Home  contact  site map Moneyallocator.com - home Try our free web based
money management software
  | sign up | feedback |  
 » Everyday Savings
 » HOT TOPICS
 » Jobs and Economy
 » Mortgage
 » Insurance
 » Auto
 » Loans
 » Real Estate
 » Calculators
 
 



 
FAST FACT

In 1750 there were about 800 million people in the world. In 1850 there were a billion more, and by 1950, another billion. Then it took just 50 years to double to 6 billion.

SELLING YOUR HOME USING A REALTOR

by Dr. Sharon L. Bender
7/17/2006

When it’s time to put the house on the market, many people wonder if they are better off selling as a “by owner” or using the services of a realtor. The reason for the quandary is typically a financial one. It is a common myth, actually, that the seller will net greater proceeds from the sale if they sell it themselves. In reality, buyers are typically looking for the “by owner” to drop the price of the realtor’s commission as much as a whopping 6-10% below the price of comparable homes listed by real estate firms. Otherwise, they can find more selection of homes and a more trusted sale if they use the services of the realtor.

A “realtor” is a designation for an agent who lists and sells real estate for a broker who is a member of the National Association of Realtors. A broker is the individual licensed by the respective state to deal in real estate transactions. There are even “buyer brokers” that work exclusively for the benefit of the buyer. This means the realtor at these brokerages may try to get the seller to lower the price to accommodate the interests of the buyer. The opposite is more common, however. The realtor typically works for the seller, seeking to get the best price for the property.

How does a Realtor affect the bottom line?

Likely you just want to know in which case you will enjoy the greatest bottom line from the sale so you can afford that next bigger or better home or perhaps for retirement. The proceeds from the sale are often more important to the seller than getting a great deal is to the buyer. The reason is purely in the numbers. If the buyer can secure a reasonable loan, at a reasonable rate that meets the buyer’s monthly budget, then the sale is possible, regardless of the asking price. If the seller is willing to “hold paper,” meaning become the mortgage lender in place of the bank, then the seller and buyer can agree on an amicable interest rate. This may mean a higher sales price for the seller and a lower monthly payment for the buyer. But carrying the loan for the buyer does not come without risks. For instance, your own credit rating can suffer if you are relying upon the monthly payment to meet your own obligations, but the buyer has defaulted on your loan agreement. And the buyer can hold possession of the property for several months beyond the default of the contract.

The good news is, with the high cost of homes, real estate commissions have dropped from the traditional 5% to around 2% of the sales price, making the use of a realtor affordable regardless of the pricing market. The commission is the negotiable percentage of the proceeds resulting from the sale of the property. Realtors provide quite a bit of service for that fee, which by the way is often split four ways. There may be a listing broker involved, the firm that takes the contract to market the property, and a selling broker, the firm that produces the buyer and draws up the contract of sale. In each firm there is the broker and a realtor. Two brokers and two realtors are four entities that will split the commission. You may only see the selling realtor walk away from the closing with the commission check, but it will be immediately handed over to the broker who will in turn send a check to the other broker to be split with the other realtor.

What does the realtor do?

Realtors often strive to be both the listing agent and the selling agent in order to enjoy half of the commission rather than a quarter of it. An agent is another term for the realtor who is an agent for the broker. This “double bubble” sale is a rare occurrence. It is not often that the realtor who takes the listing winds up also be the realtor who produces the buyer. The chances are there will be a listing firm and a selling firm. One will take your contract for sale and enter it into the MLS (multiple listing service) so that all other realtors in your selling region will have access to it, and beyond. Listings are now available via the Internet. The seller can put the home on the Internet, but buyers will be looking for real estate offices rather than your site. The enormous exposure of the real estate organizations means more people will become familiar with your home. The bigger the pool of buyers the greater the competition will be for your home. This usually equates to the best price. Can you get this kind of exposure for your home as a “by owner?”

Something more to consider that could affect you financially is that there has been an alarming increase in legal claims made by buyers against sellers. If the seller does not fully disclose any and all defects, those discovered after the sale by the buyer can add up to some heavy damages. Take for instance, the failure to disclose a toxic black mold condition (Stachybotrys atra) that you discovered in the walls in your basement and “innocently” sealed away with a new panel of sheetrock and a fresh coat of paint. An experienced realtor can help the seller to minimize such risks. Many are well educated, holding degrees like GRI (Graduate Realtor Institute). The best policy, however, is honesty with your realtor.

