Why should you pay an agent a 6% commission when you can just sell your house yourself? That’s a valid question that a lot of people ask. Let’s see, then, why you need an agent to sell your Los Angeles house.
First of all, most agents are bound by the National Association of Realtors’ (NAR’s) code of ethics that requires agents to put clients’ interests above their own at all times. The NAR also holds real estate agents accountable with respect to disclosures and truth in advertising. So not only do you benefit from your agent’s knowledge, experience, and expertise, but you’ll also have the peace of mind that comes with knowing she has to follow a professional ethical code and that she really is a business partner looking out for your best interests.
Pricing Expertise and Wider Marketing Reach
One of the chief reasons you need an agent to sell your Los Angeles house is that pricing right is so critical. Agents know the market and where it’s trending, so they know the sweet spot for pricing. If you price too high, buyers won’t be inclined to view or even consider your house, and, as a result, it may languish on the market for a long time. But if you price too low, potential buyers may think something is wrong with your house and so, again, won’t look at it. Remember, a house gets the bulk of its traffic during the first week on the market, and you definitely want it correctly priced during that critical period.
Real estate agents also have a much wider marketing reach than you’d have on your own – a solid reason why you need an agent to sell your Los Angeles house. Consider that most of them have access to the nation-wide Multiple Listing Service (MLS), which allows them to take the pulse of the market, get listing details, and list your house. In addition, most agents today are conversant with all the online marketing venues, and they have a host beneficial industry connections and contacts.
If you intend to sell your home on your own through an FSBO deal, you’ll need to become familiar with your state’s laws concerning real estate transfers. Otherwise, you may inadvertently land in some legal hot water. It takes a lot of effort and involves some fairly opaque legal complexities.
Such laws, for example, govern the kinds of documents and contracts you’ll need and who has to sign them. Also, you need to know what to do if it turns out there are any encumbrances on your home. Further, you need to be up to speed on your state’s mandatory disclosure laws. A qualified agent, however, is knowledgeable about all these legal intricacies and can assume that burden and risk for you.
Better Sale Price
Statistics from the National Association of Realtors (NAR) unequivocally support the contention that you need an agent to sell your Los Angeles house. According to these NAR statistics, the typical “for sale by owner” home sold for around $185,000 in 2016. But in that same year, the typical home sold by a real estate agent fetched about $245,000. That means the house sold by an agent sold (on average) for $60,000 more than the FSBO home!
It should be fairly obvious, then, that you need an agent to sell your Los Angeles house if you want to price right, market-wide, avoid legal hassles, and make more money. And you can enjoy those benefits while knowing that your agent is bound by a code of ethics. It just makes sense!