A home seller may wonder if hiring a real estate agent today is necessary since it’s such a seller’s market. But the truth is that a real estate agent is crucial for a seller to maximize their profit and lead the seller through the complicated process. A real estate agent’s commission typically ranges between five and six percent of the selling price. This may seem like a sizeable amount of money to lose in a sale. However, with the help of a real estate agent, homes can sell for substantially more.
According to the National Association of Realtors, or NAR, homes sold without an agent at an average price of $260,000 in 2021. That same year, with the help of an agent, homes sold at a median price of $318,000. Even a 6% commission on that price only amounts to 19,080, with the homeowner netting approximately $40,000 more than a homeowner forgoing the use of an agent.
A real estate agent has several mechanisms that are not easily accessible to a homeowner looking to sell a house through FSBO. The first mechanism is a multiple listing service or MLS. An MLS is a central platform for real estate agents to find out about new listings for their clients. Only licensed agents, brokers, and industry professionals can access this platform.
A real estate agent is also essential in determining your home’s selling price. There are DIY tools available, but it’s critical to have an agent evaluate the house. An agent will have a much better idea of the market and how to appraise the home’s actual value. It is essential to set the right price to sell. If the price is too high, the house will not sell. Conversely, the owner leaves money on the table if the price is too low.
An agent is also familiar with the process of selling a house, which can be quite challenging and involved, especially if a homeowner wants to make top dollar for their house. Marketing and listing the property advantageously on the best websites are valuable skills. Also, an agent is experienced in the art of showing a home.
Another factor is that an agent usually has a network of competent contractor professionals to call upon if needed, such as electricians, carpenters, and plumbers. Lastly, a real estate agent is familiar with contracts and can guide a homeowner through the complicated procedure, as this can be very involved and intricate.