With the increase in today's prices the thought of 'giving' a Realtor a percentage of the sale money doesn't seem to make sense. Before a home for $150,000 with a 6% commission rate means real estate fee's are costing the home owner $9,000. Now with home prices more than double that the fee's are $18,000 and there are no increase in work for the realtor so I'm going to go it alone and save myself BIG money!
Now, you have to ask yourself something. If you were going to make an investment into a business. The business was one you knew a little about but not everything, it would require some legal work as well to complete the transaction and there was potential the business could be a dud. What if there were dozens of similar businesses you had to choose from, how would you differentiate the 'good' ones from the 'bad' ones? This business would require a huge amount of money, so much so that you would need to take a loan that would take decades to repay? Chances are you would hire someone who can guide you thru this process, help you find the right business for you and would have a sound knowledge of these businesses such that they would be working for you to get you the BEST price for you, be it selling or buying? Oh, you could also negotiate with this professional to pay them a percentage or a fixed fee to limit your expenses? They would be working for you while you were concentrating on your regular job guiding you around potential problems and culling thru the dozen of businesses to find the ones that are right for you to select from.
This is the value a Realtor brings to ANY real estate transaction. As a buyer you pay nothing and the Realtor does all the searching for you. They negotiate on your behalf to get you the BEST price for the property, typically saving you money! Realtors job is real estate, they know the good from the bad and put their clients best intersts FIRST, not their own. The better your service the more people they clients will tell about the Realtor the more business the Realtor gets. Realtors only get paid when there is a sale!
Did you know that most people who try to sell their own home (For Sale By Owner) to save themselves money end up using a Realtor? The Realtor is a professional marketer who has an enormous reach to potential home buyers, many more than will ever see the sign in the front yard. Guess what else, the money they save by selling it themselves is typically lost. Why you ask? Because most people making an offer will offer market value minus a Realtors commission! The seller will have their home on the market for longer (much, much longer) and in the end will sell for much less (which is why so many end up having a Realtor sell for them.)
- Negotiation. Someone who does this for a living or non-professional
- Searching. Someone who has all the tools and time or someone with limited tools and time
- Land-mine Avoidance. Someone who has vast experience and training with a trained eye or someone who is emotionally attached or 'love blind'
- Marketing. Someone who is savvy to the CURRENT market with a HUGE amount of possible buyers/sellers or someone who is a casual observer with only neighborhood reach
- Money. Both buyers and sellers save time (which = money) and money and in the end this is the desire.
A good realtor knows their value and will work hard for you, everytime.