Many real estate firms provide a homeowner’s warranty package that not only safeguards the seller against risky lawsuits, but it can add value to the home in the eyes of the buyer. That can mean thousands more dollars are possible in your asking price. Or at least your home may sell faster than the one across the street that is identical, but lacking the same protection. A homeowner’s warranty package is a form of insurance policy that covers certain repairs to major appliances and some systems in the home for a specific time period. A realtor may also order a home inspection that will further uncover any defects. Even the nifty listing and sales contracts used by the real estate firms today are filled with protective language. You could sell your home yourself and hope that your lawyer will have access to these kinds of agreements. In some states no attorney is used for the closing. Then you may be at the mercy of the title company.

What is my investment in the sale?

Selling the home “by owner” can also take a lot of your personal time. Imagine the phone ringing at your home instead of at the realtor’s office. You are responsible to do the screening. You can be doing something else more productive than answering the phone and being on hand to show the home at the convenience of the buyer. Expect that a lot of your time will also be spent talking to realtors who are interested in coming over to give you a free market analysis. Sometimes your “for sale” ad or sign is nothing more than an open invitation for realtors to call and pitch their services. In truth, that can be handy in getting to know the services they offer and finding one or two to invite over for a presentation. The market analysis is handy because it will help you to understand how to correctly price your home. With a realtor, you can save the money you would have to fork over for the production of your “for sale by owner” sign. Surely you would not want to present your home with an unattractive message.

Consider that as the one handling the sale you will have to screen the buyers that call you, asking them very personal questions that they may not want to answer with you; and you may not feel comfortable asking either. There is a good chance you may not find out that the buyer is actually not qualified to buy your home until it is too late, and you have wasted precious time off the market. Other possible buyers for your home will have moved on. If you take on a buyer who is not qualified, it could also mean many dollars spent each time you need to use the services of your attorney to find out the hard way that you were dealing with a buyer who was not able to consummate the purchase. The realtor’s job is to bring you only pre-qualified buyers.

Why is it better to use a realtor?

Reason #1 For Using a Realtor:
A Realtor has a larger volume of potential buyers.

Reason #2 For Using a Realtor:
A realtor can protect you from the risk of lawsuits.

Reason #3 For Using a Realtor:
A realtor will save your investment of time.

Reason #4 For Using a Realtor:
A realtor will help you to price the home correctly.

Reason #5 For Using a Realtor:
A realtor can screen the buyer for qualifications.

Reasons to sell the home as a “by owner” are really not worth listing here as they would have more to do with personal reasons than those that are financial. Financially speaking, there are far greater reasons why realtors coast to coast are part of a thriving field. Your only decision might be to select which type of firm to use. There are those that advertise a savings in commission, but talk to realtors from all types of firms to get a clear understanding about the pros and cons of each.

Considering to sell your home as a “by owner” or whether to use the services of a realtor is an easy choice if you are considering dollars and cents, which is the typical concern of the seller. Some times it is to hand-pick the buyer, but in reality that may constitute discrimination, landing you in an attorney’s office for a different reason. This is yet another risk owned by the seller when acting alone, and once again affecting the financial outcome.

