Is There a Broker inside You


The opposite of buying is selling, and if you've done the first, you'll eventually do the second. Often, selling and buying happen at the same time, when you leave the home you now own for one you just bought. Like a buyer, a home seller needs to research the asking and selling prices of comparable homes before setting a price. You can certainly ask brokers for their opinions, but, as Marc's dad used to say, "Free advice is generally worth what you pay for it."

A professional appraisal will cost a few hundred dollars, but may help you sell faster and at a higher price. Of course, sitting in a broker's office and looking through comp books is a no-cost way to be your own appraiser. Your home will not sell for substantially more or less than others that are very similar.

A three-bedroom home may be worth less than a four-bedroom home, and a large lot may be worth more than a small one. In comparing, take these variations into account. But try to be objective and to find houses that are really comparable. Neither the lovely chartreuse you've painted the living room nor the walk-in closet you're so proud of having built will raise your home's value. But an additional bathroom might.

Having answered the big question about your home's market value, it's time for the next question, "Do I sell it myself or do I list it with a broker?"

There are two main advantages to selling it yourself:

The commission you may save.

The fact that brokers have hundreds of homes to sell and you have only one, which means you may put a lot more effort into making the sale.

The main disadvantage to selling on your own is that you'll have taken on a very intensive project.

While brokers will happily tell you what the standard commission is in the area, like most other home buying and selling costs, commissions are negotiable. Assuming you were to pay a 6% commission on a house that sold for $150,000, that would be $9,000. (Note: You probably won't save the full commission, because informed buyers will want to at least split the savings with you. If they can't also benefit, they'll figure that they might as well buy the house down the street and get whatever assistance they can from the broker.)

Even if you just save half the commission, $4,500, how much of your effort is that worth? And how many times will you move during your life? At $4,500 a pop, those savings can really add up. You can plow them into the next house you buyand get a bigger house, more land, or a smaller mortgage. You could always use that money to pay off some more expensive debts, or you could sock it away in your college or retirement fund. Your choice. Any way, you win!

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This article was sent to us by: Tania Staar at 05152010

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