As a real estate lawyer in San Antonio -- and one who frequently deals with real estate brokers and agents -- friends and clients frequently ask me about the cost versus benefits of hiring a real estate professional when selling property. Suffice it to say that I believe that the benefits of professional representation are numerous, and I never recommend that a friend, client or family member sells real estate without the assistance of a licensed professional.
The counter-arguments I receive from Sellers are: 1) that the San Antonio Real Estate market is "hot"and should result in a quick/easy sale; 2) that in the modern era of social media, Trulia, and Zillow, marketing real estate is "easy;" and 3) that not paying a real estate agent a commission helps the seller "save money."
I don't find ANY of these arguments compelling. Rather, I think that the following five (5) reasons, alone, justify using a real estate broker as a Seller's agent in every transaction:
1) Real estate agents help establish a market-supported, realistic listing price. It's no secret, most FSBOs are overpriced. Virtually every Seller thinks that their home is WORTH the amount that they WISH TO RECEIVE. You know -- worth enough to satisfy the existing mortgage, pay closing costs, and still have enough for a tidy down-payment on a new property. The truth, however, is that the Seller's perceived value of the property is rarely the fair market value (what a willing buyer would pay).
By contrast, a licensed real estate agent can establish a realistic asking price formulated by data produced from performing a market analysis of comparable listings and recent sales. Further, the agent doesn't assign an "emotional premium" on the property. Thus, a real estate broker's involvement may help the Seller avoid the common pitfall of overpricing their home.
2) Real estate agents are not emotionally attached to your property. In addition to helping you avoid a hefty, unsupportable price tag based on an "emotional premium" (which has no value to anyone except you -- the Seller), a broker will not be offended by a low offer, a less than perfect inspection report, or critical statements from prospective buyers. This helps the process become more of a business transaction, and less akin to parting with a beloved family heirloom.
3) Real estate agents understand the law. There can be dire consequences to failing to make certain disclosures, not meeting deadlines and discrimination against certain categories of buyers. Chances are, you don't know the real estate laws that apply to and bind you. A licensed broker does. This can save you lots of money and grief later -- especially if you avoid a lawsuit. Further, selling a property implicates lots of paperwork. Having a broker explain the significance of each document is invaluable.
4) Selling a property creates an adversary relationship with prospective buyers. While there is no need to be nasty, it is axiomatic that the objectives of the Seller (get as much $ as possible) are naturally and necessarily adverse to the objectives of the Buyer (pay as little $ as possible). To achieve their objectives, Buyers usually "focus on" imperfections in the property to argue that a lower price should be acceptable. Sellers don't like hearing how their most valuable possession has "fleas" -- even when these statements are made in the course of price negotiations Having a real estate broker to "run interference" can remove some of the tension from this relationship.
5) Real estate agents achieve higher sales prices. The statistics don't lie. The average Realtor-assisted sales price is significantly higher than the average sale by owner. This difference usually more-than compensates the fees charged by the agent.
For all of these reasons, unless you want to enlist the services of a Texas real estate lawyer, a prudent Seller should engage a licensed and reputable real estate broker when it comes time to sell.
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