Do you need a real estate agent to sell your home in today’s market?

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High prices and low inventory… This is the best way to take stock of the current real estate market.

Or, to put it another way, it is largely a seller’s market and buyers have little bargaining power. Not only are buyers fighting over homes to cash in on the low mortgage rates, they raise already inflated prices through bidding.

If you are thinking of selling your home, you are well positioned to make a profit. But how much of this profit do you want to keep? If you are hiring real estate agent To sell your home, you will give up some of that profit in the form of an agent’s commission.

In a normal housing market, it is easy to argue that it is very important to work with a real estate agent. But today’s housing market is completely different, and the question arises: is an agent really needed? Or is it worth selling the house yourself?

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What’s the right call?

If you hire a real estate agent to sell your home, you will usually have to pay a commission ranging from 4% to 6% of the amount for which your property is being sold. This means that if you sell your home for $ 400,000, you pay your agent $ 16,000 to $ 24,000. This is difficult to part with, especially if you plan to use the proceeds from the sale as advance payment at your next home.

On the other hand, selling a home can be stressful. You need to sell this home so buyers know it’s there, and you need to negotiate with buyers and accept offers that aren’t always easy. The buyer may come up with what seems like a great deal, but burdens him with unforeseen circumstances. In some cases, it may be able to pay to accept a lower offer for a house depending on the “catch” of the higher one. And the real estate agent is the best person to walk you through the process and determine the best deal.

A real estate agent can not only help you work with potential buyers, he can also help you prepare, sell and evaluate your home to help you get the big bucks for it. In fact, your real estate agent can get a sale price for your home that easily covers the commission you pay.

Returning to our example, let’s say you hire an agent who sells your house and negotiates on your behalf, so instead of commanding $ 400,000 for your property, you walked away with $ 430,000. Of this amount, you can pay between $ 17,000 and $ 26,000 for a commission. But even if you look at the upper end of that cost range, you still walk away with more money in your pocket than if you sold your home for $ 400,000.

So, even though sellers are heavily favored by the housing market today, hiring a real estate agent can still benefit you, especially if you find someone who is familiar with your area and whose fees are reasonable. And speaking of these fees, there is no rule that you cannot agree on them. If the agent wants to charge a 6% commission, you can instead lower that commission down to 4% or 5%. This way you get the best of both worlds – the help you need to sell quickly and profitably. and more money in your pocket.

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