I am a licensed real estate broker in multiple states. This is always a very helpful forum, but I admit I cringe at some of the comments made here.
Real estate is a highly complex industry, much more so than most people believe. A good agent with strong background and experience is quite valuable in transactions which are often the largest money transaction of a person's life.
I just finished doing "recurring" training that is required to keep a license active. It was 81 hours long and jammed full of information and detail. Again, most people do not understand the amount of complexity that can be involved. Those hours were only to "refresh" a much larger body of knowledge.
I do not oppose those who sell homes without hiring an agent. It's a free market and that is free choice at work. There is plenty of business even when many FSBO's (for sale by owner) are present. However, history shows a high percentage of owner-represented homes do not get sold. And a high percentage of them are also overpriced. There is no good statistical data on how many of such transactions devolve into lawsuits. But it happens.
In my area, typical RE commissions of 6% for residential have given way to 5% now.
A good agent has access to a *lot* of non-public information. That information is very helpful to properly prepare, price, and negotiate the sale of a home. Your goal as a seller is to get the maximum selling price in a clean deal so you don't get sued after the fact. That proprietary market information (MLS) is quite valuable to achieve top sales price. Even highly intelligent and saavy operators, on their own, cannot access that data. So they are at a disadvantage.
A good agent has many contacts that have proven reliable. Contractors to do needed repairs. Decorators to spruce up the property to make it more appealing. A good photographer who knows what they are doing. And the list goes on-- escrow officers, lenders, home inspectors, etc.
What i have found is wide misunderstanding of what the agent actually does. The agent helps with virtually everything up to you accepting a written offer to sell your home. After that, the "baton" passes to the escrow officer (and others) to ensure the terms of the contract are properly carried out. The agent is still involved, sometimes very involved, but at contract signing the emphasis shifts to the escrow officer.
Suppose you sell your home yourself. That means you will represent yourself and interact with the public. (That, in itself, can be an ordeal.) Also suppose someone is now inside your home, looking at it, but has questions. Consider these possible questions, which could commonly be asked:
- Are the nearby schools good?
- The husband of a mixed-race couple asks: "How many other blacks live nearby?"
- Two parents say: "Our son will be living with us. He is a registered sex offender. Would you still sell to us? Will the neighbors object?"
And the list goes on. The point is, answering questions with the wrong answer, or in the wrong way, even if 100% accurate, may get you sued.
Finally, there is quite an advantage to have an intermediary in any transaction. Suppose a buyer, in your home, asks if you will accept $40,000 less if they pay you in cash-- no financing. However you answer, the buyer gets to evaluate you, size you up, etc. With an intermediary, you can collaborate on a response, also taking into account the proprietary data from MLS.
Real estate is fun and rewarding. If you choose to sell the home yourself, I hope it is a good experience for you!! Just do some homework and you can avoid the most common pitfalls ..... good luck!
