Should You Hire a Real Estate Agent?

A real estate agent is a trained professional who oversees the entire process of selling your home from start to finish. Typically, real estate agents earn a commission of around 3% of the sale price for their services. While most sellers choose to work with real estate agents, there are two alternative methods for selling a home:

• On Your Own: Also known as “for sale by owner” (FSBO), selling your home independently can save you money. However, you must handle all process aspects, including listing, marketing, showing, and selling your property.
• With a Discount Real Estate Company: These companies provide specific services to sellers but do not offer the full support of a traditional real estate agent. For example, a discount real estate company may supply you with necessary marketing materials and legal paperwork, but they typically do not assist with open houses. These companies generally charge lower fees than traditional agents, with some offering one-time flat fees and others charging commissions ranging from 1% to 2% of the sale price. Notable discount real estate companies include Help-U-Sell (www.helpusell.com) and Assist-2-Sell (www.assist2sell.com).

How to Decide on the Best Selling Method for You?

There are several reasons to consider working with a real estate agent instead of selling your property as a For Sale By Owner (FSBO) or through a discount real estate company.

• The Buyer’s Commission: Even if you choose to work independently or with a discount real estate company, you will likely still have to pay the commission of the agent representing the buyer. Since agents provide free services, nearly all buyers opt to work with agents. This means that your savings from working with a discount company or selling on your own will be closer to 2–3% rather than the 5–7% that first-time sellers often assume they will save by not hiring an agent.
• Time, Effort, and aggravation: While you may save money by not using a real estate agent, you will likely invest your time and effort and face potential frustration. Real estate agents earn their commissions through numerous hours of hard work—work that you must manage yourself if you choose not to partner with an agent.
• Expertise: Selling a home is a highly complex legal transaction you may not be trained to handle. Real estate agents are professionally trained in all aspects of these transactions. In addition to knowing how to prepare the necessary contracts and paperwork to sell a home, most agents possess expertise that can help you avoid various legal and financial pitfalls. This expertise alone can be worth much more than the 2–3% you might save by selling For Sale By Owner (FSBO) or through a discount company. If you prefer not to work with an agent, discount real estate companies can be a suitable compromise between selling FSBO and hiring a full-service agent.
  

However, consider using a discount real estate company only if you’re comfortable managing different aspects of selling a home independently. Using a discount company might make sense if you become familiar with the home-selling process over time (and through a few real estate transactions). Yet, if you are a first-time seller, your best option is to hire a traditional agent.

The Key Responsibilities of Real Estate Agents When Selling Your Home

A real estate agent’s primary role is to make selling your home much more manageable. When you sell your home, real estate agents typically handle the following tasks:

1. Develop a Property Profile: Your agent will summarize your home’s essential details, including the number of rooms, square footage, location, bathroom features, and any unique amenities.
2. List Your Home on an MLS Database: The MLS (Multiple Listing Service) is a system of regional databases managed by real estate agents for properties for sale. Your agent will create a listing for your home that includes photos and all relevant details, making it visible to other agents and potential buyers.
3. Set an Asking Price: Agents have access to comparable sales databases (comps) that provide information on recently sold properties in your area. Your agent will use this data and your input to determine an appropriate asking price for your home.
4. Create Marketing Materials: Your agent will produce and distribute a fact sheet containing all the information about your property that potential buyers need, accompanied by interior and exterior photos. Agents also provide “For Sale” signs and often place advertisements in newspapers and online.
5. Manage Open Houses: Most agents organize an open house every few weeks, typically on Sundays. They will attend the open house to answer questions and allow you to avoid direct interaction with buyers.
6. Advice Throughout the Dealing Process: Your agent will collaborate with the buyer’s agent to negotiate terms that work for both parties and prepare all the necessary paperwork once the main deal points are agreed upon.
7. Represent You at Closing: Your agent will arrange and attend the closing with you, helping address any last-minute questions or issues.

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