In the age of Zillow, Trulia and the internet at large, do you even really need a real estate agent anymore? And if you do, which one do you choose?
Let’s run through the numbers. Say you’re selling your beautiful $500,000 home. On the surface, the buyer’s agent and I are going to split a 6% commission. For my part that means listing with me costs you $16,000. If you don’t list with me, you’ll save yourself that amount of money. Let me ask you a few questions though:
- What happens when an offer comes in $20,000 – $40,000 below ask? Will you feel confident negotiating that offer up to the full list price? How will you know whether the offer is fair or not?
- What happens when you when the inspection comes back and the buyer asks for concessions in the form of $10,000 for a new roof and windows? How will you know whether to fix them both, or credit the buyer the difference?
- What happens when you don’t get an offer for one month, two months or three months? Do you drop your price?
All of the sudden your beautiful home is being sold for $470,000 with an additional few months of carrying costs. Add to that the nightmare of all the showings and constant wondering all along whether your price was too high. What you’ve saved in commission, you’ve more than paid for in a lower price and needless stress.
Now imagine this. The day you list you have the confidence of knowing that your $500,000 list price is what your home is worth. We’ve already worked together to determine a new roof is worth the investment, but the windows are fine and are not something worthy of anything but a very small concession. In addition, here’s what happens:
- Your home is beautifully marketed online, via a 9,000 person email list, and with high gloss flyers canvassed across neighborhoods full of qualified buyers.
- Your home is staged with a selection from upwards of $80,000 worth of modern, minimalist furniture that is guaranteed to get buyers thinking about what it would be like to live there.
- Full price offers come in quickly, and offers over ask come in within the week, or even within a few days!
- I negotiate the best offer, take back up offers to keep the negotiating leverage high and we end up selling your home for 10k over ask in a few weeks.
In the first scenario, your net after commissions is $441,800 a few months after being listed. In the second scenario, your net $480,000 a few weeks after being listed. That’s a difference of $38,200 after commissions. That’s the difference I can make for you.