The Biggest Cost When Selling Your Home
What’s the biggest cost when selling your home?
The real estate commission paid to your agent’s brokerage is your largest expense. There are various service and commission options based on different marketing skills and inclusions, agent experience and track record, etc. Rates range from 1 percent to 6 percent to list a property in Ontario.
The least expensive option is to try to sell it yourself.
This is often much more difficult and costly than it looks. You will need to know your home’s value, how it stacks up against the competition in value and utility, have great marketing methods, excellent negotiation skills and a thorough understanding of legal contracts. Finally, you must have a lot of time to devote to successfully selling your home. Remember that even the founder of for sale byowner.com used a professional agent to sell his New York condo after he had it on the market for over six months.
A step up from For Sale By Owner – the Discount Brokerage
A step up from selling it yourself would be to use a discount brokerage that charges less commission on the listing portion. These brokerages don’t include many services and offer more of a bare-bones marketing approach. Some discount brokerages will simply place your listing on Realtor.ca, and then it is up to you to field all inquiries and show the house.
A Full-Service Brokerage
This may cost more money when you close your sale, but using the skills of a full-service brokerage ensures you have the highest level of service and the widest “reach.” A professional, experienced realtor doesn’t leave any money “on the table.” Your home will sell for the most money in the least amount of time. Full-service agents and brokerages often provide professional photography, aerial photography, walk-through 360-degree virtual tours, interactive floor plans, and staging services. Often, a real estate team member is physically on-site for showings to field questions from buyers or agents from other brokerages. The focus is on showing the property at its best to get the seller the highest price.
The saying ‘you get what you pay for ‘ is true when shopping for real estate brokerages when selling your home.