Why Paying a Realtor 6% to List in MLS is Nuts!
A For Sale By Owner Homes broker can list your
home on the same MLS for as little as $349
No home seller who understands how real estate works would ever list a home for sale with a traditional 6 percent Realtor. There are simply no good reasons to pay 6 percent - or more - of the value of your home just to find a buyer. If you don't believe that, consider these myths and facts about 6-percent Realtors. Many agents actually use these lies as sales pitches to try to convince you to list your house with them instead of a For Sale By Owner Homes broker.
Myth: Only a 6-percent Realtor can put your home into the local multiple-listing service, or "MLS."
Fact: Any broker who is a member of the local MLS can list your home for sale and put it into the MLS. That means you can list your home with a For Sale By Owner Homes broker and still get the same benefit and exposure of the MLS.
Myth: Only a 6-percent Realtor can provide "full-service."
Fact: "Full-service" is a marketing claim that agents use to suggest they provide more services than they actually do. In fact, the MLS is the most important and valuable service that any broker can offer. A 6% Realtor can't do anything for you that can't be done just as easily by you or your For Sale By Owner Homes broker.
Myth: A 6-percent Realtor can sell your home faster.
Fact: Your home will take longer to sell if you hire a 6-percent Realtor. That's because the price of your home is usually the biggest factor that determines how fast your home will sell. If you agree to pay a 6 percent commission, you'll need to accept a lower profit for yourself or list your home at a higher price to cover that extra amount. When you list your home with a For Sale By Owner Homes broker, you'll be able to sell your home for less, but still keep just as much - or more - for yourself.
Myth: A 6-percent Realtor bring you more buyers
Fact: When buyers call a traditional realty office to ask about your home, the Realtor who takes that call will typically treat that buyer as a sales lead and ask him or her questions that have nothing to do with selling your home, but everything to do with selling any home. In effect, your home is just a lure for buyers to call. If you don't believe that, call any realty office, ask for more information about a home that's for sale in your neighborhood and see what happens. When you list your home with a For Sale By Owner Homes broker, buyers will be able to call you directly, so you can tell them about your home. And remember that 6-percent commission? Half of it goes to the buyer's agent. That means you can save that 3% when your buyer is referred by your For Sale By Owner Homes broker.
Myth: Buyers feel more comfortable buying a home from a 6-percent Realtor.
Fact: Buyers don't care which broker lists your home or how much the listing broker is being paid. They just care about the home.
Myth: Realtors refuse to show homes listed with a discount brokerage company.
Fact: When you list your home with a For Sale By Owner Homes broker and put that broker's real estate company sign in your front yard, buyers won't even know that you've saved a bundle by listing with a For Sale By Owner Homes broker. All For Sale By Owner Homes brokers operate under typical real estate company names that do not convey any "for sale by owner" message.
Realtors get paid only if they show buyers houses that they want to buy. If a Realtor didn't show a buyer your house, that buyer could still very easily find out about your house without the Realtor's help and then the Realtor wouldn't get paid.
Myth: A 6-percent Realtor will "market" your home.
Fact: Most Realtors expend very little effort, other than putting the home in the MLS, to market individual homes for sale. If a Realtor has promised to "market" your home, ask for specific details about his or her marketing plan. Don't be surprised if all you hear is vague and noncommittal blather. And if the Realtor offers to place your home in a magazine that's distributed to "hundreds" of supermarkets, don't be impressed. These magazines are designed to promote the Realtors, not the homes that are for sale: The photos of the homes are tiny, the descriptions are bland, and the information is outdated since each issue can take months to be produced and distributed.
Myth: A 6-percent Realtor will market your house through informal "networking" with other Realtors.
Fact: Realtors who are actively working with buyers don't have time to hang out at bowling alleys, charity luncheons or golf tournaments. Nor do they have time to read spam-like marketing messages from other Realtors. They're too busy using the MLS to find houses for buyers.
Myth: You need an open house to sell your home.
Fact: Most of the people who go to open houses are just Lookie Lous. It's highly unlikely that someone will just walk into your house and buy it. Most buyers start their search for a home on the Internet, and they can easily find out about homes that are for sale even if they aren't held open. The primary purpose of an open house is to help the Realtor get more listings from other people in the neighborhood. When you list your home with a For Sale By Owner Homes broker, you can easily hold your own open house if you want to.
Myth: 6% Realtors are looking out for your best interests
Fact: 6% Realtors care most about their commission. The proof is in their unfair listing agreements. If you sign a listing agreement with a 6-percent Realtor, chances are you'll be obligated to pay that commission even if you sell your home without the Realtor's help! That's because the standard agreement that most Realtors use requires you to pay the commission if your home is sold during the listing period even if the Realtor just puts up a sign and walks away. These contracts are heavily skewed to protect the Realtor, not you.
And once you sign an agreement, there's no getting out of it even if you're unhappy. A 6-percent Realtor may tell you your house is worth much more than its true value and then pressure you into signing an agreement that allows him or her to hold your house hostage until you reduce your price. If you try to get out of the agreement--maybe because you don't want to sell your home at that price--the broker will demand to be "reimbursed" for thousands of dollars of expenses he or she supposedly incurred. Meanwhile, no other agent can list your house because it's already active in the MLS.
Don't get caught in 6-percent trap! Be smart, save money, and list your home with For Sale By Owner Homes!
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