Consider these points when deciding whether or not to work with a listing agent to sell your home:
If You Work with an Agent -
Selling:
- You sign a listing contract, which is a legally binding agreement
that typically gives the agent the exclusive right to sell your
property within a certain period of time (usually 90 to 180 days).
- Your agent researches the market in order to determine your home's market value and reach a sales price in consultation with you.
- Your agent prepares a written marketing plan that includes a schedule for listing, showing, and advertising your property.
- Your agent advises you on how best to prepare your home for sale and helps arrange for pre-sale tasks such as a home inspection.
- Your agent transmits any offers to you, negotiates the purchase based
on your recommendations, and moves all the paperwork through the
transaction.
- You pay for the listing agent's services, either as a percentage
commission (usually 4 to 6 percent) or a flat fee, as specified in your
listing contract. The buyer's agent is paid out of that fee.
If you're buying a home, think about working with a buyer’s agent -
Buying:
- Like the listing, Your agent asks you to sign a buyer’s broker
agreement, which is a legally binding agreement that typically gives the
agent the exclusive right to locate suitable properties within a
certain period of time.
- The agent researches the market in order to determine the potential
purchase home's market value and reach a price that is agreeable to you
and one that will most likely result in a sale.
- The agent prepares an offer and the necessary paperwork including
the disclosures necessary to protect you legally throughout the
transaction.
- The agent represents you in negotiating the price and terms of the
sale as well as overseeing the inspection process and negotiating the
repairs if needed.
- The agent keeps you informed throughout the entire process and
empowering you to make the best decisions based on clear and
understandable communication.
- The agent manages the entire transaction and documents required
through close of escrow with the title company until you receive the
keys.
If You Work Alone -
- To Sell, You are in charge of the transaction, including marketing
your property, negotiating the purchase, and handling the paperwork.
Educate yourself on relevant federal laws and state regulations
governing real estate sales.
- Before purchasing, you must arrange for your financing on your own, shopping for the best rates and terms.
- You do your own market research (including possibly hiring an
appraiser) to determine your home's value or that of the one you wish to
purchase.
- In Marketing your home - You create your own marketing plan and
decide how you will handle inquiries from prospective buyers or their
agents.
- When buying, you must prepare your own offer to purchase and research all the ways to protect yourself legally in the sale.
- In Selling, You decide how to prepare your home for sale, including
arranging for pre-sale repairs, inspections, or other necessary
services.
- In Buying, you must handle all the inspections, negotiations of such
as well as the document process while the sale is in escrow.
- While Selling, You field all buyer inquiries, show the house
yourself, handle all negotiations, and move the paperwork through the
transaction.
- When Selling, You pay for the buyer's agent's services, unless the
buyer is also working alone or has hired the agent for a set fee. You
may also pay for services you require during the transaction, such as
legal advice or help negotiating the contract. Discount brokers offer
individual services for flat rates.