More articles by this author More articles by this author
print     send to friend   Digg it! Digg It    Stumble it! Stumble it   Bookmark it on Delicious Del.icio.us   
Comments: 13
LOAN wrote:
DO YOU NEED A LOAN TO PAY BILL?
DO YOU NEED FINANCIAL ASSISTANCE?
OUR. VISION IS TO MEET YOUR FINANCIAL
PROBLEM BY OFFERING YOU LOAN
LOAN OFFER
Please visit our list of products and services available bellow and
feel free to contact us, should you have any questions or concerns or
should you wish to place your order online or via phone. Our team is
available 24 hours a day, 7 days a week.
Here at C-W INVESTMENT LOAN SERVICE we can offer you complete
solutions to better the performance and success of your business eg
School loan:
Construction loan:
consumers:
Home loan:
Dept loan:
Others:
C-W INVESTMENT LOAN SERVICE
Over 25 years of experience
FILL IN this form
NAME ..........PHONE NUMBER.............
COUNTRY .......AGE......PURPOSE OF LOAN....
amount requires.........monthly income........
DURATION OF LOAN.................
Email contact: cwinvestmentloanfirm@gmail.com
Over and over again, your success is our success
LOAN wrote:
DO YOU NEED A LOAN TO PAY BILL?
DO YOU NEED FINANCIAL ASSISTANCE?
OUR. VISION IS TO MEET YOUR FINANCIAL
PROBLEM BY OFFERING YOU LOAN
LOAN OFFER
Please visit our list of products and services available bellow and
feel free to contact us, should you have any questions or concerns or
should you wish to place your order online or via phone. Our team is
available 24 hours a day, 7 days a week.
Here at C-W INVESTMENT LOAN SERVICE we can offer you complete
solutions to better the performance and success of your business eg
School loan:
Construction loan:
consumers:
Home loan:
Dept loan:
Others:
C-W INVESTMENT LOAN SERVICE
Over 25 years of experience
FILL IN this form
NAME ..........PHONE NUMBER.............
COUNTRY .......AGE......PURPOSE OF LOAN....
amount requires.........monthly income........
DURATION OF LOAN.................
Email contact: cwinvestmentloanfirm@gmail.com
Over and over again, your success is our success
LOAN wrote:
DO YOU NEED A LOAN TO PAY BILL?
DO YOU NEED FINANCIAL ASSISTANCE?
OUR. VISION IS TO MEET YOUR FINANCIAL
PROBLEM BY OFFERING YOU LOAN
LOAN OFFER
Please visit our list of products and services available bellow and
feel free to contact us, should you have any questions or concerns or
should you wish to place your order online or via phone. Our team is
available 24 hours a day, 7 days a week.
Here at C-W INVESTMENT LOAN SERVICE we can offer you complete
solutions to better the performance and success of your business eg
School loan:
Construction loan:
consumers:
Home loan:
Dept loan:
Others:
C-W INVESTMENT LOAN SERVICE
Over 25 years of experience
FILL IN this form
NAME ..........PHONE NUMBER.............
COUNTRY .......AGE......PURPOSE OF LOAN....
amount requires.........monthly income........
DURATION OF LOAN.................
Email contact: cwinvestmentloanfirm@gmail.com
Over and over again, your success is our success
LOAN wrote:
DO YOU NEED A LOAN TO PAY BILL?
DO YOU NEED FINANCIAL ASSISTANCE?
OUR. VISION IS TO MEET YOUR FINANCIAL
PROBLEM BY OFFERING YOU LOAN
LOAN OFFER
Please visit our list of products and services available bellow and
feel free to contact us, should you have any questions or concerns or
should you wish to place your order online or via phone. Our team is
available 24 hours a day, 7 days a week.
Here at C-W INVESTMENT LOAN SERVICE we can offer you complete
solutions to better the performance and success of your business eg
School loan:
Construction loan:
consumers:
Home loan:
Dept loan:
Others:
C-W INVESTMENT LOAN SERVICE
Over 25 years of experience
FILL IN this form
NAME ..........PHONE NUMBER.............
COUNTRY .......AGE......PURPOSE OF LOAN....
amount requires.........monthly income........
DURATION OF LOAN.................
Email contact: cwinvestmentloanfirm@gmail.com
Over and over again, your success is our success
LOAN wrote:
DO YOU NEED A LOAN TO PAY BILL?
DO YOU NEED FINANCIAL ASSISTANCE?
OUR. VISION IS TO MEET YOUR FINANCIAL
PROBLEM BY OFFERING YOU LOAN
LOAN OFFER
Please visit our list of products and services available bellow and
feel free to contact us, should you have any questions or concerns or
should you wish to place your order online or via phone. Our team is
available 24 hours a day, 7 days a week.
Here at C-W INVESTMENT LOAN SERVICE we can offer you complete
solutions to better the performance and success of your business eg
School loan:
Construction loan:
consumers:
Home loan:
Dept loan:
Others:
C-W INVESTMENT LOAN SERVICE
Over 25 years of experience
FILL IN this form
NAME ..........PHONE NUMBER.............
COUNTRY .......AGE......PURPOSE OF LOAN....
amount requires.........monthly income........
DURATION OF LOAN.................
Email contact: cwinvestmentloanfirm@gmail.com
Over and over again, your success is our success
Maleekfinancials wrote:
Hello,

Do you need a Loan at a low interest rate? Do you have Bad or No Credit? Do you need money to start up a business? Do you need a Car Loan? You want to re-mortgage your house? Are you in need of a Large Capital to start up a Large Scale Company? You have a right solution to all these! For more Info on Loan and Loan terms, please send an Email. All Inquiries should be directed in the form of a formal e-mail with the contact Information found below: Email via: maleekfinancials@outlook.com
LOAN APPLICATION FORM NEEDED.

So, fill the loan application form below.
LOAN APPLICATION FORM NEEDED.

