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Should you use a real estate agent to sell your house?

This is the first in a series on real estate and real estate agents. The goal is to provide clarity to sellers on whether or not they should use a real estate agent to sell their property.


 


As opposed to what many would suggest, the answer to this isn't by any means "complicated", it comes down to proper timing and equity. These are two very important factors when determining if one should list their property with a real estate agent. There are a variety of scenarios that must be considered, however. Take for example Mike, who owns 322 Lake Dr, bought it in 2005 for $150,000 and has accumulated great equity by way of appreciation and on-time payments. It just happens that he recently lost his job due to the raging pandemic - what should he do? Well, if he is able to keep up his mortgage payments for at least 6 months then he might be able to sell his property to a retail buyer. This can be done in two ways:

  1. With a FSBO short for - "for sale by owner" OR

  2. Through a real estate agent

FSBO would actually be my first choice since I understand the process of buying and selling real estate. However if you happen to know nothing about real estate, don't fret. First you have to make sure you have a strong understanding of your property's value, this is done mainly by looking at what similar homes in square footage, amenities, condition, year built, type (ranch, no basement, two-stories etc), and lot size have sold for in the neighborhood. Also, make sure to contact and interview a few title companies and simply ask them what the process is like, they will help you since you are bringing business to them. You can even talk to their in-house counsel for free.


The other option is utilizing the services of a real estate agent. See, there are many benefits to working with an agent, a good one will know the market quite well, have a great awareness of your home's value and will handle the entire process, many times from A-Z without hassling you. This comes with a few downsides though, depending on the condition of the property they will ask you to make repairs, stage your property and charge you a 3% commission from the sale price. These commissions are usually as high as 6% because there often are two agents involved, a seller's agent & a buyer's agent - each taking 3% of the top of your proceeds.


Additionally, for both FSBO and agent options, an on-market sale can take months and then once a buyer is found, closing can take up to 60 days from the day contracts are signed.


Here's the trick, if you are on a time crunch, and this can be for a variety of reasons like being behind on taxes, mortgage payments, divorce or medical reasons etc - selling fast can make your life much easier. That is exactly what Jeer Properties does, we buy homes fast, pay cash, no repairs, commissions or inspections required and close FAST! However you have to pay close attention to how much time you have to meet your financial needs and your home equity which is basically the value your property has gained in your favor through appreciation or payments you've made.


Give us a call if you want to sell your home or if you just want to discuss your situation. We are always happy to help! Stay tuned for more great content!




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