The Pros and Cons of Hiring a Realtor®
If you are planning to sell your home, one of the key decisions you need to make is if you are going to hire a Realtor® to represent your property listing or not. You do have the option to go it on your own with a “For Sale By Owner” (FSBO) transaction or selling directly to a cash real estate investor.
For the most part, selling with a real estate agent will bring certain advantages you might not get when selling your house on your own. There are a few drawbacks, as well. Let’s take a closer look at both the pros and cons of hiring a Realtor®.
Pro: Higher Selling Price
Generally speaking, the primary benefit of having a real estate agent on your side is that you will get a higher selling price. They will bring experience to help with home staging and marketing. They will also be able to help you with reviewing purchase offers and negotiating all the important contractual details. In the end, their goal is get as many buyers interested in your property as possible. This ideally leads to multiple offers and you can accept the one that is most appealing to you.
Con: Commissions & Costs
One downside of hiring a Realtor® is that you are obviously required to pay them for their services. Most selling agents will collect a commission between 1-3% of the house’s final selling price. If you sell your property for $300,000, that means they are getting a check in the range of $3,000-$9,000. There may be additional expenses involved in the traditional selling process, as well. Your agent may recommend certain repairs or upgrades to increase marketing appeal. They may bring in a professional home stager or other service providers. Make sure you understand all the costs associated with hiring a Realtor®. A good agent may pay for themselves with great service and excellent selling price results.
Pro: Expert Guidance
It’s a good idea to talk with multiple real estate agents before selecting one to represent your home sale. Find someone you feel comfortable working with. They should instill you with confidence that they are working to protect your best interests and have the knowledge/experience to achieve the best possible outcome. They will be able to draw from their expertise to provide you with professional guidance and advice throughout the home selling process. Selling a house can be stressful, especially if you haven’t done it before. A trustworthy agent can help make things go a lot smoother.
Con: It Takes Time
The traditional real estate process can be slow. You have to take the time to find a good real estate agent. Then, you will invest some time (and maybe some money) to get your house ready for the market. You will have showings and open houses to attract buyers. You will review offers, make counteroffers and negotiate the final selling contract. Finally, you go through the closing/escrow process that may take 30-45 days to complete if the buyer is financing the purchase through a mortgage loan. In total, it will likely take several months to complete the entire home prep and selling process—and that’s if everything goes well. A cash home sale to a real estate investor or cash buyer will close quicker and you may not have to spend any additional time/money to fix up your property. Many cash buyers are purchasing houses in as-is condition because they plan to renovate it anyway.
Pro: Solid Contract
An experienced real estate agent will have prepared many sales contracts. They know what they are doing. This may be a problem if deciding to do it yourself as a FSBO seller. Again, it may take a little extra stress off your plate and ensure the final transaction goes as smoothly as possible.
Con: Less Privacy
Many home sellers choose not to hire a Realtor® simply because they don’t want to deal with a salesperson and they would prefer to avoid having a parade of buyers (most of whom are not even that interested in the property) coming through their home. Some sellers value privacy and simplicity. In this case, a fast, easy and safe cash sale could be a better solution.
If you are selling your home, contact PropertyLark today. We’ll be glad to make a fair cash offer on your house within 24 hours. We can help you complete a fast, easy and safe cash sale that can be closed within a week or two. Or, we can connect you with our great network of experienced real estate agents to guide you through a traditional home sale. We can help you explore all your home selling options and figure out what is best for you.