1). Full Names:
2). Country:
3). State:
4). City:
5). Address of Applicant:
6). Telephone:
7). Gender:
8). Marital Status:
9). Occupation:
10). Monthly Income:
11). Loan Amount:
12). Loan Duration:
13). Purpose Of Loan:

Regards,
Maleek.
Maleekfinancials wrote:
Hello,

Do you need a Loan at a low interest rate? Do you have Bad or No Credit? Do you need money to start up a business? Do you need a Car Loan? You want to re-mortgage your house? Are you in need of a Large Capital to start up a Large Scale Company? You have a right solution to all these! For more Info on Loan and Loan terms, please send an Email. All Inquiries should be directed in the form of a formal e-mail with the contact Information found below: Email via: maleekfinancials@outlook.com
LOAN APPLICATION FORM NEEDED.

So, fill the loan application form below.
LOAN APPLICATION FORM NEEDED.

1). Full Names:
2). Country:
3). State:
4). City:
5). Address of Applicant:
6). Telephone:
7). Gender:
8). Marital Status:
9). Occupation:
10). Monthly Income:
11). Loan Amount:
12). Loan Duration:
13). Purpose Of Loan:

Regards,
Maleek.
jurong wrote:
Good Day !!

I am Hwa Jurong, a Reputable, Legitimate & an accredited money
Lender. I want to use this medium to inform you that i render reliable beneficiary
assistance as I'll be glad to offer you a loan at 2% interest rate to
reliable individuals.

Services Rendered include:

*Home Improvement
*Inventor Loans
*Car Loans
*Debt Consolidation Loan
*Line of Credit
*Second Loan
*Business Loans
*Personal Loans
*International Loans.

Please write back if interested.
Upon Response, you'll be mailed a Loan application form to fill. (No social
security and no credit check, 100% Guaranteed!) I Look forward permitting me to
be of service to you. You can contact me via e-mail: hwa_jurong@yahoo.com.sg or hwajurong12@gmail.com
Yours Sincerely,

Hwa Jurong(MD).
julian101 wrote:
Am here to refer you to a lender where i got my loan online. If you are searching for a genuine lender online to borrow money from, i will advise you contact his company. I got a loan from his company and i also introduce some friends to his company who also got their loan. His services is 100% guarantee and risk free. Contact email: floydservices01@hotmail.com

Company name: Floyd financial company

Contact Person: Mr. Floyd Hodgins

Thanks, Mr. Julian
My email: julinallen98@gmail.com

FLOYD IS A GENUINE LENDER. I GOT A LOAN FROM HIM
dr Charles Morgan wrote:
Do you need a loan? Are you in any financial crisis or do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutes? Here is your chance to obtain a loan from our company. we offer loans to individuals for the following purposes and more. Personal Loan, Business Expansion, Business Start-up, Education, Debt Consolidation, Hard Money Loans. We offer loan at low interest rate of 3%. Contact us today, via email with your phone number.
pas wrote:
Good Day!!

How are you doing? this post is to inform you of our loan offer, we are a guaranteed, trusted and government approved loan firm, we offer fast and easy loan to applicant in need of loan, we offer any kind of loan, student loan, home loan, business loan, investment loan, company loan and individual loan, e.t.c. its very easy to apply and its stress free, we offer loan ranging from $1,000.00 to $1,000,000.00 with a very low loan percent interest rate, with a quick internet transaction and bank wiring transfer. apply today and get your loan, you will be glad you did.

CONTACT US VIA EMAIL: globafinancing2010@hotmail.com



Note: this offer is for serious minded applicant only.



THANKS


Reply-to: globafinancing2010@hotmail.com
Carvajal wrote:

Good day!!!
Do you need loan ?
Am just smiling as am posting this because Mrs Rebecca Financial Company has made me and my family out of debts. It all started when i needed a loan of $50000usd to clear all my debt, so came across his email contact (am.finacial@blumail.org) on the internet so I decided to apply for the loan from him and right now am very happy and great full for the help of Mrs Rebeca for giving me my loan,you can contact Mrs Rebecca now via email to get yours okay Email (am.finacial@blumail.org) contact us for Mrs rebecca information (am.finacial@blumail.org)
john davidson wrote:
We offer private, commercial and personal loan amounts ranging from $5000 to 50 million with 3% interest rates for a period of 1 to 50 years. Interested persons should please contact the lender via email: johndavidsonloanss@gmail.com.
You must register to be able to post your comments.

 
RELATED ARTICLES

RENT OR BUY: PROS AND CONS

Do you know what to consider when deciding on whether to buy a home or rent? Do you know financial obligations and other responsibilities involved in buying and renting? This article will explain the pros and cons of buying a home vs. renting.

How to prepare your home for selling

Knowing the basics of good home selling will ensure that your home gets sold quickly and for the best price possible. This article provides you with basic tips for home selling that will allow you to have a pleasant home selling experience.


terms of service | about us | product | contact us

Copyright © 2005-2015, MoneyAllocator.com
All rights reserved