When you are ready to sell your home, you want to sell it for as much money as possible and you also want that money to be yours. Paying commission to a real estate agent is a common expense when you sell your home but many sellers think it is unnecessary and will do everything they can to avoid the expense completely or get a reduced rate to save money.
As the number of real estate agents increased and the market evolved, many sellers turned to flat rate brokers to sell their home so they could reduce this expense in an effort to put more money in their pocket. Flat fee agents, also known as limited services brokers in some markets frequently only list the property for sale in MLS then the seller is expected to do the rest of the work. That includes showing the home to prospective buyers, any marketing you want to do including conducting open houses, negotiating the offer on your home with the buyer or another agent and much more.
While this may sound like just a few items for you to take care of, they require specialized knowledge to protect your greatest asset and avoid being taken advantage of. Imagine negotiating the contract on your home with an agent with 20 years of experience selling real estate in your area who has recent comps and other facts to backup the offer they presented. Do you have the resources and knowledge to protect your investment?
A flat rate broker will allow you to determine your costs up front and are frequently less than the percentage based fee charged by other real estate agents but severely limits the services you receive and doesn’t include any compensation for the buyer’s agent, which is often an expense to the seller. Before you assume you are saving thousands of dollars, make sure to include that expense because a buyer’s agent that shows your home will likely expect compensation.
When you are tallying the total cost that you will incur to sell your home, make sure you account for everything. The broker’s fee, commission to the cooperating agent, expenses for marketing, open houses, a lockbox if needed and also your time. You will be the point of contact for those with questions about your home and will be scheduling appointments for buyers to view your home. If you aren’t available to show someone your home and aren’t comfortable having them access your home through a lockbox, the buyer won’t be able to look at it and you might miss out on the buyer of your home.
Another item to think about is how you will price your home. Do you know what your home is worth? Remember, that the value of your home is not the amount you want to sell it for or the amount you owe on your mortgage. If you overprice your home, you won’t sell it. If you underprice your home, you will sell it but will be leaving money on the table that could go in your pocket.
When you are ready to sell your home, give me a call and let’s talk about the home selling process and how I can help you reach your goals and give you quality service for a fair price.
Brooke Boles
Coldwell Banker Realty
501 E Camino Real
Boca Raton, FL 33432
561.595.4473
Brooke.Boles@CBREalty.com
www.BrookeSellsBoca.com
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