The most proven way to get a full fair market price for your home is by listing your home with a licensed real estate agent.
An agent can market your home through the MLS (multiple listing service) which is where 90% of people go to look for a home to purchase. Agents also have experience in pricing and marketing homes to sell. Of course some agents are much, much better than others, and it’s critical to choose the best one – namely one that has EXTENSIVE experience. Hiring an agent is like buying an insurance policy. When things go wrong (which is common in real estate) having the right one will save thousands or tens of thousands of dollars.
The disadvantage to selling with an agent is the sales commission (6% of the sales price) and the time it takes to sell conventionally. Also, while the home is listed, the homeowner will need to keep paying the mortgage, taxes, insurance, utilities, etc. and keep the home looking good for prospective buyers.
For most people, that have equity in the home, this is still their best option, however, it is only one of many options and strategies available.
We, at Hippie Hollow Homes, are not real estate agents. We are investors and utilize strategies that agents will not tell you about. We do, however, have an affiliate Real Estate Brokerage company that can assist you in listing your home for sale. These Realtors® sell our properties for us – they are the best.
When you call us to discuss selling your home, we will always talk to you about listing your home with our Realtor® affiliate, and we will make you additional offers as well. We call this a “combo plan”. If you want one of our offers, great. If you want to list your home with our Realtor®, no problem, you can still take our offer as a back-up, and the Realtor® will agree to let you sell to us at any time, and you won’t have to pay them.
Questions About Listing Your Home
Do agents always charge 6% to list a home?
Actually they charge 3% to list your home for sale, and you pay an additonal 3% to the real estate agent that represents the buyer, for a total of 6%. That being said, discounts can sometimes be negotiated depending on the home and location.
What about companies that offer to sell my home for 1%?
Well, you probably get what you pay for. The truth is that most companies and services that offer to sell your property for 1%, are actually costing you 4%, because you still have to pay the buyer’s agent 3% on top of the 1%. We call that bait and switch. Now 4% is still better than 6%, but then you have to ask yourself “if they only get 1%, how hard are they going to work to sell my home?”
Some real estate agents I’ve talked to have told me they already have buyers, is this true? And if so, can they discount the commission if they find or bring the buyer and that buyer is not working with another agent?
Well, they often imply they have buyers, but the truth is that it is very uncommon for the same agent to just happen to know the right buyer for your home. Don’t believe an agent that tries to convince you otherwise. If they do bring the buyer, however, it’s okay to ask for a discounted commission.
What about selling my home myself?
In the industry we call that “FSBO” – For Sale By Owner. Most people that try this are trying to save some money and, unfortunately, it rarely works. Most sellers overprice their homes, and ultimately get no offers or stay on the market so long that when they finally get an offer it’s far below what they could have gotten listing their home with an agent.