You don’t need a realtor to sell your Florida house.
There is absolutely no reliable evidence paying 6% commission to a real estate agent gets your house sold faster for money. This claim is made by realtors citing the National Association of Realtors (as if they were objective).
There may be a reason to hire a realtor, but don’t fall for the trap that you must pay commission for a profitable sale.
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There are a few ways to sell property without hiring a real estate agent. Homeowners often think about paying a realtor because they are accustomed to the idea and don’t consider other options. You can waste time and money by exploring only one solution.
Besides selling your Florida house with a realtor, you can sell direct to a buyer or list your home “For Sale By Owner.”
Let’s break down the pros and cons of these methods so you can make an educated and intelligent decision about how you prefer to sell your house.
Advantages of Selling A Florida House Direct.
Direct house sale offers benefits people regularly look over.
Direct sales save a ton of time. In most cases, direct offers are cash (not conventional mortgages) offers. There is no drama of appraisals, bank approvals, last minute loan denials. Cash closes faster than any other method of financing.
There are advantages to a quick home sale. Selling property fast ends payments on the house, such as insurance, utilities, maintenance, taxes, mortgage payments. It can save you a ton of time. Many people who make direct offers are paying in cash, so there is no waiting on the banks to secure the loan.
You also save lots of money in commissions, agent fees, and listing costs by not paying a realtor. Direct home sales are typically “as-is” – the seller does not clean, make repairs, or make repairs. Leaky roof? HVAC not working? Fire damage? You don’t pay for fixing any of this with an “as is” sale.
When selling direct, you set price (not an agent). If you would like to sell at a price, great. If not, bide your time. In the modern era, if you can use a computer, there is very little point to hiring an agent. Do you need them to look up comps? Do you need them to tell you what price you want? My guess is no.
Cons of Direct Sale a House.
The biggest downside of a “direct” sale is that there is less competition and competing bids. When selling direct, houses are often not listed on websites or the MLS so you are working with a smaller pool of buyers. In some cases, this can mean selling for a total price less than hiring a realtor (however – note that doesn’t mean making less money, once you factor in realtor commissions and on-going holding costs).
The advantage of a smaller pool of buyers means less people walking through your house and you can pace your home sale. The disadvantage here is less bidders competing against each other.
Want a sell your Florida house directly for cash? Give us a call (954) 676-1846 for a fast and fair offer. Guaranteed.
Pros of Selling Your House “For Sale By Owner”.
Want to control the home sale process? Not subject to the whims of a real estate agent?
“For sale by owner” is the way to go. You control each aspect of the sale, and have the power to decide the right course of action for your home sale. Similar to a direct sale discussed above, you won’t have to line an agent’s pockets with high commission.
Cons of Selling Your House “For Sale By Owner”.
Although controlling the property sale sounds idea, it does mean you will have extra work to do. Making decisions on advertising, choosing a buyer, taking a look at contracts, arranging showings, negotiations. This can be a headache if you aren’t familiar with how to sell a house.
Another downside to “for sale by owner” is the risk that you become overly emotional. Grew up in the house? It’s will be hard to be objective. Operating on emotion can have some negative consequences. Maybe you let a great offer pass, or accept one that isn’t so good.
If you are going “For Sale By Owner”, keep a level head. Don’t get offended by offers or over price if you know you are asking for quite a bit more than comparable sales and active listings.
Pros of Working With an Agent.
We’re not big fans of realtors – so it’s hard to come up with “pros” of paying realtor commissions.
Did you know you can get a real estate license for a few hundred bucks and couple weeks? This isn’t medical or law school (it’s not even high school!). In truth, virtually anyone can get a piece of paper and call themselves an agent. Moreover, most realtors are not competent.
Here’s a trick right out of the agent playbook: (1) tell you they can get a super high offer; (2) you sign listing agreement, (3) they have locked you in to 6% commission no matter the sale price; (4) they have no motivation to do anything until the expiration of the listing agreement; (5) come back with “oh, sorry it didn’t sell, this is the highest offer you should accept it”; (6) collect commission. Happens all the time.
There are some good agents out there. An exceptional agent should go above and beyond. Your home sale should be the absolute most important transaction to them. They should not only help with the sale, but work to transition to your new property and have the skills and resources for a fast and high price sale. A good agent should completely pay for photography and stagers, and be present for inspections, negotiations, showings. Very few agents do any of this.
Indeed, forget about the National Association of Realtors research (it’s comical anyone would even pay attention to them). Check out what Stanford and Northwestern University (two completely neutral groups) found out about for sale by owners:
Two independent studies show the complete opposite. Stanford and Northwestern University concluded from their studies that homes sold without an agent sold for an average of 4-11% higher when no agent was involved. The only study that shows this is the one funded by the National Association of Realtors (100% funded by realtors!!)
The only reason I would use an agent is to remove work load. If you’re property is in “tip top” condition in a hot market, there can be a large number of offers and requests for showings. That can get overwhelming and a realtor could help manage that process if they are focused and involved.
Cons of Working With An Agent.
Selling with an agent means you responsible to pay 100% of the realtor fees. This is around 6% of final sale price. You also typically pay about 2% of the final sale price in closing costs and to get the house ready for listings. Indeed, realtors often tell home sellers they need to “fix up” the house before the listing. This includes a professional cleaning, making repairs and cleaning done on a constant basis.
Here’s the reality: realtors want you to pay to fix up the house, because they will make more on commissions. Did they do the math to show that the requested repairs will pay off for you not them? Never. Moreover, realtors simply can’t guarantee sale price or when it will sell, contrary to what they may claim.
There are many ways to sell a Florida house. Make sure to diligently research available options. Don’t settle for paying a real estate agent until you rule out that other options aren’t better for your needs.
We Buy Houses
Call Us (954) 676-1846 Send Text Send Text Send Text or Fill Out This Form For Your FAIR Offer.
