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Did you Know? One of the newest techniques for advertising your home for sale by owner (FSBO) is to list your home on the internet?For Sale By OwnerWhile the options for selling a home through a real estate agent, and the commission you pay, have expanded significantly through the years, some people feel they can do a satisfactory job of marketing their home on their own. Your decision should be based on many decisions, not necessarily the money savings or commission that you pay a broker. While the savings can be significant, the amount of time a home stays on the market can eat up these savings, should a home take months to sell. Take a look at the commissions paid for a full-service broker.
If your primary obstacle is paying real estate broker commission, before you decide to "go it alone", you should consider negotiating a different commission rate. Some real estate brokers, while not publicized, offer various commission rate structures based on the services they offer to you. Some real estate brokers may offer a discounted commission of about 4%. They may offer reduced service, fewer open houses, or fewer newspaper ads promoting your home. If you live in a neighborhood where homes sell quickly, this is a very viable option. My own neighborhood has an average 3-day listing before a house sells. My neighborhood is over-run with real estate agents, who have purchased homes. In most cases, brokers buy these homes before they are even published. A buyers agent commission of about 3% can be a real bargain. In this instance, you may list your home for sale by owner (FSBO) with an offer to pay any agent that brings a buyer a 3% finders fee. In some cases the buyer may pay this fee. An assisted sale commission of 1% involves a broker assisting with coordinating details of closure without being involved in the actual marketing and sale of the home. The Sale Price and FSBOSale price, market demand, and housing inventory on the market, each affect the decision of selling a home by owner. Some argue that a flat commission rate of 6% may be acceptable for a $100,000 sales ($6000), but a $30,000 commission on a $500,000 home may be exorbitant. Some feel the effort for selling both homes is about equal. While a real estate agent may disagree, there may be a lot of truth to this assumption. Others suggest that a more expensive home is much more difficult to sell, so the extra commission paid is offset by the higher skill required to sell the higher priced home, but essentially the sale process is the same. To offset this trend, many brokers have transitioned to an ala cart fixed fee for service rate schedule. This also may be an alternative to going it alone. In this scenario, the broker has a listed price for each component of the sale process. Rather than charging a flat commission rate, the broker charges a fixed fee for the service performed. If the broker assists with completing the sales agreement, there may be a $500 fee. If they arrange title work there may be a $250 fee. Helping with escrow may necessitate a a $200 fee and so on. This allows an FSBO sale to pick and choose the services that the buyer and seller need rather than using a full service broker. Selling your home without a broker is common and is not required by law.
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Helton Genealogical DNA Project - Hilton Family Tree - http://hiltonfamilytree.com
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