Much like the temperatures outside, the real estate market is heating up. That means potential homebuyers these days are flocking into neighborhoods to see properties listed for sale.
In fact, the market is going at such a hectic pace in some cities that many people are purchasing properties sight unseen, according to USA Today. In other areas around the nation, the frenzy means people are busy fixing up their homes, contracting repair jobs and even renovations so that they can rush to market.
One of the key questions to consider is whether you’re going to hire a real estate agent to sell your home or do it yourself. There are pros and cons each way.
Selling your home yourself: Do you need an ‘Agents Protected’ sign?
If you’re thinking about putting your home on the market as an FSBO (for sale by owner), there are some things to keep in mind – and the difference could mean thousands of dollars for their wallet.
If you’re serious about selling your home yourself and have done the math as well as considered the two “hidden costs” associated with it, here’s one key tip that can help you.
Money expert Clark Howard frequently suggests that for those selling their homes by themselves it may make sense to put an “Agents Protected” sign out in front of their yard.
But if you choose to do so, be forewarned, he says. “Typically if you do an FSBO, agents will do what’s called steering,” Clark says. That means if some homes are represented by agents and some aren’t, they will be less likely to steer home seekers toward those that aren’t repped.
“If they’re in the neighborhood with somebody looking for a home, they’ll start telling you why that house is bad,” he says.
That’s because a Realtor knows that an FSBO without an “Agents Protected” sign out front means they’re getting cut out of the deal, Clark says. “So the sign means there’s a buyer’s agent commission and it’s protected,” he says.
For many people, the added benefit of having agents helping to sell the home is worth it when they consder the prospects of having their property languish on the market for an extended period of time.
Clark says the agents’ commission is usually in the 2 to 3 percent range. The rationale is “if someone brings a buyer to me, I’m happy to have 97 cents on the dollar [out of the deal] rather than having to wait to sell it,” he says.
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