About Answers! Yahoo! Answers

mindthetwine

Why hire a Realtor or real estate agent? What do you get in return for paying a $10,000+ commission?

asked by mindthetwine - 6 Answers

Assume that a home seller: 1) Knows the value of their home and the comps on the market, 2) Can list their home on the MLS for $400, 3) Can hire a real estate attorney to prepare the necessary paperwork and attend the closing for a flat fee of $500, and 4) Is available to show his/her home with reasonable notice. What would be the value of hiring a real estate agent? It seems that a cost of $900-1000 to market your home and hire representation is a tremendous savings over an agents commission of $6,000-12,000 (for a $200,000 home). What does a Realtor really do to justify a five-figure commission?

bigdonut72

Best Answer by bigdonut72

we bought and sold our house with the help of a lawyer. total fees were $800. realtors might help sell your house, but they do little more than advertise and hold an open house or two. They can connect with other agents, giving more advertising than you could, but I hardly believe they give 6-12 thousand. here are a couple of other reasons why not to go with a realtor. 1) realtors only get paid if the house sells. They are not as interested in getting the best price, only making sure it sells quick. 6% of the extra 20,000 you could get if you held out for the best price is minimal, compared to selling it quicker for $20000 less. So they have an incentive to sell quick instead of selling smart. 2) lawyers know the law better than realtors. the lawyer we used made sure that we were protected from every angle. All of our t's were crossed and i's dotted. They can do any of the paperwork the realtor can, better. 3) 6% is huge. 250k times 6% is $15,000. just for doing some paperwork and advertising? you could do the same for alot less. ... See all 6 answers

Ask a question and get answers from real Yahoo! users.

Find an Answer

Enter a keyword below to find questions and answers from real people

Related Yahoo! Services:
Jobs - Personal Financial Advice
Some Yahoo! Real Estate information is provided by our trusted partners.
However, Yahoo! does not guarantee the accuracy or completeness of any third party content.
Yahoo! does not evaluate or guarantee the accuracy of any Yahoo! Answers content and shall not be responsible
or liable for any investment or financial decisions based on such information. Click here for the Full Disclaimer.