We live in a world where everyone does everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in Utah?
Agents cost money. It’s that simple. In many home sales, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is $500,000, this can cost sellers $30,000. This amount is split between both the buyer’s and seller’s agent.
This is a lot of money that is taken from the final sale price. When a seller has high mortgage balance that needs to be paid off, getting rid of commission costs is a big advantage. Just increase net profits is attractive to sellers. One thing to remember, just because you’re not using a listing agent doesn’t mean that the buyer who will be buying your house doesn’t.
Most sellers end up paying between two to three percent to the buyer’s agent in self-represented sales. Remember, if you haven’t sold many homes or are new to the selling process, the buyer’s real estate agent might negotiate a higher percentage rate for their commission because he will most likely be doing work on both ends of the transaction to make up for your lack of experience and understanding.
Even though you can’t force the buyer to not have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Sometimes buyers feel they will be able to negotiate down on the price without an agent because they know the amount how much the seller is going to save when they sell.
Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Some sellers who have sold homes in the past may be comfortable going through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save at least three percent of the commissions by representing himself.
If the transaction is very straightforward. Maybe it’s new construction or the house is being sold “as is” and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers who know what to sale their home at and are able to provide disclosures and use the proper documents might not need an agent to represent them.
Keeping Things Personal
There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In these types of scenarios where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Remember, there will need to be trust among all everyone evolved in this type of transaction.
Even when everyone knows each other, legal sale requirements must be followed. Adhere to all Salt Lake City codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Make sure you follow the all rules so you can avoid legal ramifications and penalties.