The other bit of advice I would add is that just as you should always get multiple mortgage quotes, you should interview multiple agents (and be open about it!). Good real estate agent are a competitive breed and will definitely put 110% into getting each and every listing. For the very good reasons that Ardel mentions above, you might not go with the “cheapest” agent that you interview, but more importantly, you should go with the agent that you feel is most likely to execute a plan to get you the most money for your home! Best of luck!

Ardell

First, most times a For Sale By Owner is sold by an agent who comes to you with a buyer. So you end up paying for that agent who does not work for you, even if you are a For Sale By Owner. You don’t know until someone calls and comes a knocking just how much you may or may not “save”.

The big advantage of listing the property in the mls is to get the word out to a lot of buyers, not just those in your neighborhood or who happen to see your ad. A lot of agents won’t pursue a For Sale By Owner unless there’s no way around it because the buyer called the agent and wants to see it. Most times the agent will try very hard to find them something “better” that is listed for sale in the mls. So you might be working against yourself, in that regard.

So generally speaking you will have to pay the other agent who brings the buyer and the attorney, so you might be losing more than you are saving by limiting your pool of buyers to those who happen upon you.

I can’t tell if you are in the Seattle Area. But this is what I would do if you came to me with that scenario. You think you can get $300,000 and save $15,000. Let’s say you are right. I say I can list it at $319,999, stage it for you and set it up so you can get the $15,000 extra you need to get full and good representation. If you get the extra amount and everything goes well, you are happy. If I can’t get that much (and some times I know that when I see the house) you can discount the fee down to compensate.

But thinking a For Sale By Owner doesn’t pay any agents is not very realistic. Most For Sale By Owners are sold by agents who have buyers. Just because you don’t need or want to be represented does not necessarily mean the buyer will give up their buyer’s agent who helps them with the loan and escrow process.

If you can get your house up on the market, now, during the “off” season, when there is very little competition, you can likely get that extra amount you need to pay the commissions. If you spend all of your time getting your house ready, with the agent’s assistance, so it will sell higher instead of worrying about the commission, you will likely net more money in the end.

Buyers will pay more for a house that is showing in it’s best possible condition with all the little staging tricks. So focus on getting top dollar, more than you expect, than saving money.

I say this because of your price range. If you said your property was a lot more money and the commission was a lot more money, my advice might be different. I don’t give the same advice to all people, but this is what my gut is telling me you should do. Of course, I’d have to know more about the house to really answer the question accurately.

Best of luck!

Feel free to email me at Ardell@SoundRealty.Biz if you want to talk about this further.

Ardell

Ardell

My main point is that there is a market for full commission agents.

Respect,
Joe

As to your comment that a savvy investor of multiple properties knows to ask about options, that is my point. They shouldn’t have to ask that question. The options should be offered, not asked for. That gives the “sqeaky wheel the grease” and the poor nice guy the bum’s rush. It is hard to train agents to be fair. At the end of a transaction, if I feel the fee is higher than it should be, I cut it right there at the table, even though I don’t have to and no one asked me to cut it.

That is not determined by the size of the fee. I do a mental calculation of my time invested and whether or not the client did their part in the process to make things less difficult. A myriad of factors determine what is fair and what is not fair. Sometimes I buy them a washer and dryer. Sometimes I pay a handyman to go over and do some things I heard them want to do as we discussed the property during escrow. There are many ways to provide fairness and even the score at the end of the game.

On another note, we’re hiring an agent today. She told us what she wanted as a split and we knew that was less than what we had planned to offer her. We gave her what we had planned to offer her and she almost fell on the floor when we offered to pay her more than she wanted. You do what is fair, not what you can get away with.

Nice chatting with you. If I knew your last name I’d stop by and say hi when I’m “in the neighborhood”. Visit my blog and let’s chat some more. Just click the big button on my site SearchingSeattle.com.

Ardell