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Paying average 6% commission to a Real Estate Agent when you sell your home is not what many home sellers want to do. There is the possibility to sell it “For Sale by Owner” by placing an add in the newspaper (costs
about $240 for 4 weeks) and it is one among many others, use a “For Sale by Owner” web site or put the “For Sale by Owner” yard sign up.
Everybody knows that you won’t pay commission on the sale and will try to get your price down so the only advantage you will have is that you are most likely to be more competitive because your price is more
reasonable than MLS listings.
Most buyers find there new home online by searching Real Estate web sites and take some first picks on potential matches for what they are looking for.
Since the buyer does not pay a Real Estate Agent when buying; most deals are closed by an Agent who does all the paperwork and takes care of the transaction. This is definitely an advantage for the buyer. On the
sellers site when the property is listed in the MLS the so called “listing agent” puts the property on the MLS and when it comes to the closing he/she will collect usually half of the average 6% listing commission, the buyers agent gets the other half.
If you are able to show your home yourself and negotiate your contract you can save half percent of the commission (about $6000 on a $200,000 sale and have a nice vacation instead paying it to the listing agent.
Although the Real Estate industry does not like this model too much if an agent can make a deal because your home is well priced and buyers are interested and want to see your home he/she will show your home. Although
the code of Ethics prohibit refusing to show a so called “Flat Fee Listing” you could get calls from agents suggesting that they have a buyer but in order to show your home you have to list with them as a full service agent and pay full commission.
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