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You Don't need a real estate agent. You can buy and sell real estate! - By: Earl Huse, Posted on: 2006-12-15

You don’t heed a Real Estate Agent to buy or sell real estate.
You can do it yourself.

By: Earl L. Huse JD

How much does it cost to sell your home using a real estate agent? Real estate agents charge 6, 7 or even 8% of the sales price of your home for their commissions. This translates into how much money you have just given to someone else to do your work for you. In other words, how may thousands of dollars have you lost by having someone else sell your property, and if you were to sell it yourself, what could you do with that extra money?

Sales price (when escrow closes) of home: $100,000.00 Assume your equity was: $ 20,000.00 6% commission: $ 6,000.00 Net received (with 6% commission): $ 14,000.00 Assume your equity was: $ 20,000.00 7% commission: $ 7,000.00 Net received (with 7% commission): $ 13,000.00 Assume your equity was: $ 20,000.00 8% commission: $ 8,000.00 Net received (with 8% commission): $ 12,000.00 You do the math on the sale of your home. What is the sales price (appraised value), and what are the loan (mortgage) balances? The remainder is your equity. What are the real estate agents commissions? What is left over (after customary seller closing costs) is yours. Here is how to set it up:

Example: Your home: Appraised value: $100,000.00 $__________ Loan pay-off balances: $ 80,000.00 $__________ Equity: $ 20,000.00 $_________ Brokers commission (6% of Sale): $ 6,000.00 $__________ Sellers net: $ 14,000.00 $_________ You have decided to sell your home for whatever reason and now comes the tedious task and decisions as to which Real Estate Company or agent to select. You have heard from your friends and neighbors that a particular company and agent is excellent to use. Your co-workers tell you something different, so the hunt for the perfect agent begins.

Where do you begin? What type of agent are you looking for? The top listing agent in a company? Did you know that many times the top-listing agent in a company is so busy you never see him? They use “assistants" to do most of the work for them. There is nothing wrong with this type of real estate agent, sometimes they are very effective in their presentation, and even get a buyer in a few days if that listing agent is also a selling agent. Not all listing agents are selling agents, and not all selling agents are listing agents.

A listing agent is a real estate agent associated with a real estate company (either as an agent or as a broker) and meets clients to “List" their home for sale. The listing agent uses a variety of marketing tools to establish the value of your property such as area “Comps" (comparables) that are obtained by appraisers by doing a “Drive By", that is, an appraiser will actually drive by your home to establish an approximate value based on various conditions. Another comp used is that of local Title companies. The title companies will provide (usually at no charge) what is referred to as a comparable of recent sales for a specific property. This gives agents a value of recently sold properties within a specified area (street, city, etc.) that can be applied to your home.

The most effective determination of property value is by the agents using computers that contain a data base of information that is relevant to your area home sales and can establish a pretty accurate sales price for most homes.

The other listing agent is sometimes called an “Up Agent". Real estate companies do not like to have their agents referred to this way, and most agents do not like being referred to this way either. But what an “Up Agent" is, is an agent who has been scheduled to work in the office at their desk for a specified date and time and as a result (called “Up Calls"), they receive incoming telephone calls in regards to listings (properties they have seen and want information about), new clients (those seeking to purchase real estate), and those looking to list their property. Most of the time, these agents are the “Rookies" in the industry. They have to pay their dues as most people do in many professions. Nothing wrong with this type of agent. Many times they will work harder for you then the listing agent who is so busy they use assistants to do most of their work.

Now is the time to let your fingers do the walking, if you are not sure which agent to or company to call. How long does this take? It could take days, even weeks. It would depend on how long you want to wait to list and sell your home (urgency factor) and what you are trying to accomplish through an agent.

Now that you have selected several (three, four, five, or even six) real estate agents, you need to schedule an appointment with them at your home for a time that is convenient for you. This will be an experience in itself. Try and mentally select a time in your mind that you want an appointment for. Specific day, time, and place (front yard, back yard, swimming pool area, in front of the garage, etc.) to meet the agent(s). Start calling them and see how many will tell “you" when they will meet you, the day and time that is most convenient to them. The rules start to change when you think you are winning.

The agent should show up, being the profession they are, within a reasonable time frame when they said they would be there (never believe an agent when he tells you he couldn’t find your house and that is why they are late. Agents should always know where and how to get to a potential listing. They should drive by the property and neighborhood the day before the appointment with you so they know exactly where they are going and what features and benefits are close to your home so these can be included into their presentation and marketing plan proposal to you when they meet), with area comparables, (some will disregard your concerns about the beautification, improvements, etc. you have done to your home) what they suggest the home should sell for, and somewhat of a marketing plan in order to expose your home.

There are factors that you must consider here are some of them: Are “Open" house presentations scheduled, and if so, how often.

What they plan on doing to promote the sale of your home over competition.

Do they plan on advertising you home in the newspaper, if so, when and which one.

Will they have brochures available in a “take one" stand placed on your property, and if there are to be flyers, will they include the price (some agents do not include prices on flyers because they thing that if a client thinks the price is too high for them, they will not call the agent. Agents want clients to call them so they can “pre-qualify" them for your property or properties they think the client may fit into. The agents will every marketing tool they can in order to promote additional clients for themselves. Nothing wrong with this, if that is what you are looking for in a business relationship).

The property will be listed in the “multiple listing" for your area.

Is the agent linked into a “relocation" service whereby your property can be looked at by other agents in other parts of the country that may have clients moving into your area and looking to purchase.

Is the agent you are dealing with knowledgeable in a variety of creative finance techniques that afford him the luxury too not only understand your needs, but the needs of other clients as well. In other words, should an exchange be offered, can he handle it? If an AITD is proposed, does he understand the ramifications of it and know how to present it so all parties involved are protected? What about an Equity Participation offer, does he know what it is, how to structure it, or, know where to go for help?

Whose interest is the agent really looking out for, yours or his? It is the fiduciary responsibility of an agent to represent his client in the best interest possible, but many times, this fiduciary responsibility is based on how fast the agent receives his commission check, and how much or how little work is done in order to get it.

The one and only important thing to remember about real estate agents, their companies and real estate brokers, is this:

YOU DON’T NEED A REAL ESTATE AGENT OR REAL ESTATE BROKER TO SELL YOUR HOME TODAY! YOU CAN SELL IT YOURSELF AND SAVE MONEY.

Here are some actual cases I have assisted clients with in the preparation of selling their homes “For Sale By Owner" based on the factual information given to me so that they could decide if selling their home through a Realtor would best suit their individual circumstances. There certainly is nothing wrong with using real estate agents to sell your home.

Do not misunderstand these writing by interpreting that agents are not knowledgeable in their profession, are not professional, and are not willing to assist you. Most are professional, knowledgeable and willing to assist you in any way they can.

What this author is indicating is that you do not have to use an agent to sell your home. You have choices and for most homeowners who are selling their homes, they do not understand the basics. This book is dedicated to those wanting to know the basics and how to successfully sell their own home.

Earl Huses’ Real Estate Series

Visit my website at:

www.howtohavezeromortgagepayments.net

Article Source: http://articleowner.com

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