I’m considering listing my home myself but give selling agent extra commission – thoughts?
My listing has expired with very little work from the listing agent. So, I’m thinking about using a service that, for a flat fee, helps you put your listing up on the MLS. Then I could give an extra percentage point or so to a selling agent. This isn’t a buy owner thing; it’s a flat service company that just helps you list your home. For any realtors, would the extra commission help entice you to show my home more often?
The “limited representation” scenario you present is gaining in popularity with many home sellers.
If you are experienced in buying and selling real estate, it might work for you. And offering an increased commission may entice a buyer’s agent to show your house to their client. But, the house has to be right for the buyer, for the right price and the right terms before it will actually be sold.
Also, consider that the buyer’s agent is representing the buyer’s interests and not yours. You may not realize that the offer being made is contrary to your best interests.
As well, the transaction can be a very stressful situation and you will have no one advising you, unless you hire a lawyer to review the contract for you. And you will be responsible for negotiating with the buyer’s agent.
You didn’t say how long your house was listed for sale with your last agent or when the busy season for real estate is in your area. In a typical year, our busiest time is from mid-February through end of August. It slows considerably from September – mid-November and then it’s VERY slow until end of January.
Is the real estate market in your area still *healthy* with normal, or almost normal number of transactions and sales prices?
You don’t say what you think the eventual sales price of your house will be, but think long and hard about all aspects of what is involved. You might want to do as suggested and interview a few other listing agents. Most listing agents in this economy are ready to be frank with Sellers about what to expect when selling their houses. However you decide to go, you may benefit from this information.
And don’t forget to calculate what your real costs will be for NOT using an agent who will be paid ONLY when your house is sold. Your flat fee for getting your property listed in MLS and use of lockbox (for how long? If the house doesn’t sell in that time, will you pay a second fee to continut the listing?). Cost of producing high quality color property flyers. Cost of producing virtual tour. Cost of lawyer to review any offer you receive – unless you feel very qualified in this regard. Cost of the commission you will be paying to the Buyer’s agent.
Good luck.
