The Biggest Dilemma...
The biggest dilemma when considering purchasing another home is deciding whether or not to buy first or to sell first. Either way is risky because you could end up owning two homes or no home at all. I go into detail into the specifics of how to do this effectively in my blog post HERE. But today I will be covering your options as a seller before you even hire an agent.
Let's face it, the real estate market has become a tough environment for buyers and sellers alike. Therefore, it's essential that real estate agents look for new and innovative ways to meet the demands of the market.
Fortunately, there are a few solutions:
# 1 - A Guaranteed Sales Program
Recently, many new and innovative programs have become available to the customers. Some agents actually guarantee the sale of your home and take away all of the worry and stress associated with selling and buying another home.
This is a great way to sell your home fast without even listing it. You won't get the highest price for your home if you choose this option, but you also won't risk anything. In order for a company to offer you the perks of selling your home hassle-free, they need to make sure that after they acquire your property and do the necessary repairs, they'll make a profit in the end.
So, while this is a very convenient way to go, it doesn't give you the highest possible price compared to when you put it on the market on your own.
In the Metro Atlanta area, I've seen companies like Open Door and Mark Spain Real Estate offering similar programs. Even Zillow is using local brokers and purchasing homes. They'll give you an online estimate of the value of your home (on the lower end), than they'll subtract about 7% for the real estate commission and maybe other junk fees. If you accept the offer, they'll send a home inspector to estimate repairs, which will also be subtracted from your bottom line. After that you can go to closing without any showings and hassle.
While this might be an option for some home-sellers who have a lot of equity in their homes and just want to move on with their lives, it might not be an option for others that don't want to pay out of pocket and they may need to do it the traditional way.
# 2 - Use a Traditional Agent
If you put your home on the market with a traditional real estate broker, you will pay about 6% in commission when the property is sold. There are no upfront fees and your agent takes care of all of the details and acts as your exclusive agent, negotiator, facilitator, and liaison between you and the buyers.
The buyer agent's commission is included in the total commission. If there is not a buyer agent, you still owe the total commission to your broker (the commission is set up upfront). Your agent will then take care of both sides of the transaction and make sure you get the highest possible price for your home for the least amount of time and hassle.
# 3 - Use a Hybrid Real Estate Broker/Agent
This is another real estate model. You will pay a flat fee upfront, regardless if the property is sold or not, and then a very small percentage of the sales price when your home is sold.
You might have an option to pay as you go (A-La- Carte Services) based on what you need. The company might also give you an option to not pay the buyer’s agent commission if there is no buyer’s agent. They may also give you an option to sell your home yourself and just have it listed and marketed on your local MLS for a flat fee with no representation.
We, at The House Squad, have a model similar to this. We only charge you fees based on the services you want, not a commission like with a traditional agent.
While this is a great money-saving option, it’s not recommended to the non-experienced seller, especially if you have to buy and sell simultaneously. In the situation that you will be buying and selling a home, you really need an agent by your side at all times, so traditional real estate broker might be your best shot.
Comment or contact me below if you want to find more about our services and how I can best assist you in your move.
Have a great week!
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