Reduction! Sale! Discount! Rebate! We all get naturally drawn to it, and who wouldn’t love to save some money on the side? More than five million homes were sold last year in the United States alone. And when it comes to life purchases, such as purchasing a new home while selling the old one, a discount can mean saving thousands of dollars.
One of the prominent people to find savings include a low commission realtor. The standard commission rate of a realtor is six percent of the home price. On a $250 thousand home, the five to six percent commission falls somewhere between $12 thousand and $15 thousand.
Given the size of this amount, you might be compelled to re-think hiring a realtor’s services and replace it by acting as your own seller’s agent. Undoubtedly, selling your home yourself can seemingly be a great way to save a substantial amount. However, the risks of doing it all alone outweigh the potential benefits of seeking a low commission realtor.
Here are some essential benefits of hiring a low commission realtor and saving money when selling your home.
What Makes the Low Commission Real Estate Agent Different?
Understandably, you might feel hesitant to opt for a low-commission real estate agent as you might find them lack in qualification. The truth is that the low commission real estate agent is just like any other traditional real estate agent.
A low commission realtor is licensed and as qualified as the traditional realtor, with the only difference that they charge you at a lower commission rate. Depending on the realtor agent, they might offer you complete services. Or they can also provide you with limited services while charging a lower commission. That said, before you take up the services of a low commission realtor, make it a point to discuss what you are gaining before deciding to take in their services.
The Buyer’s Agent Might Discourage an FSBO Deal
Often, realtors don’t recommend their clients getting indulged with an FSBO (for sale by owner) deal. The reason for it is that the buyer’s agent knows that they won’t be interacting with a professional colleague in the business transaction. Subsequently, the agent might cite hassles and risks of closing a potential deal without a representative seller’s presence. The absence of a professional representative seller indicates the lack of guaranteed commission.
The bottom line is that if you want to be taken seriously and save money while selling your home, it is better to use a low commission real estate agent and minimize the risks of missing out on key steps and risking a lawsuit.
No Emotional Sales With Realtor Agents
Selling one’s home is an emotional process with so much history and memory attached to it. Having a realtor by your side decreases your potential chances of committing stupid emotional mistakes. For instance, the realtor agent will ensure that you don’t overprice your home or get offended when the potential buyer comes up with a much lower counter offer than expected.
While selling your home, you also run the risk of giving in too easily and selling your home for cheaper than it is worth. Such instances are typically prone to happen when you have a deadline for having your home sold by a certain date. You can leave the job of following up with your realtor agent as they can perform their job effectively without sounding desperate or eager.
Remember that your actions speak louder than words. If a seller will repetitively check in with the potential buyers, it indicates that they are willing to accept a lower price, which can lead to loss of money and value. That said, trust your realtor completely and let them handle the situation so that you can make the most out of selling your home and saving a substantial amount at the same time.
By forging a realtor agent, you run a greater risk for dealing with rejection directly, which can be quite upsetting. A realtor agent won’t have a problem taking the sting of rejection. Instead, they know to turn negative feedback into a positive one without letting the homeowner know why their property got rejected by potential buyers.
Unmatched Knowledge, Skills, and Experience
Though realtor estate agents demand a commission, it’s still best to entrust them with the process of selling your home, especially if you have never tried doing so before. While it might be enticing not to use an agent to save more money, hiring one offers several advantages that can help you get a better deal.
Remember, a good realtor agent will prioritize getting what’s best for you. An agent has the proper knowledge of the market and competition, ensuring that you get fair and competitive pricing aligned with the other available properties in your area. That way, you’ll steer away from pricing yourself out of the market and avoid disappointment by making sure that you get the right offers for your home.
Moreover, an agent has the right skills and experience to increase the odds of securing a quick sale. An agent knows how to negotiate home sales and distinguish real potential buyers from tire kickers who simply want to view the property without the intention of actually buying your home.
Lastly, an agent is more familiar with dealing with paperwork and legal matters, avoiding delays or any legal issues in the process. If anything comes up, you can be confident that the agent will be there to handle it for you.
Be more creative
Just because things are done in a certain way doesn’t entail doing it the same way. Your real estate agent can recommend different tactics to attract more potential buyers, such as de-cluttering, doing repairs, and minor renovations. Any of these can create a huge impact when selling your property.
If you’re opting for repairs or renovations, be cautious since it’s easy to go overboard with them. Inspect thoroughly, discuss it with your agent, and only do reasonable repairs or upgrades that will generate a return on your money. For instance, it will never be wise to remodel the kitchen for around $25,000 if it will only add about $15,000 to the home’s resale value.
Meanwhile, your agent can also help you be creative with how you sell your home. Rather than sticking to traditional channels, you can take advantage of different real estate channels and databases available in both digital and print.
Lastly, you’re also now not required to travel or fly to your old home to finish the closing process. Thanks to the continuous advancement of technology, you can now do communications, meetings, and closing processes online via video conferencing. Thus, helping you save further on costs.
Add furniture to the deal
Do you have pieces of furniture that won’t suit or fit your new home? Then, a low-commission realtor agent can also help throw them into the deal and sweeten an offer. This can work in your favor, as you’ll save yourself from the hassle of disposing of or moving them and the expenses that it entails. Not to mention that it will also be more alluring for first-time homebuyers who may need some help in furnishing the house.
By using these techniques and with the help of a low-commission realtor agent, you can boost your home’s value, help sell it quickly, and manage to save money in the process. Just don’t be afraid to ask and work hand-in-hand with your agent to get the best value for your home.