If you own a house, condo, or other property, you most likely understand that real estate is a large investment. Since it is such a large investment, you may want to sell to recoup some of your financial investment. Unfortunately, most owners are not fully prepared for the selling process. Hiring real estate agents is essential, since these professionals understand the market and can help you and your buyers work through the legalities. Your agent will work on your behalf to get the best price for your home, but here are a few things your agent may not tell you during the process of selling your home.
Selling Your House Is Not the Only Goal of an Open House
Your agent may discuss the importance of hosting an open house. This set time is advertised online and through physical signs, allowing other agents and potential buyers to scope out your house without scheduling a private showing. Open houses are excellent marketing tools to drum up interest in your home, but they are also beneficial to your agent's professional career.
During an open house, your agent will welcome potential buyers to your home. They will answer any and all questions buyers and their agents may have, but they will also use the opportunity to hand out business cards and market themselves.
Of course, the main goal of an open house is to get your house sold, but your agent will also use the event as a marketing tool, though this shouldn't get in the way of them selling your house.
Commission Rates Are Not Set In Stone
If you hire an agent to sell your home, you will be responsible for paying a commission fee. This fee is usually paid at closing. For many, the commission will come out of the profits from selling your home. Unfortunately, you may need to pay out of your own pocket if you do not earn a profit with the sale of your home. This will be addressed before the actual closing.
On average, real estate brokers receive 6 percent commission for selling a home, which may need to be split with the buyer's agent. If your agent has brought in their own buyer, they will receive the entire commission fee. It is important to note that this commission fee is not set in stone. Many agents will negotiate a lower commission fee, so make sure to talk about the percentage before signing the contract to list your home.
Your House Isn't Worth THAT Much
Most homeowners are proud of their home, believing it is worth more money than it actually is. Although your agent will check comparable properties to determine the best price to list your home, you may think your home will sell at a higher price. This is one of the most common issues that occur between homeowners and agents. Realizing your home is only worth what other similar homes have sold for will decrease stress and help your home sell more efficiently.
Many agents will not work with a homeowner who believes their property is worth more than the market's average, since overpricing the house will hurt both the seller and agent in the long run. The house will not only sit on the market for a longer period of time, but it will also require more maintenance to prevent the property from depreciating further.
If you list your home for a price that is above market share and do not receive any offers within a few weeks, dropping the price is essential.
Selling your home does not have to be a stressful or costly ordeal. With these facts, you will be able to work with your agent to sell your home in a more profitable and efficient manner.