When it comes to selling a home, data has shown that working with a top real estate agent leads to a higher final sales price. So if you want the best outcome, then you need the best person on your corner. But what's the best and easiest way to find them?
Well, let's review the main ways you can find an agent. It quickly becomes very clear that using a smart platform gives you advantages beyond the traditional methods.
Personal Referrals
Working with an agent can increase the likelihood of selling your house above the estimated market value, but it's not a guarantee. A skilled and experienced real estate agent can provide valuable guidance and expertise throughout the sales process, including performing a comparative market analysis to give you a general home value estimate, marketing it effectively, and negotiating with potential buyers.
You may know an agent, or your friend or family may recommend an agent. However, ask yourself the following two questions: Is that a top-producing agent for your type of property? Is that a top-producing agent for your specific neighborhood?
There is a significant compound value of a skilled agent who deals with your property type. For example, a city condo with limited square footage is a significantly different asset class than a sprawling single family home. You need someone who can price your property correctly, market it in the best way possible, negotiate better than anyone, seamlessly guide you through the transaction, recommend and manage the right vendors for title, escrow, repairs, staging, photography etc.
If you aren't sure of an agent's suitability for your type of property, then always check out their performance data points. See what their recent sales look like and if they've sold similar properties.
The other major factor of choosing an agent is how versed they are in your local market. They need to have sold comparable homes in your zip code, so they can properly assess what your house worth is in today's market.
Remember, not all real estate agents are created equal, so it's important to choose one who has a track record of success in your local market and who you feel comfortable working with. By working with a reputable and experienced agent who is committed to helping you achieve your goals, you can increase your chances of capturing the true value of your home. Of course, the chances of this ideal agent being someone you personally know are slim to nil.
iBuyers
Selling your house to an iBuyer like Opendoor or Offerpad can offer some advantages, such as a streamlined process and a rapid sale. However, there are also some potential pain points to consider, such as:
1. Low offers: iBuyers typically make offers that are below a home's market value, so you definitely won't receive the full value of your home. They use an automated valuation model then discount that number even more -- which reduces your final take home significantly.
2. Fees and commissions: While iBuyers may advertise that they don't charge traditional real estate commissions, they often have their own fees that can be higher than what you'd pay with a traditional agent. We've seen as much as 9% transaction fees from iBuyers.
3. Limited market: iBuyers may only be active in certain markets, so if you're outside of their service area, you won't be able to work with them.
4. Repairs: iBuyers may require you to make repairs or upgrades to your home before they'll make an offer, which can be costly and time-consuming. They generally make you pay for the repairs as well.
5. Lack of personal touch: Selling to an iBuyer can be a very transactional experience, and you may miss out on the personalized attention and guidance that a traditional real estate agent can provide.
The dirty little secret of iBuyer programs is they typically sell your property 2 weeks later for more money. So while they may seem like useful online tools, they are just home flippers in digital disguise.
For Sale by Owner (FSBO)
A quick word about FSBO. Selling your home yourself, or "For Sale By Owner" (FSBO), can be an appealing option for some homeowners who want to save money on real estate commissions. However, there are several disadvantages to consider, including:
1. Pricing: Determining an accurate estimate for the value of your home can be challenging without access to market data and real estate expertise. Professional agents have advanced systems and know how to comb public records to triangulate the magic number. Pricing your home too high or too low can hurt your chances of a successful sale.
2. Marketing: Without the help of a professional real estate agent, it can be difficult to effectively market your home to potential buyers. This can limit your exposure and lead to a longer time on the market and more hold costs.
3. Negotiations: Negotiating the terms of a sale can be complicated, and without the help of an experienced agent, you may not get the best deal.
4. Legal issues: The legal requirements of selling a home can be complex, and without proper knowledge and guidance, you may run into legal issues.
5. Time and effort: How do you value your time? You're going to spend a lot of time managing the sale of your property. If you invest 100-hours into your home sale and you're not a trained expert in real estate with decades of experience and up to date with the latest market trends, are you really benefiting more than the 5% - 6% commission? Without a professional agent to handle the details, you may find yourself overwhelmed and stressed.
6. Limited resources: FSBO sellers may not have access to the same resources and networks that real estate agents have, which can make it more difficult to find potential buyers and close the sale. If you require ancillary services, like a mortgage lender or escrow company, you also have to find those by yourself.
Final Verdict
Ultimately, the decision of how to sell your house depends on your individual needs and priorities. It's important to keep in mind that the final sale price of your home will depend on a variety of factors, such as the local real estate market conditions, the condition and location of your property, and the motivations of potential buyers. It's important to carefully weigh the pros and cons before making a decision.
But if you want all the benefits of a top agent selling your home, then try TrueParity's innovative platform.
We've already identified the best agents in each neighborhood and connect sellers instantly. These agents will offer a home value estimator, for free, before you sign any listing agreement.
Post your home today, press enter, and let the best in the business capture your home's full value.
