Tip 7. Use Real Estate Professionals Most Advantageously

The biggest disadvantage of using real estate agents is that their services are very expensive.

The price of using a real estate agent may include:

• helping you price your house;

• advertising and marketing your house;

• providing all required property disclosure forms for you to complete;

• negotiating for you the best possible price and terms;

• reviewing all written offers with you.

If you are able to do these tasks on your own, you may sell your home without any assistance from an agent, or you can ask the realtor to perform a particular function for a smaller fee. For example, if you need help in preparing a disclosure form or in showing your house to a potential buyer responding to your own ad or sign, you can ask a real estate agent to perform these services for a fixed fee or at an hourly rate.

Beware: some real estate agents might ask you to list your property in MLS, which could cost you up to 6% of the cost of your house. If you do agree to do it, make sure you sign a so-called Open Listing, or Exclusive Agency Listing. These listings provide a clause that if you sell your home by owner, you are not liable to the broker for a commission. The difference between the two is that with an Open Listing you can work with more than one real estate professional, while with the other you can work with only one. An advantage, of course, is that you could still sell your home by owner and pay no commissions, while an agent has been working for you. A disadvantage is that you must pay the commission if a professional does find the buyer.

Be wary of an Exclusive Right to Sell Listing, which provides that during the specified terms the broker has the sole and exclusive right to sell your home, and you must pay the negotiated commission no matter who sells your home.

For more information, please look at Negotiating the commission with a real estate agent.

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