The (Not-SO) Secret Selling Advantage
There are lots of great reasons to entrust the sale of your home to a professional agent instead of trying to sell it yourself, but here’s one guaranteed to grab your attention: Two new batches of research prove that agent-sold homes sell for more money.
According to the most recent Profile of Home Buyers and Sellers by the National Association of REALTORS (NAR), the average sales price for homes sold by their owners is $185,000, while the average for a home sold by an agent is $245,000 – a difference of $60,000.
Meanwhile, a study performed by Collateral Analytics, featuring :the most accurate method ever used to control for property differences,” compares the two approaches on an apples-to-apples basis. It found that, when a homeowner and a real estate agent sell similar homes, the owner-seller, on average, nets nearly 6% less money than an agent.
To put that second study into perspective, you need to understand that most real estate professionals charge a commission of about 6%. That means many owner-sellers take on all the work, worry and risk of selling their own home, only to net the same amount they would if they had paid an agent to handle everything.
New Online Resources Not Helping
For years there has been rapid growth in the number of online services and resources for homeowners who want to sell their home without the help of a real estate agent. However, researchers studying the issue note that the success rate for owner-sellers has remained stagnant for decades. Meanwhile, the number of homes successfully purchased with the help of a traditional agent just keeps growing (increasing 20% since 2001, according to the latest NAR research).
Why are agents so much more effective? These are some of the keys:
Spot-on Pricing – no one is better equipped to determine the best price for your home than an agent. They have all the best information, resources and processes.
Widespread Exposure – the only way to get your home listed on the all-important multiple listing services (MLS) is through a licensed real estate agent. Plus, agents share their sales listings amongst each other through their own corporate and social networks.
Valuable Advice – your agent will be able to tell you what, if any, home improvements/repairs are necessary to ensure a quick sale, as well as whether staging could help attract a better class of buyer. They can also recommend reputable contractors to carry out those tasks.
Salesmanship – showings will be scheduled and managed by your agent. All you have to do is keep the property clean and tidy.
Negotiation – your agent will also help you review all the offers from interested buyers, prepare counter-offers, weed-out unsuitable offers and negotiate the best final terms.
Paperwork expertise – your agent will properly prepare, explain and manage all of the contract paperwork, addendums, property disclosures, and other documentation associated with the sale.
When to Make Contact
For the best results, I encourage home sellers to contact me at least 60 days before they want to sell. Even if you haven’t found a new home yet, or you aren’t positive you’re going to sell, it’s important to get the agent/client consultation process started early.
Source: Windermere Real Estate March Home Update.