[allybunnie]

My Mom is considering selling her home in a super desirable location in the suburbs northwest of Hartford, where inventory sells immediately & usually ends on bidding wars on properties. Yes, her house is really nice & is in great shape with lots of desirable updates...

The question she is asking me is what's the advantage to using a real estate agent vs selling it by owner in such a hot market that properties are moving so quickly? Obviously there is that real estate commission that would come into play using an agent.

I have no expertise in this, but in this sellers real estate market, I understand why she is asking this question!! Any thoughts etc...are welcome Thanks!!

[mdovell]

I just closed on mine yesterday. My agent was great because there was some back and forth with the seller for a bit.

I'd hate to put it bluntly but sometimes people miss things. Let me tell you a story. When I was a kid I used to play around in the woods at a small brook/stream near the house. There was a plant we called hollow sticks that looked kinda like bamboo. It was fun to break it open because sometimes I would find ice inside. Well it turns out that was actually Japanese Knotweed, it's one of the most evasive species in the plant. https://en.wikipedia.org/wiki/Reynoutria_japonica

My point being is that what you think might not be what it really is. Both sides of my family had to sell off grandmas home largely because the upkeep and taxes would have added up.

I know plenty of people that cannot sell themselves. With a house you have to think of presenting all the options but also tell it like it is. Can you rent out the house? How much is ADA compliant? How much is it in terms of a "smart home" (insurance companies are looking for this). What's near it? What's not near it? How many apps service it? where I just bought they have Instacart in my neighborhood but not the whole town (there's more people there).

If someone asks you a technical question about the plumbing, electric etc how much in records do you have? when was the roof last replaced, do you get flooding, do you get power outages (solar and a backup generator might help). There's a property by my folks that dropped from 750K to 580K. the house itself is fine but they've been debating a new community center for years. It will cost 1 million for the demo alone and take months. That noise hasn't been heard in generations. Then making the new one. they also changed a traffic design to have an island in front of the house and planted three trees. these are going to block the sunlight and make it a harder sell.

[Rickcin]

Unless you’ve had past experiences selling yourself, I would highly recommend that you use an agent, a seasoned professional who will know how to maximize the price while ensuring it’s a problem free quick sale.

Trying to save some money could end up costing you double of what you would have paid to the agent!

[JayCT]

The real question you should be asking yourself is if you don’t have an agent who will be doing all the things an agent does when you sell a house. That includes providing information on recent home sales in the area (this is VERY important in hot markets where prices are rising rapidly), making suggestions for changes and/or staging, advertising the home, showing the home, receiving offers and offering opinions on them, setting up escrow accounts and making sure all the paperwork for the sale is in order. It’s a lot more work than people think.

Does your mother or you or another member of your family able to do this? Are they able to be there 24/7 since the more people that see the home, the better. That includes having to drop everything to show the house.

Also keep in mind that real estate agents have the clients that are actively looking for homes and have been prequalified to buy in your price range. Studies have shown that home sales handled by agents get a higher price per square foot than homes sold by the owner, however I do take that with a grain of salt since those studies were made by real estate agents. Still there is some proof that this is true.

I have sold properties both with and without an agent. The sales without an agent were to family so they were simple. The others were more complex so an agent helped make things go smoothly. If I were to sell my current house I would definitely use an agent. Good luck. Jay

[allybunnie]

Great responses & all of these are along the lines of my thoughts on the subject - I'm not up for any or all of these tasks, & she would not be able to do it solo for sure. Thanks for the words of wisdom for me to pass on to her. You all worded it much better than I ever could!!!

[SteveM85]

Is the market really hot up there? Are other homes in the immediate neighborhhod sold out?
Down here in Stub.CT folks are still getting offers the first few hours after go live.
Northwest of Hartford I assume is generally in the 300Ks. Am I right? Anyone can do a quick comp online. That's 10 minutes of work, tops. Lets say its 350K, that's 18K in realtor commission at 5%. A pretty hefty sum for a few hours worth of work if you ask me. Homes are selling themselves now. Alls you need to do is field a few calls and be home for showings which will probably only be a few the first day that will result in quick offers. Any other work is on the buyer's end.

If the neighborhhood currently has homes not selling, or its just a slow or mormal market, then Agent all the way, no two ifs about it.

Best

[WestRiverTraveler]

You could split the difference. I used Redfin both to sell my Boston house and buy my Madison house. It was a great experience. Selling with Redfin cut my commission down to 3.5% total, then purchasing with Redfin cut my cost down another .5% (plus the small Redfin rebate.) As a buyer, there isn't much advantage, but as a seller, it was great. They did a better job on my sale than the conventional agent did on my last sale - better marketing material, virtual tour, more open houses.

[Stepfordct]

You can try to do it yourself if you feel up to it. Like Steve said if in a hot market it makes the most sense to go without an agent.
One note though. Some will see you as trying to capture the commission you would have paid and discount it on their end. Negating any savings on your end.

[davwve]

[quote=SteveM85;60138210]Is the market really hot up there? quote]

Yes, there are hot areas north of Hartford. My brother listed his house last week and within 24 hrs had 10 showings scheduled and received an above asking price offer the next day.


A friend just listed hers yesterday and has about a dozen showings scheduled already (prior to even pictures being published). Expectation is at least full price if not above asking. She purchased approx. 2 years ago and really only did neutral paint to prepare for the sale. House is listed 12-15% above what she purchased at.

[Reilly1017]

I know it’s tempting to save the money because “the house will sell itself” but I think that’s short changing what the agent does and the liability they take away.

Ever sold a car that wasn’t at the end of its life? You can sell private party and in theory get more. Or you can avoid all hassle, liability and stress by trading it or selling to Carmax. Might get a little less, but worth the headache.

Most agents charge 2.5%. You still would have to pay the buyers agent anyways. Some buyers will skip FSBO. The closing process may take longer. You still need an attorney.

There is a reason most sales use an agent. If it was that easy and beneficial we’d all sell FSBO. When an agent sells my house for an agreed upon price quickly I’m happy.

It’s like when a service technician comes in and fixes something super quick but charges you “a lot”. You didn’t pay for the time it took, you paid for the knowledge and expertise to get it done.