Can anyone compare the benefits of working with a Realtor vs. selling a property

[Elaine E]

myself? I am going to put my house in Atlanta on the market and had planned to do it myself, but with the market in its current decline, I wonder if I might be better off with an agent. I would like to hear from anyone who has experience with either.

[Atlanta Realtor]

First off, let me say up front that I’m a Realtor, and that I work in the Atlanta area. I will try to give as unbiased an answer as I can!

As far as I can tell, the only real benefit to selling your home yourself is that you will not have to pay a full commission. However, you almost certainly will be asked to pay a buyer’s agents commission, so that’s 3-3.5% right there. Lets break down the cost of marketing your home yourself:

MLS service: Agents in Atlanta use two different MLS services to find homes for their buyers. If you sell your home without a realtor, but want to be listed in the MLS, you will need to hire a flat fee brokerage that will register you with the service and provide a lockbox (if you want one). This usually has a base price of about $500, with added marketing upgrades you can purchase going up to $3500. This is a fee that must be paid up front-they do not collect at closing, and if it does not sell, you do not get a refund.

Advertising: Given the current status of the market, you will want to make as many people aware of your property as possible, by having a web page, virtual tour, professional staging, flyers, newspaper ad, internet ads, open houses, postcards, television marketing, etc. I generally will spend about a fourth of my expected cut of a commission on these items, which will translate to about $1500 on a $300,0000 house.

Time: If someone calls and wants to see the house, you have to take time out of your day to show it to them. If you have contracted with a flat fee brokerage and have a lockbox, the buyer’s agent can let them in, but if someone is either not working with an agent or is not with them when they drive by and see your sign, they will want you to show it. Add to this the danger of allowing people you don’t know into your home while you are alone, and the situation becomes very risky. If you do this, make sure that you have someone you know call to check in on you after you have shown the property, with the understanding that they will call the police if they can’t reach you. Do this even if you have someone at the house with you tat you know.

Money: Unless you are extremely familiar with GA Real Estate contracts, you will want to have a lawyer go over any contract with you. Generally, this will run you about $150 an hour and up. If you have several counters, then have to negotiate after the inspection, this can really add up. Your Realtor will be able to guide you through contract and negotiation, then inspection and negotiation, and is trained to find ways to save you as much money as possible through these negotiations. Studies show that the purchase price of homes sold by Realtors is on average 9% greater than those sold by owner, and that the bulk of that difference is a result of negotiation skills. Your buyer will have a professional working on their behalf, and unless you are remarkably savvy, you are going to be at a disadvantage.
You will come out of pocket before sale with a substantial amount of money, risk your safety, have to rearrange your schedule to show the house, have to design and purchase and implement advertising, consult with attorneys and probably not get your best deal on a variety of negotiations due to being unfamiliar with the process. And you will still probably have to pay a 3.5% commission to the buyer’s agent.

Or, you can hire me to do everything mentioned above and a great deal more, at my expense, for a total commission of 7%, paid only if the house sells, which I will split with the buyer’s agent. I spend money on your behalf that I can only recoup if I sell your home.

If I can be of any help, please contact me at Jason.Horgan @ColdwellBankerAtlanta.com. If you are pasteing the address into your email, make sure to remove the space between my name and the “@” symbol.

Good Luck!

[Thomas2Sell, Realtor]

My experience dictates that when someone ask this question what they are really saying is tell me about the money. So here it is....................

On average For Sale By Owner homes sell for 12% less than homes listed with a Realtor. Now the average real estate commision is about 6%. That means that not only do you do all of the work but you cost yourself about 6% of your selling price. Based on the average selling price in my city that is about $15,000. Hope I helped.

[David B]

I am not a Realtor, but I would recommend working with one IF you can negotiate intelligently to avoid the many hazards involved in signing contracts with real estate agents.

Rather than plagiarize, I would just suggest you read this essay: http://consumermaven.wordpress.com/2007/10/10/before-you-talk-to-a-real-estate-agent-or-realtor/ ("Before you talk to a real estate agent").