There are two ways to sell your home, listing with a broker who charges an average 5%-7% commission is one way, while the “FOR SALE BY OWNER” is the other way, the latter has proven to save thousands of dollars, but the one question that comes to the seller’s mind is: Am I scarifying valuable services that a broker offers to save the commission money?
With today’s technology and a lot of social media platforms, selling and marketing homes has become easier and most cost effective, the most important key for marketing a house is to list the property on your local MLS to be seen by thousands of potential buyers, in order to do so, you need a licensed broker to get you listed on the MLS, and this is where the flat fee brokers play their important role as they will list your home on the MLS for a minimal fee, and you save thousands of dollars on commission.
What is the process of selling your home by owner?
Selling your home yourself is a challenge for some people, in order to be up to that challenge, you need to be familiarized with the process. The following are steps that you need to take when selling your home
1-Determine the price
Homes will sell at market value or less, it is not recommended to overprice your home and have it sit in the market for long time, that will be a negative impact on your asset in two ways; one is that it helps sell similar homes faster, and thus your house loses market interest and qualified buyers, and second you will face appraisal and financing problems that might lead to taking your house off and then putting it back on the market.
To reach the right price for your house, you can either look at comparable sold homes in your neighborhood during the last three months, or more predictably get a professional and educated competitive market analysis from a licensed broker or may be getting an appraisal done.
2-Prepare the home for sale
The first impression is very important when selling your home, so you need to make it a good one. The best way to ensure that great first impression is to do a walkthrough with the eyes of a buyer, and make a checklist of some small DIY projects you need to consider before putting your home on the market that will leave a huge impact on the buyer’s decision, curb appeal, fresh painting, fixing window’s screens, make sure doors locks properly, declutter the entire home to show spaces, leaking faucets ..etc to name few.
The key here is to have your home be seen by as much buyers as possible, the first and foremost tool that you do not want to miss is listing on the local MLS. The MLS is an essential marketing tool that will capture a lot of traffic. Once your home goes active on the MLS the listing will be syndicated automatically to hundreds of real estate websites that catch a lot of traffic such as Zillow, Trulia, Realtor.com to name few. Other marketing tools you might want to consider
- Yard sign
- Social media
- Open houses
- Community newsletter
Likely you will receive an offer presented by the buyer’s agents who are looking for their buyer’s best interest, so you need to have a bit of negotiating skills when offer comes with different terms than what you have anticipated. Sometimes it will make much more sense when you consult or use a broker facilitation services for a small fee the broker who is trained and has strong negotiating skills will put you in a better off position, saving the transaction and get the best dollar amount out of your home.
This is the last destination of your journey, once you reach an agreement with a buyer and you have an executed purchase agreement, you need to follow up on few things to ensure a smooth transaction.
- Buyer’s home inspection if any to remove the inspection contingency.
- Buyer’s lender to make sure appraisal order placed on a timely matter.
- Appraiser to make sure appraisal value came at or above offering price.
- Find a title company or closing agency to line up the file with to close your side of transaction.
All need to be done in a timely matter to ensure closing on time.
Now Are you ready to sell your home? Do you want to take control of your assets? Do you want to save thousands of dollars selling your home? If your answers are yes, please visit our website at www.realestatecorners.com to explore our for sale by owner package or our discounted flat fee full service. If you have any questions or need to learn more, please give us a call at (612) 483-1230
Charging 6% commission has become an outdated business model; with today’s technology the process of selling home has become easier and most cost effective. Some real estate brokers realized that fact and now agree to offer their services for a flat rate fee instead of charging sellers a percentage of the selling price. whether sellers choose between the “for sale by owner” services or full services at a fixed flat fee, this type of agreement enables the seller to enjoy better exposure in the real estate market at a discounted rate, but is it worth it for home sellers to go this route?
We’ll give you six reasons why a flat-fee real estate broker might be the best way to get the most return on your home investment.
1) Saving Thousands of Dollars
In most cases there are two Brokers involved in a Real-estate transaction, one representing the seller (Listing Broker) and one representing the buyer (Selling Broker). The Listing Broker gets a commission, (somewhere around 5-6%) from the seller upon successful closing on the seller’s property, typically the listing Broker gives half of the commission to the selling Broker. By listing with a flat fee option for a minimal fee, you are eliminating the commission (2.5-3%) that listing Broker keeps, saving Thousands of dollars while you are benefitting from the wide exposure as a result of listing your property on the MLS.
With our Broker Reciprocity system in place your property will appear on literally hundreds of other public websites that display MLS listings such as realtor.com, which means a chance to get a potential buyer not represented by an agent and you pay NO commission, saving even thousands of dollars more (you can do the calculation). The challenge is to get your property listed within that database in which flat fee brokers will give you the access to it.
2) Marketing the property
Once the flat fee broker listed you property on the MLS, the listing will be seen on hundreds of real estate related websites, in addition, Brokers offer all the marketing material needed to sell your home fast, between listing on the MLS, installing a professional yard sign, color brochures, social media exposure, email blasts to agents in your market area, virtual tour, professional photos, staging and more.
3) Not tied to long term agreement
When you sign on with a full service traditional Real-estate agent, you agree to certain terms and conditions and you are locked into an agreement until your home sells, or you or your agent determine the relationship is no longer in your best interests. With a flat fee Broker, however, once you pay the fee, you are free to cancel whenever you want. This is an important feature as often sellers occasionally need to fire their agent for disagreements, lack of attention, lack of results or bad advice.
4) Pick & choose the services you need
When you hire a traditional Real-estate agent, he/she will charge you for a full comprehensive package services which some of the services included might not be necessary or has become an outdated business model to sell a home. With a flat-rate broker, however, you may be able to pick & choose the services on which you need assistance and which you believe you can tackle yourself. In this way, you are customizing the services to your needs and not paying for things you may not want.
5) More control
The flat fee services give property owners the opportunity to take control of the selling process and receive the same benefits as with a traditional listing. This option gives sellers the ability to reduce the overall expense of selling a home and use the saving as a negotiation power to get the house sold faster than similar homes in the area
6) Latest technology & exposure
Only agents and brokers have access to the one piece of technology most coveted by both buyers and sellers, which is the MLS. They also will use technology to pull market data and conduct home market analysis to help price your home. This is a critical service, and the flat fee Brokers offer the same access to many of the same technologies but at discounted rate.
Now are you ready to sell your home? Do you want to take control of your assets? Do you want to save Thousands of dollars selling your home? If your answers are yes, please visit our website at www.Realestatecorners.com to explore our For Sale By Owner package or our discounted Flat Fee Full Service. If you have any questions or you need to learn more, please give us a call at (612) 483-1230.