Real Estate Agents: Still Essential or Becoming Obsolete?
With recent changes in real estate commission rules, some individuals are opting to sell their homes without the help of a real estate agent. Gabrielle Hillman, a 30-year-old from Chicago, and her roommate recently sold their condo without the assistance of an agent. By doing so, they were able to save $30,000, which they found to be worth the extra time and effort involved in the process.
In the past, agent fees were typically around 5 to 6% of the sale price, coming out of the seller’s proceeds. However, recent changes in how commissions are advertised and paid have given sellers more flexibility to handle the sale independently. Hillman conducted research to determine the asking price for their condo, listed it on the MLS for a small fee, and hired a real estate attorney instead of an agent for the closing process.
While some have found success in selling their homes without an agent, most people still rely on real estate agents for their expertise. The National Association of Realtors (NAR) settlement has brought changes to how agent fees are negotiated and presented, giving consumers more power in the process. However, the decision to forgo an agent comes with risks, especially for those unfamiliar with the intricacies of real estate transactions.
Amanda Pendleton, Zillow’s home trends expert, believes that in the current market conditions, with high prices and low inventory, the expertise of real estate agents is more important than ever. Homes that are priced and marketed correctly tend to sell quickly, while those that are not linger on the market for months.
While some argue that real estate agents may not always be the best option, real estate attorney Doug Miller suggests that working with a lawyer who specializes in residential real estate could be a better alternative. Miller, who advocates for consumer education in the real estate industry, believes that attorneys are better equipped to handle conflicts of interest and provide quality service.
Marketing remains a significant challenge for those selling their homes without an agent. While platforms like Zillow offer some freedom for sellers to market their properties, FSBO listings may not receive as much traffic as MLS listings. Miller recommends utilizing companies to get listed on the MLS and emphasized the importance of high-quality photos in attracting potential buyers.
In conclusion, while some individuals have found success in selling their homes without a real estate agent, the expertise and guidance provided by agents are still valuable to many. With the changing landscape of real estate transactions, consumers have more options than ever before, but the decision to forgo an agent should be made carefully, considering the potential risks and challenges involved.
