Flat Fee Listing Services versus For Sale By Owner?
For many homeowners, the idea of selling their home can be a daunting one. Especially when they consider the finances. Many homeowners do the math long before they ever call a Realtor. They want to know one thing, and one thing only: how much money am I going to bring home after I pay all the fees?
For home sellers that are either very financially savvy, conservative with their money, or occasionally just short on funds, the idea of spending the 6-10% in real estate commissions can seem like a HUGE amount of money. Then you add in the reputation that is create with part time real estate agent with photos like the one below listed in the MLS and online, the home sellers are starting to wonder why they even pay ANYTHING to their Realtor because: “I could do better than that”.
The sad truth is, the average consumer CAN “do better” than probably about 80% of real estate agents out there. However, doing better than the 80% that sell homes part time can still COST YOU MONEY.
The honest truth is this: when someone knows a seller has either: a. Listed their house themselves (For Sale By Owner) or b. Listed their house with a flat fee company, the buyer (and their agent if they are smart and hired one) knows that they are dealing with someone without professional negotiation skills.
Think about it this way: if you bought a watch from a department store last year for $800, never took it out of the box, and went to sell it at a yard/garage sale…. what do you think you could get for it? Same price you paid for it? Doubtful. Most likely somewhere around 50% of what you paid for it if you’re lucky. Now take it and consign it at a store or sell it online. You may improve that margin a little, but you’ll never get out of it what you paid for it when you dealt with a sales rep inside the first department store.
The lesson is this: people pay more for things when there are professionals involved. End of story. So by hiring a flat fee realtor, or by listing your house yourself … you are already signing yourself up for taking a lower price. Keep in mind the buyers who are looking at your house are looking to save money too. So… if you’re both saving the commission by working directly together, did you actually save any commission? NO! The buyer always wins here. No commission is paid, the sales price dropped to rock bottom, and the seller/homeowner does all the work.
I’m not saying it’s a bad thing to sell your house yourself, I just encourage everyone out there reading to really think: am really I saving myself money? If you’d like a 2nd opinion for your house in Athens or Northeast Georgia, reach out to me today. If you live somewhere else, message me anyway and I’ll connect you with the top realtors in your area.
Thanks for reading!
CEO, Realtor, Associate Broker, Free-Spirited Southerner
Keller Williams Realty, Lanier Partners
3730 Village Way Suite 160 Braselton, GA 30517
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