In hot markets such as Frisco Texas or San Jose California, many sellers are thinking that it may be OK to try and sell it themselves or just work with a broker who will provide MLS access for a flat fee such as a limited service broker. Many sellers regardless of the market also try to save money thinking that the big costs are the broker commissions. However, there is more to real estate than commissions.
Costs To Sell YourHome
A good rule of thumb is that it costs the average homeowner about 7-9% of the sales price to sell their home when working with a full service broker. I like to use 8% as a good ball park figure. SInce there are no fixed commissions it will vary. Out of those costs about 1.5% to 2% are fairly fixed title, and other fees that the seller will be responsible for in order to legally sell their home.
Using my suggested number of 8% and 2 % that would mean that a good average number to use for a full service broker fee to be about 6%. This fee is often split between the listing (seller's) broker and the buying broker. If you use a limited service broker you will usually pay the buyer's agent percentage, in this case 3%, and then either a flat fee or an additional percentage. If you sell on your own you will also most likely have to work with a buyer's agent who wil request their percentage or if you are "lucky' find a buyer who is unrepresented.
With a full service broker, you get exactly that—full service. That includes multiple levels of first class marketing, assistance throughout each step of the selling process which will also reduce your risk of litigation as well as a higher level of security.
The biggest "benefit" you receive from a limited service listing is access to the MLS. In Texas they are also supposed to handle all communications as the broker is not supposed to refer buying agents/brokers to speak directly to the principal. Often times this is not done. You can see in the MLS listings that the broker refers all communication to the principal.
When you sell it by yourself, you will either have to pay the buyer's agent or drastically reduce your buyer potential pool. Representing yourself may save on what you pay out but you will also not get as much from your home.
Find Out More
You can find out more details about each of these offerings and the details that support these numbers by looking at this post. Either way you decide to go, if you are selling a home in the north DFW\Frisco Texas area, please call me as a resource or even better to help you sell your home. Find out what my other clients already know—Your Success is My Focus.