Do I Need A Broker to Sell My House?
Many people have heard that you can save money by selling your house by yourself, without using a broker. This is because typically brokers earn about 6% of the selling price and sellers feel that if they do it on their own that money could be saved.
For a select few of us - who really know the ins and outs of real estate - this may be true. However, for the majority of us, hiring a broker is well worth the money you will pay for it. (Furthermore, because the buyer knows you are saving money by not hiring a broker, he or she will incorporate that into their bid as well, meaning you don't end up with the money anyhow!)
A broker has many responsibilities that you may not think about before choosing to do it on your own. A broker will:
Establish a fair asking price for your home. Brokers are privy to a vast amount of information about sales in your area that you may not be aware of: price per square foot, school rating, potential liabilities, etc.. They have also been educated to evaluate things like the condition a home is in, what items are unique to a home in that area and could, thus, raise the cost, what the market is like at any given time...
Get it know that your home is for sale. Relying on your own word of mouth when selling your home is difficult to do. Chances are, you will not run into too many people looking to buy a new home on an average day. Your broker already has realationships with other agents that he or she can contact immediately. Also, your broker will be able to publish your house in MLS, or Multiple Listing Service, a listing (almost always computerized) of all the properties for sale by Real Estate Brokerages in a given geographical area.
Handle all advertising and promotion. Your broker will be responsible for all of the details required when promoting a home and will have the resources to do it well.
Handle all of the details of showing your home. This is not just a matter of being around to show your home to prospective buyers. You will need to field many calls, handle multiple visits and know how best to present your home to a potential buyer. Also, a broker can save you a lot of time and hassle by weeding out buyers that they know are not interested in your type of home or do not have the financials to actually buy it.
Refer you to reputable sources for legal councel, appraisals, inspections, financing, etc. You will find that there are many more people involved in selling a home than just the buyer, seller and broker. It is good to know the people you choose have been reccomended by someone you trust and have worked together in the past. This will ensure a seamless process and less stress in the long run.
Negotiate! This is the most difficult part of the transaction for most people. Determining what a fair price really is is hard enough, but convincing the buyer of that is a whole other story. You want to make sure you do not lose a good bid due to lack of knowledge or proper communication skills. You also do not want to settle because you are not comfortable pushing back. This is the real estate agents job - he or she is trained in this topic and practices every day. Leave it to the professional!
So you are convinced you want to use a broker but you don't know where to go to find one. Ask friends. Interview a few. Look for brokers that really know their stuff. Give them a tour of your home and see how they respond. Ask questions about other sales in the area. Ask them what other homes they have sold in the area.
Finally, make sure you are comfortable with and trust the person selling your house. This is a big project and you are a team, your relationship will mean a lot down the winding path on which you are about to embark.
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