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Agent-assisted vs for sale by owner (FSBO) home sale
Some sellers choose not to work with a real estate agent to avoid paying agent commissions. Traditionally, these commissions have been around 5% to 6% of the home’s sale price, split between the listing agent and the buyer’s agent, with the seller typically covering the cost.
However, the changes following the National Association of Realtors® (NAR)’s landmark settlement were set to lower agent commissions. Sellers are no longer required to pay the buyer’s agent fee, as buyers are now encouraged to negotiate directly with their agents.
Still, many sellers opt to cover the buyer’s agent fee to attract more buyers and facilitate a quicker sale. When combined with the listing agent’s fee, this can total around 6% of the home’s sale price. To avoid these costs, some sellers forego partnering with agents and turn to the For Sale By Owner (FSBO) approach, managing the sale themselves.
While the FSBO route seems to be more cost-effective, you could actually lose more money in the process. The thing is, with their expertise and wealth of experience, top agents can help you get more money for your home sale, negating the supposed savings of selling on your own. NAR reports that FSBO homes sold for a median of $380,000, far lower than the median selling price of agent-assisted homes, which was $435,000.
What a top-selling agent offers
Whether your goal is to sell your home fast or for the most amount of money possible, a top agent has the resources and skills necessary to help you achieve it. They know what buyers are interested in and how to find those buyers.
Agents also handle all of the marketing, showings, and open houses. Then, when offers start coming in, they help you analyze each one and decide which is the best offer for you. In addition to price, you also have to take contingencies into account and be ready to negotiate with the buyer’s agent.
“Sellers need to work with someone who has the negotiating skills to negotiate the best offer on their terms. And those negotiating skills are going to be different than they were three to six months ago,” says Ricky O’Neal, a top real estate agent in Folsom, California, referring to the ever-changing housing market.
Clean, repair, and upgrade
Before you list your house, you’ll want to make sure that it’s in the condition that buyers are expecting, which will depend on your local market.
For example, in seller’s markets with low inventories, buyers are more likely to look the other way when it comes to certain fixes. But if inventory is higher, buyers will have more choosing power and might expect a house that’s more up to snuff.
“Staging, new paint, and decluttering offer more than an increase in price,” says Stacy Stanley, a top real estate agent in Grass Valley, California. “It determines how desirable the home is to the market, how many offers it gets, and how fast it sells.”
Deep cleaning
Regardless of what kind of market you’re in, buyers want a clean home. Make sure your house is spotless before you put it on the market or take any photos. If you’re not confident in your cleaning ability, hire a professional cleaner to come in and do a move-out deep clean.
Repairs
Your real estate agent can help you determine what repairs are necessary before the sale. For example, in a market with a healthy amount of inventory, buyers will likely expect some basic necessities, like a roof that doesn’t leak and an HVAC system that is up-to-date and runs smoothly.
You may also consider getting a pre-listing inspection. During a pre-listing inspection, an inspector comes through your home and determines any problem points. If you don’t fix these problems, you could risk a low appraisal or not passing the buyer’s inspection, two things that can tank your sale.
Easy upgrades
Your agent might also suggest some light upgrades you can make around the house, such as a fresh coat of paint inside or outside, or ripping up tired carpeting. These easy projects usually have a good return on investment in the home sale. Plus, they look good in listing descriptions.
Larger projects, such as remodeling a bathroom or kitchen, will usually not get you as much money back in your final sale. If you’re in a seller’s market, many buyers won’t expect every room to be perfect, just clean and generally up-to-date.
