Send Me More Information On
		For Sale By Owner Selling A Home Buying A Home Mortgages Home Value Credit Repair Contract for Deed Stop Foreclosure Find A Realtor® Short Sale
	Zip:
	E-mail:
		Low Cost Professionally Designed Websites

 

Seller info

What is the best way to sell my house

This information is intended to help you determine the PROS: and CONS: of the many different real estate platforms in the market place so that you can make an informed decision when selecting which model best fits your selling needs.

FOR SALE BY OWNER

In the past five years many internet websites have popped up claiming ‘FSBO’ status including www.FSBO.com, www.ForSaleByOwner.com, and www.ByOwner.com. Many sellers have tried this approach in order to save commission. A FSBO website is basically an advertising method much the same as the MLS is to Realtors®. PROS: Cost and Content. They are fairly inexpensive ($99 to $299) to advertise on and blow away material provided in hard copy print such as magazines and newspapers for roughly the same cost. The more exposure the better the chances you have of selling your house. CONS: Advice. A FSBO seller is completely on their own in regards to advice. There is nobody there to make sure you price the home right and that you do not make dramatic mistakes that could tie up your house for months during negotiation. The stats are overwhelming as described in several recent articles claiming that just 7% of FSBO’s sold their house without the help of a licensed professional. In many cases advertising your home on just one low traffic website could also significantly increase the days on market. Make sure you have some knowledge of how a real estate transaction works when choosing this option.

TRADITIONAL FULL SERVICE FIRMS

These names include www.Remax.com, www.Century21.com and www.ColdwellBanker.com. PROS: They are all very well established in the industry and have household names across the country. They handle all of the expenses associated with selling your home which include print advertising and continue to handle a majority of all real estate transactions across the country. CONS: They are typically on the higher end of the commission scale, ranging from 6% to 7% depending on the market.

FLAT FEE COMPANIES

This model is a way to advertise to other Agents via the MLS and include www.FlatFeeMLSListing.com, www.ListByOwnerOnMLS.com, and www.FlatFeeListing.com. They operate much the same as a FSBO format. PROS. Inexpensive. Usually less than $400. CONS: No advice. There is not enough money in this for a Listing Agent to give the seller any kind of service. And that’s what you should expect. Recent changes to the law in many states requires licensed companies to provide minimal services to their clients. You should also be prepared to offer a Buyer’s Agent Fee of 2.5% to 3.5% or Agents may not show your property to their potential Buyers. So the real cost is much higher then $400.

DISCOUNTERS

Many of these companies offer a tiered basket of services with the goal of helping the client save money and include www.ZipRealty.com. PROS: The client seems to be screaming for reduced commission transactions. CONS: National name recognition.

REFUNDERS

This is a recent addition to the Realtor® industry and is offered by many companies throughout the country. These companies offer the client a refund of the commission earned for finding you a house. Some take it further and offer a free listing in hopes to land the buy side of your transaction. PROS: Great concept. CONS: In reality commissions are paid from the Seller’s proceeds so the Buyer very rarely pays the Agent to find a property. To land clients these companies need very expensive advertising budgets making it difficult to earn an acceptable income. If an Agent has a hard time earning a living they likely will not provide a level of service acceptable to a Seller’s needs.

VIRTUAL OFFICES

This model strives to help clients buy and sell from the confines of a computer with little to no physical interaction between the Agent and client and includes www.Redfin.com. PROS: Inexpensive cost. CONS: Your agent may be miles and sometimes states away from the you versus a hands on Agent who knows the market and neighborhood.

HYBRIDS

These companies offer services that range from FSBO to Full Service and combinations of both such as www.JKRRealty.com. PROS: It offers a seller several options on service levels along with reduced commission transactions and crosses into both the FSBO and full service fields. The Seller chooses the level of marketing exposure and can participate in the sale of their home and benefit financially from it via severely reduced commissions. For example, if you agree to show your own home to potential buyers outside of the Realtor network your commission may be as low as 1.5% while retaining advice to navigate the transaction. CONS: It’s a new concept.