If you’re considering selling your house in Massachusetts, you should know that doing so through a realtor has some clear pros and cons. Realtors can be a great resource if you find the right one, but they can also be a great obstacle to your home-selling goals.
Today, we’re going to go over some of the biggest pros and cons of using a real estate agent to sell your home.
Pro #1: Massachusetts Real Estate Market Knowledge
A good realtor (emphasis on “good”) will know the ins and outs of the local market. She’ll know what homes like yours are going for in that particular area, and she’ll be able to help you price and market your home according to local preferences.
We pointed out in a previous article that mispricing a house is one of the biggest home-selling mistakes in Massachusetts. Why? Because an overpriced home can drive down demand, meaning you’ll get fewer high-quality bids on the property. Fewer bids means a lower final price, which is ironically what you were trying to avoid.
For this reason, using a professional to price and advertise your home can be a good idea in certain cases.
Pro #2: Publicity
Realtors, by virtue of being licensed, have access to a feature called the MLS, or Multiple Listing Service. This is essentially a website where other realtors go to find homes for sale in Massachusetts for their clients. On the MLS, your home gets significant exposure to buyers.
On top of that, websites like Zillow and Redfin pull data from the MLS about homes for sale in Massachusetts. This means your home will also show up on these websites, giving you even more exposure to potential buyers. More buyers means more bids, and more bids can mean a higher sale price.
Pro #3: Presentation
A good realtor (again, emphasis on “good”) will know how to market your property to fetch top dollar or close to it. They will take excellent photos, stage the property, and share it on social media and other platforms. They will arrange an open house, print beautiful brochures, and show the property in the most appealing way possible. They will, in other words, get as many interested eyeballs on your home as they can and present the property in the best possible light.
You could, of course, do all that work yourself. But it is a lot of work for someone who does not do this day in and day out. Good realtors have years of experience getting the most money possible for homes, and that experience is hard to beat.
Now, let’s look at the cons, which are significant as well.
Con #1: Money
For the full package of realtor services, Massachusetts agents typically charge 5-6% of the home’s final sale price as commissions (although commissions are negotiable and there is never a set rate).
For the average Massachusetts home, which is worth around $550,000, that often amounts to over $30,000 into the realtor’s pocket. That is a very significant chunk of change, so you need to be certain you’re getting your money’s worth with the realtor. The unfortunate reality is that the average agent only sells a couple homes per year (at best) and therefore does not have the skills or the expertise to justify the commission they are charging.
So, if you’re going to hire an agent, make sure you interview several and only hire the best. Otherwise, using a realtor can become a money-losing proposition.
Con #2: Publicity
Wait, but wasn’t publicity a benefit earlier in this article? Yes it was, but publicity can be a double-edged sword.
Some people whose homes might need a bit of work or upgrades don’t want nosy neighbors, judgmental realtors, and the general public traipsing through their property on a daily or weekly basis. It can feel invasive, chaotic, and annoying to some. That is why folks might choose to sell their property privately to a Massahusetts cash home buyer, family member, friend, or other end user.
Con #3: Complexity
Realtors can be demanding. In order to get absolute top dollar for your home, they’ll have you jump through all kinds of hoops.
First, they might ask you to have photographers and stagers come into your home to make it “marketable” — an expense you will probably have to cover. Then, you’ll have to endure one open house after another for as long as necessary, until the right offer comes in. Then, you’ll have to negotiate offers through your agent with each of the bidders. Then, you’ll have to wait for the buyer to complete his inspections and get his financing and satisfy any other conditions of sale.
This is the traditional way to sell a home. When you work with an agent, they are typically only familiar with this traditional way of selling, so you will have to go through this entire process with them (and it is quite a process). That’s why it’s so important to find the right agent if you decide to go down this path.
There is, however, a simpler way to sell your home without a realtor. You can learn all about it here.
And as always, if you have any questions, don’t hesitate to contact us at (617) 831 6186.