modern Tools for the Modern Agent

A great article! We just posted this on our networks- and we will be posting your article as well! -Anna, PropertyMinder's Social Media Gal. @PropertyMinder

Jul 24, 2014 04:19 AM #47
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Thank you for your kind words and willingness to reblog.

Jul 25, 2014 06:09 AM #48
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