Practically everyone who has put a property up on the market has wondered whether it was better to use an agent or go it alone. It’s a tough decision, especially in a soft market where every bit helps. Both sides have its advantages and disadvantages, as shown below. Sale by owner
Perhaps the biggest plus in selling your property by yourself is the cost savings in the commission. Usually, you’ll have to pay up to a 6% commission to your broker, which can mean big bucks. Let’s say your apartment for sale sold for $400,000. That means you would save an amazing $24,000 in commission, savings that you can use to either save and invest or use towards another apartment purchase.
Another plus in going it alone is that you call the shots, 100% of the time. You set the price; you decide how to market the house, etc., without any possible ulterior motives that an agent can bring to the table (i.e. except low-ball offers for a quick sale). And with today’s explosion of the Internet, you can advertise your apartment for sale in just about any region of the country, for free, without an agent.
The downside of a sale by owner property is that you won’t be able to utilize the Multiple Listing Service (MLS) to advertise your apartment for sale unless you’re a broker. You can circumvent the system, but you still won’t be adequately represented. In other words, your local brokers might not even know that your apartment for sale is on the market unless they scan the local ads or online property sites. Using an agent
When utilizing an agent to sell your apartment for sale, you’re paying for their expertise. Even though you’ll be paying a 6% commission fee (a real disadvantage), you’ll be getting something in return (i.e. purchase contracts, negotiation expertise, knowledge of title searches and escrow procedures and requirements, etc.). Your apartment will also be listed in the Multiple Listing Service (MLS), so that all of the local agents will be aware that your property is on the market even before your first open house. In other words, you’ll have all of the other broker’s clients at your disposal. |
