As reported by Reuters, a Zillow analysis of December listing prices compared to the final sales price shows buyers across the country paid, on average, nearly 3% less than the seller’s asking price. That means sellers received about $5,600 less than the last listing price for the home. (This lower price doesn’t take into account price reductions that agents may have suggested during the listing period.)
Making the seller’s situation even worse is the need to pay real estate agents up to an additional 6% in commission. Using the median home sales price on Zillow of $209,900, the seller working with an agent would lose up to an additional $12,594 in real estate commissions. So by the time the seller is done negotiating with the buyer and paying the agent’s commission, the typical seller would LOSE OVER $18,000 on the sale of their home. That new math isn’t going to make sellers very happy.
So, what’s a seller to do? Make the real estate math work for you! First, eliminate the real estate agent commission.
Next, set a realistic price for your home. With the Home Valuation Report from Electronic Appraisers, included in your listing plan, you’ll get the most reliable tool available to set your price: recent sales figures for properties in your neighborhood. Electronic Appraisers is ranked first in accuracy, value and ease of use in an article by MSN Money Central, comparing Electronic Appraiser with other providers offering similar products. EA has helped thousands of home buyers and sellers save the agent commission.
Here’s something else to consider from the Reuters article: Zillow noted, “More buyer negotiating power tends to put downward pressure on overall home prices and may push more mortgages ‘underwater.’ This negative equity has been one of the biggest banes of homeowners, making many unqualified for home loan refinancing and preventing some from selling.”
If your home has lost a considerable portion of its value in this economy, and you think you can’t afford to sell because you’ll lose what little equity you have left to an agent, think again. You can save the commission by going with a FSBO model. And if you check out our FSBO Mythbusters, you’ll find you’ll be likely to get a better price selling it yourself than with an agent!
Buyers are going to be very motivated to purchase a home before the April 30th incentive expires. So, if you’ve been thinking about selling your home, now’s the time to make the new math work for you.
If you’re looking for more information, see the Reuter’s report.
