3 Reasons to hire a seller's agent

If you’re selling your home, you should expect a list of expenses. The commission you pay the seller’s agent is a significant part of the cost of selling your home. This negotiated percentage pays for the valuable work your seller’s agent, also known as a listing agent, does for you: preparing the home, marketing it, showing it to potential buyers, and negotiating not only the sales price but the repairs and appraisal as well, all things that help you through the selling process.

Some owners try to save money by not working with an agent and listing their homes “for sale by owner.” But FSBOs, as they’re known in the trade, require time, effort, and real estate know-how. FSBOs also incur their expenses, ones that people who hire listing agents don’t have to pay.

For most homeowners, it pays to hire a listing agent. Here’s why:

Getting the price right

An experienced real estate agent can help determine the price for your home, in part by reviewing recent selling prices for comparable nearby homes. Without an agent, you’d need to research the market and find these “comps” on your own.

A seller’s agent can also list your home in a local Multiple Listing Service database, where buyers and their agents can find it. If you’re selling on your own, you can pay a listing agent a one-time fee for this service. It would be much less than commission, but you’d still be paying for a service a listing agent would normally provide.

Negotiations and savvy

Listing agents can help you negotiate with potential buyers and respond to multiple offers. Once you accept an offer, he or she will also help manage the scheduling and negotiations of appraisals, inspections, and related tasks before the deal closes.

Some sellers decide to go the FSBO route, and then hire listing agents when their properties don’t attract buyers. But if your goal is to sell your house fast, you might be better off starting with a pro who can quickly draw traffic to your home.

Even if you don’t think speed is a factor, potential buyers might offer lower-than-desired prices if your house has been on the market for a while,  this is called being "market worn". They might also make lower offers if they know you aren’t paying a seller’s commission.

Commissions are negotiable

The Commission you pay is ALWAYS negotiable. You might be able to negotiate a lower commission or find an agent who charges a flat rate for his or her services. However, Be Careful... as the saying goes "you get what you pay for".  Many agents do not have the skill set to make your selling process smooth. 

It’s also worth noting that listing agents don’t pocket the entire commission; they may split it with the Buyers Agent, their Broker, the Franchise they work for, their team leader etc... If you plan to sell your home yourself, you might attract more buyers if you offer to pay their agent’s share of any commissions. But this means that in addition to paying for an MLS listing and handling the sale process yourself, you’ll pay a buyer’s agent a percentage of the sale price. So selling your own home might NOT be as big of a savings as you expected.

Should you ever try to DIY?

Hiring a seller’s agent is best in most cases, but there are some times when selling your own home is a good choice:

You’re in a seller’s market: If you’re in a hot area, it might be easy to sell your home. But you’ll still need to review and negotiate offer letters. Even if you don’t work with an agent, consider hiring an attorney or an escrow officer to help you through the closing process.

You already have a buyer: If someone has already contacted you about purchasing your home, it’s possible to put together a private sale without a real estate agent — but it’s still a good idea to research selling prices for nearby homes and get legal advice before agreeing to a deal.

The most important reason to hire an agent to represent you during the selling and buying process is to make sure you are staying within the laws that you as a consumer or obligated to no matter if you sell on your own or with an agent.   Don't know what those legal obligations are?  Book a Discovery all with us. 

This article originally appeared on NerdWallet and edited to be more correct by Yvonne Arnold