Should you use a real estate agent?

One of the most common questions I’ve been asked is, “Should I use a real estate agent to sell my house?” The answer to this is very situational and a “one size fits all” answer cannot be given. In fact, my answer often sounds something like, “Why do you want to sell your house?” The answer to this question is actually what the answer to the original query dictates.

So why should someone use a real estate agent? A good real estate agent provides some invaluable resources and skills that make the home selling process much easier. Some of these resources and skills are things like an intimate knowledge of the local market, superior marketing and negotiation skills, and even industry connections with other local players. These things can be very beneficial to the agent’s clients who want to get the best price for their property.

However, there is a catch to all of this. By using an agent, the homeowner can get the sale price of their property (or at least close to it), but about 12% of that will be skimmed off the top and go to pay commissions. of the agent and also to help. buyer with closing costs and other concessions. So if an owner has a significant amount of equity and the property is in pristine condition, then this may be attractive to that person.

But if you need to sell your property quickly for whatever reason or if you have little to know about home equity, then there is another alternative, you can sell it yourself and offer to carry the financing for the property. This type of property sales strategy has shown that homeowners still get the best price for their property and it sells faster.

You can structure the sale however you want. I would recommend at least asking for a down payment of some sort and, as part of the terms, a balloon payment due in three to five years. Studies have shown that the higher the down payment a person makes on a property, the less likely they are to default on the loan. The balloon payment ensures that the buyer, whose name will be transferred to the title once the property is closed, will refinance the property and you, the seller, will obtain the remaining principal and your name will be removed from the loan.

Selling your property this way is a great way to move your property quickly and is a great alternative to the traditional route of selling through a real estate agent.