You want to sell your house, so you do what anyone might do: work with a real estate agent. But here’s a little secret: most agents have a whopping zero transactions each year. Yes, zero. If you work with a licensed Realtor, you want to have the confidence that they can deliver on their services. But those statistics don’t inspire much confidence.
What are your other options? In fact, there are several other ways to sell your house that don’t require the services of an agent. If you’re looking to sell, you may want to familiarize yourself with these different approaches. At Sundae, we’re committed to helping sellers get the most out of selling their home and avoid paying high fees. Let’s take a closer look at the issues and how we can help.
A look at the numbers
There’s no shortage of real estate agents to work with. In fact, there are 2 million licensed Realtors out there and in 2017, 5.51M existing homes were sold according to the National Association of Realtors. As noted above, by and large, many have no transactions to show. And the ones that do? They’re making good money, typically at the seller’s expense.
Consider this: the typical commission on a home sale is six percent. Three percent of that goes to the seller’s agent (or listing agent) and the other three percent goes to the buyer’s agent. And who typically pays these fees? The seller.
So for a $300,000 home sale, $18,000 is for paying fees to realtors. That’s a significant chunk of change.
Why working with an agent carries risks
You might be thinking that $18,000 is there to pay for someone to help you, guide you along the process, and be your advocate. Let’s face it, selling a home is no easy task and you want the assurance of a professional to assist you. We get it.
Unfortunately, sometimes the agent’s goals are not in line with yours. At the end of the day, they want a sale. That’s their business. But in some cases, getting a transaction done can get in the way of making sure you get the best deal.
Let’s start with the sales price. When looking for a Realtor, do you want to work with someone who will give you an honest price or someone who tells you that you can score a high price on your home? If you go for the high price, you’re likely the one to be bearing the costs such as property tax, HOA, and more.
Agents want to make a sale so they can move on to the next deal. Lowering prices can help that process move forward but has a negative impact on the seller. Let’s take a look at two examples.
$300,000 sale. Agents receive $18,000. The seller receives $282,000.
$275,000 sale. Agents receive $16,500. The seller receives $258,000.
Even though there’s a $25,000 difference in sale price, the difference for the realtor is only $1,500. For the seller? Twenty four thousand dollars. Lowering the price can expedite the selling process and it matters very little to the agent because it has a fairly low impact on them.
But as you can see, there’s a huge cost for sellers. On top of that, there are additional costs that sellers have to deal with. To get your home ready for a sale, you typically have to invest in some improvements. Think new paint, new carpets, and staging. All of that could run you up to $3,000 to $9,000. Not exactly a small amount of money, especially if you need to sell your home.
In all of these ways, the seller gets the short of the end of the stick and does the majority of the work. So it’s critical that you think through the possible cost implications before choosing an agent.
Working with Sundae
If your house is in need of serious work, there are investors out there who will buy your home as-is and later resell it at a profit. Beware, as many of these investors can take advantage of you.
Instead of working with a real estate agent or being an investor’s prey, you can work with Sundae. We’re here to address the disparities in real estate and help make it more advantageous and profitable for the seller.
Our mission is to put as much money back into the pockets of the seller as possible. We can accomplish this as we don’t take a realtor fee and operate at a large scale. We are committed to working with sellers and improving the process so they can get the most out of selling their home and get the money they deserve.
On top of that, we provide seller-friendly options like a $10,000 cash advance to help with your expenses. We will work with you if you need a little more time in your home.
Whatever your plans may be, Sundae is here to be a resource for sellers. We’re advocates and champions of home sellers and want to provide the information you need to get the most out of selling your home.
Need some help? We can provide a free home assessment. Get in touch with us.
Composed by a team of experienced content, marketing, and real estate professionals, the Sundae Blog is a go-to authority for tips, instructions, and data-driven insights aimed at helping homeowners maintain, renovate, sell, and buy homes, while navigating a complex real estate market.