Sally Redux

That's a big cost to the seller, though.

Kaffy Mintcake

Yes, but in theory you should get a better offer with a realtor than you would going on your own. With the realtor comes the marketing of your home. They can help you position your home for the best price.

I'm just saying, I know people who have tried to sell their home on their own only to have it sit on the market for months (no publicity or know-how). In that case you definitely would be better off paying the commission.

On the flipside, I have a coworker who stuck a 'for sale by owner' sign in his yard only to be promptly stopped by someone driving by. He sold his home within minutes. That I suspect was rare.

Sally Redux

I think it seems a lot to Brits because we pay around 1% to sell and don't have to pay for the buyer's agent.

Kaffy Mintcake

Out of curiosity, how do estate agents make a living at that? Do they do okay because the homes are generally more expensive? Are the services the same?

Unfortunately even the bare bones agents here make about 3%.

Sally Redux

They don't handle the conveyancing so you need a solicitor (attorney) for that part. They usually get you to do your own showings, not all bad I think because the ones I've seen here are just obviously out for themselves when they show a property.

meauxna

Exactly.
I sold my flip in a matter of minutes, myself. But then, I'm in sales for a living.

My neighbor is driving me crazy with his for sale by owner scheme. He has lost the sale I can't even tell you how many times and the place has been on the market the better part of a year now.. we're in one of the hottest neighborhoods in town with an average 40 days on the market.
He's a moron and he's doin' it all wrong.
(and then bragging to me every week about how cheap his FSBO listing on the interwebs is, sigh)

He'd have made more money paying a commission months ago. Now he's been bleeding on this place AND he's going to have to take less. And spend more fixing it up.
omg, they could actually be living there *forever* at this rate!
I see big bamboo in my future...

meauxna

And how much does that cost?

AS before, generally if you've used a Realtor, you dont' need a RE attorney.

Kaffy Mintcake

So at least part of the difference in cost comes from reduced service. Having to do your own showings ... hmmm ... I've never felt comfortable looking at homes when the owners are there. I did that a couple of times when we looked at homes that were for sale by owner and it was really weird.

I do think it's very important to get the right agent to make sure you're getting your money's worth. A friend of mine had a really bad experience recently because her realtor didn't formally adjust a contract and the seller turned out to be a lawyer who took advantage of the situation. Bad all around.

Sally Redux

The difference is obviously greater if you're buying in an expensive area here - I can't remember exactly but I think I paid less than £1,000 for the solicitor in my British sale.

meauxna

Plus how much to the agent?

I wonder if when you add it up and convert the currency...

Jerseygirl

18ths ago I think I paid less than that...although there was no mortgage involved.

Sally Redux

I know what you're saying but then again some of the realtors around here are just plain weird and extremely off-putting, I just wonder if the sellers realize they're paying for someone to insult the house to buyers, immediately say it's overpriced by $100,000 and/or spend the whole viewing on the phone discussing other matters.

Kaffy Mintcake

1% Sally said.

Jerseygirl

When buying you don't pay anything to the agent...in the UK only the seller pays the estate agent/realtor.

Kaffy Mintcake

That is weird. Definitely important to do your homework and to get a good one.