More and more people are relying on their own expertise and knowhow to solve problems are in some cases earn money.
People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors.
Homeowners Are Taking Selling Into Their Own Hands.
As independent as everyone is becoming, why wouldn’t homeowners also want to save money and consider selling their house without an agent in Florida?
Agents cost money. It’s that simple. To make matters worse it’s not a fixed amount. An agent’s commission fee adapts in relation to the sale value of your home.
In most cases, agencies will charge up to 6% of the final sale amount. This means if a property sells for $500,000, you could end up paying $30,000 in commission fees. This amount is then split between both the buyer and seller’s agent.
This is a considerable amount. If a seller still has significant mortgage balances that need to be paid off, eliminating commission fees is a major advantage.
Just remember that even if you decide to do things you own way and bypass the agent, this doesn’t mean the buyer has done the same.
Most sellers end up paying between 2-3% to the buyer’s agent in self-represented sales. However, if you’re an inexperienced seller, the buyer’s agent will probably try to negotiate a bigger commission. This is not necessarily to take advantage but due to the fact that the buyer’s agent will probably end up doing EXTRA work to make up for YOUR lack of experience and understanding.
In some instances, both sellers and buyers will feel they are better suited to negotiating than an agent.
Buyers might believe that they’ll be able to negotiate a better price without an agent because they know how much the seller will save. On the other hand, sellers well versed in real estate transactions, and investing might feel they are more qualified to sell and negotiate the transaction than an agent.
When a seller is confident and able to handle negotiations with a buyer or buyer’s agent, they can save at least 3% of the commissions by representing themselves.
There can even be times when the transaction is exceptionally straightforward. Perhaps, the property is a new construction or being sold in AS-IS condition 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 set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.
Keeping Things Personal
There are times when transactions occur among well-known parties. Well-known could be family members, close friends or even business partners.
In cases like this, where trust is explicit, there may not be a need to hire an agent.
However, don’t forget that even when parties in a sale know each other, there are still legal requirements that must be followed. Adhere to all Miami codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself stuck in a legal battle for a property you thought you successfully sold. To avoid legal ramifications and penalties, adhere to the rules at all times.