What to think when someone says they saved by not using an agent...

Let me start with this... I am a huge supporter of Realtors and believe that most buyers and sellers benefit from having professional representation.

But this weekend I saw numerous news reports that talked to sellers who said they saved thousands by not using an agent to list and sell their home, and even attorneys who said that using a lawyer was better as it saved money. I have to take issue with this... there is a huge point being missed in this news coverage.

First off, yes, if you sell your home yourself you save agent fees. That is one hundred percent accurate, but it does not mean you netted more money. The reality is, studies have shown that homes listed and marketed by professionals sell for more than FSBOs sell for. Agents can...

• Market through the MLS, FSBOs cannot
• Homes that are listed often get more exposure on real estate websites (Zillow is a prime example)
• More marketing means more people see the house online
• More people seeing it usually means more showings
• More showings means more / higher offers
• This means more net to the seller
• This net is often higher, even after an agent is paid

The real answer here is what nets the seller more, and many of these FSBO sellers actually lost money by selling their home themselves.

Mow, I agree an attorney is a valuable asset during a home sale / purchase, but they cannot market the home for the seller. They provide legal advice on contracts and terms, which has an obvious value, but they do not specialize in negotiation, pricing homes, and working with other agents and buyers.

My advice, use an agent. Most of the time they will actually net you more, but they also do so much more. From marketing to negotiation, from handling remedy requests to communicating with the other side, there is a huge value to professional representation. You use an attorney if you are arrested, an accountant for taxes, a doctor when you are sick... why would you not want professional help on your biggest financial transactions?

Using a veteran agent who knows their business is a good idea, or a newer agent supported by a team and broker, but use an agent. Interview several, ask a lot of questions, pick wisely and they will help you.

Agents help clients everyday, and usually do not actually cost the client. Instead they negotiate better price and terms, handle the process, and make sellers net higher and buyers price lower.