When one decides to offer his home for sale, he has the choice of
either listing it with a real estate broker, or doing it himself. When
one handles the transaction himself, it is known in the industry as For
Sale By Owner (or FSBO), and the homeowner thus decides to handle all
advertising, promotion, showing, listing and paperwork involved in the
process. On the other hand, one can choose to use the services of a real
estate broker.
When seller decides to use a broker, he has the option of giving an Exclusive Listing or a Multiple Listing. An exclusive listing means that the house will only be shown by the brokerage house that "signs" up the homeowner (thus exclusive). A multiple listing is when it is publicized via the Multiple Listing Service, and thus all Realtors in that state will have access to the listing. Obviously, statistically, homes that are on multiple listing sites will be seen by more potential buyers. I have seen many agents and/ or brokers that attempt to convince a homeowner that giving an exclusive listing will provide more incentive for that broker's agents, and while that might be true, I do not believe that in any way compensates for the reduced number of potential "views." Each homeowner must decide what is better for his situation.
The main reason usually given by homeowners as to why they decide to try to sell their home without using the services of a real estate professional, is to save on the commission. While it is true that a seller does pay a broker a commission, the homeowner should realize that the broker will be providing services such as advertising and promoting the home, exposing it to far more potential buyers through the real estate professional's network, vast exposure via the Multiple Listing Service, as well as other Realtor sites such as http://www.Realtor.com, etc., experience and expertise, screening potential buyers, pre - qualifying potential buyers, etc. In addition, statistics have consistently indicated that houses sold through a broker consistently fetch higher prices on average than those that don't, and thus the net amount of the proceeds will generally more than compensated for any fees or commissions paid.
However, a homeowner must feel comfortable with his broker and agent's abilities including especially marketing and negotiation, as well as advice. Anyone selling their home must be convinced that the professional they "hire" will have their best interests in mind, that the personalities and objectives are compatible, and that there is a comfort level.
Of course, since I am a Licensed Real Estate Agent in New York State, I may have a somewhat biased perspective on this matter, but I earnestly feel, that if a homeowner selects the right broker and agent for them, that it is certainly in their best interest to use the services of a professional. Statistically, even most people who begin trying to sell their homes themselves eventually turn the procedure over to a professional. Just as there is an adage that one should not represent himself in court, it often takes an objective professional, who has the right type of experience and expertise, to best represent anyone interested sincerely in selling their house.
When seller decides to use a broker, he has the option of giving an Exclusive Listing or a Multiple Listing. An exclusive listing means that the house will only be shown by the brokerage house that "signs" up the homeowner (thus exclusive). A multiple listing is when it is publicized via the Multiple Listing Service, and thus all Realtors in that state will have access to the listing. Obviously, statistically, homes that are on multiple listing sites will be seen by more potential buyers. I have seen many agents and/ or brokers that attempt to convince a homeowner that giving an exclusive listing will provide more incentive for that broker's agents, and while that might be true, I do not believe that in any way compensates for the reduced number of potential "views." Each homeowner must decide what is better for his situation.
The main reason usually given by homeowners as to why they decide to try to sell their home without using the services of a real estate professional, is to save on the commission. While it is true that a seller does pay a broker a commission, the homeowner should realize that the broker will be providing services such as advertising and promoting the home, exposing it to far more potential buyers through the real estate professional's network, vast exposure via the Multiple Listing Service, as well as other Realtor sites such as http://www.Realtor.com, etc., experience and expertise, screening potential buyers, pre - qualifying potential buyers, etc. In addition, statistics have consistently indicated that houses sold through a broker consistently fetch higher prices on average than those that don't, and thus the net amount of the proceeds will generally more than compensated for any fees or commissions paid.
However, a homeowner must feel comfortable with his broker and agent's abilities including especially marketing and negotiation, as well as advice. Anyone selling their home must be convinced that the professional they "hire" will have their best interests in mind, that the personalities and objectives are compatible, and that there is a comfort level.
Of course, since I am a Licensed Real Estate Agent in New York State, I may have a somewhat biased perspective on this matter, but I earnestly feel, that if a homeowner selects the right broker and agent for them, that it is certainly in their best interest to use the services of a professional. Statistically, even most people who begin trying to sell their homes themselves eventually turn the procedure over to a professional. Just as there is an adage that one should not represent himself in court, it often takes an objective professional, who has the right type of experience and expertise, to best represent anyone interested sincerely in selling their house.
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