Is it Worth Paying Real Estate Agent Commissions Or Should You Sell Your Home Yourself?

A lot of home sellers resent paying real estatean experienced agent. What's more, they are
agent commissions and question whether or notsaving themselves thousands of dollars in
they might be better off selling their own homecommissions.
'for sale by owner' FSBO.Real estate agents will also argue; selling a home
Well, there is no clear-cut answer. It reallyin today's market is not like it was a decade ago.
depends on the seller and how successful he orThe market is more competitive, the buyers are
she is likely to be at selling real estate. It is truemuch more astute, and the laws are more
that agent commissions can run into thousands, orcomplex. Add to this the property sales statistics
even tens of thousands, of dollars depending onproving that the average agent has a better
the value of the property. And, sometimes thechance of selling a home in a shorter time span
sale comes together very quickly with minimum(and frequently for more money) than the
effort on the part of the real estate agent.average FSBO seller. But, what is average?
However, that is not always the case with manyNot every seller is the same and nor is every real
property sales become a long drawn-out process.estate agent. There is no shortage of
FSBO home sellers experience mixed resultsincompetent agents and there plenty of "super
because they either lack the time, people skills,capable" ones too. The trick is differentiating the
marketing skills, negotiating skills and even thegood from the bad!
inclination to sell their own home. For others, sellingWith that said, perhaps the biggest obstacle a
their home comes as an exciting challenge theyseller faces is the "emotional attachment" the
cannot resist.vendor has to the property being sold. The home
Obviously, the big advantage of selling your ownmight be where the kids grew up, or where the
property; is that you avoid the agent commission.family pet is buried. The home might have been
Make no mistake - if you dream of making adesigned, decorated, or landscaped to the
larger down payment on your next home, orvendor's personal tastes. That is why many
want to retire, or simply want to hang onto thesellers are blind to the flaws that an agent can
equity you have worked so hard for... then youeasily spot. And, that is also why an agent may
could save thousands by paying yourself NOT anhave a different view of what the home is really
agent.worth in today's competitive market.
On the other hand, hiring a real estate agent andAn experienced real estate agent can provide a
paying thousands in commissions, could be moneyseller with a Comparative Market Analysis (CMA),
well spent. A case in point would be when a realso the seller knows what the home is actually
estate agent gets you a better sale price forworth, instead of what the vendor feels it is
your home.worth. An agent can provide an independent and
There are a lot of variables to consider: like yourobjective view which can be the difference in
own ability and enthusiasm verses the experiencemaking a sale.
of a professional agent. There are pros and consSo, think carefully before deciding what home
for each method of selling. A lot will depend onselling method suits you best. You may be able to
you or the skill of the agent representing you.do a far better job yourself and save yourself
Most agents would argue; if you needed a heartthousands of dollars in real estate agent
operation would you perform it yourself, or havecommissions.
an experienced heart surgeon do it for you?If you do not genuinely believe you can do a
Maybe they are right?better job, then you might be best to consider
Maybe you do need a professional agent who islisting with a local agent. Choose carefully,
experienced in the business for selling homes? But,interview more than one real estate agent and
the counter argument is that, an increasingask for testimonials from satisfied customers.
number of people are successfully selling theirAnd above all, make sure he or she earns the
own homes (FSBO), WITHOUT the services ofagent commissions you are paying.