Why You Should Use a Real Estate Agent to Sell Your Investment Home
With all the hard work, money and effort you put into finding, purchasing and rehabbing an investment home, you really need to make sure you can show your home to the widest audience possible and have a pro negotiate the best deal possible.
Many real estate investors think that they will make more money by not hiring a real estate agent, when in reality, in most cases, nothing could be further from the truth.
According to bankrate.com, the average home sold by the home owner, sold for 5% less than the original list price.
The average percentage that goes to a real estate agent around 6% with the listing and buyer’s agent splitting the fee in ½.
Now think about this, if the commission rate is 6% for both agents. You sell your home for 5% less than what you asked for.
Most of the time the buyers will bring an agent with them which you will be forced to pay a 3% commission to.
So now by not using a real estate agent to list your home, you are an extra 2% in the hole.
Here are a few more reasons you should consider hiring a listing agent for your home sale.
- Setting the right list price for your home. Most real estate investors do not have access to the local MLS service which will show in detail what comparable homes have sold for and list price for active homes.
- Effective home presentation. Many listing agents these days will make a short video tour of your home and list it on YouTube. This way potential home buyers can tour your home from the comfort of their home. This is an excellent presell technique.
- Get your home seen by more buyers. When an agent lists your home on the MLS, it is sure to get more eyeballs on it. Not only will it be seen by local buyers already looking for a home with a real estate agent, but most MLS services are tied to a few hundred real estate websites that will pick up your home and place it on their website.
- Negotiate with the buyers. You can almost always sell your home for more money, when a third party helps negotiate it. Because you own the home, you become emotionally attached a little. Much better to have an impartial third party look out for your best interests.
- Negotiate inspection results. Many savvy buyer agents will attack a list price when the home inspection comes back with some needed repairs. Much better again to have a neutral third party go to bat for you.
- Make sure the transaction keeps moving along towards the closing. It is well worth the commission price to have somebody else making the daily phone calls to keep all involved partied focused on getting the deal to close. You have better things to do like go find your next flip…
- Get you to the closing table. Like #6 above, the job of your agent is to get the home closed.
Well that about sums up the benefits if using a sharp real estate agent to list and sell your investment home.
Of course if you are in Arizona and need a private money loan for your next flip, please contact the “Two Mikes” at the LM2 Investment Group.
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