Why use a Realtor when selling your home?

Realtors offer a seller’s property the largest possible level of exposure and marketing by using the MLS (the multiple listing service). What is the MLS? It’s nothing magical, it’s a simple database that lists all the homes available for sale in given areas of the state – sort of like ebay for houses. However, there is a catch; only Realtors have access to the MLS database. If you want to get your house in the MLS and reach thousands of potential serious buyers, you have to use a Realtor.

How do Realtors make their money?

Listing agents get a commission on what they sell. They usually receive 6% - 7% of the final sales price of the property. This commission is paid by the seller at closing out of the funds they receive from the sale.

Buyers agents are typically paid by the listing agent for bringing a purchaser to the table. Buyers agents typically receive 2.4% to 3% of the purchase price of the property from the listing agent at closing.

It’s a mutually beneficial arrangement – the listing agent puts the home in the MLS, and the buyers agent searches through the MLS on behalf of his clients, shows the homes to his clients, and guides them through the purchase process.

The commission that gets split between the listing agent and buyers agent comes from the seller at closing.

What about For Sale By Owner?

Attempting to sell a house on your own doesn’t give a property the exposure that the MLS does, but the savings can be significant. Many sellers are willing to advertise their property on their own, without the MLS, to save the 6% - 7% commission.

So what does My Dog Tess have to say about the traditional real estate industry?

Click here to find out.