There are five options to consider when selling your home.
- Hire a Full Service Real Estate Agent
This is how most people sell their homes. You identify a licensed agent you trust to represent you, negotiate the commission and sign the listing agreement. Your agent then takes over as your employee for the express purpose of marketing your home on the MLS and represents your interests in the transaction until the close of escrow.
Though the level of service and results can vary widely depending on the agent, this option is regarded as the most expensive.
If you agree to pay a 6% commission, 3% typically goes to the listing agent to represent you and 3% goes to the buyer’s agent to represent the buyer. If your agent represents the buyer too, he or she would get 6% of the sale price.
The commission you pay is directly proportional to the selling price of your home. For example, if you sell your home for $1,000,000, then you will pay a $60,0000 commission fee. If you sell your home for $300,000 the commission is $18,000.
Ask yourself this: If it takes the same amount of time, money and effort for a real estate agent to sell a $300K house or a $600K house, then why does the $600K seller pay $18,000 more in commissions?
When you choose Everhome's Listed With Owner program, we charge a low set fee, no matter what the selling price of your home is.
- Use an “MLS Entry Only” Company to Promote Your Property on the MLS
For a low fee, MLS Entry Only companies list your property on the Multiple Listing Service (MLS) for you. They might even provide the forms you need, but nothing else. This leaves you unrepresented, vulnerable and at a major disadvantage when handling the critical elements of negotiations, legal paperwork, deadlines, contingency removals, re-negotiations and contract disputes.
Yes, you could have the buyer’s agent prepare all the forms, but that would be like going to court without a lawyer and asking the opposing counsel to represent you. It’s just a bad idea.
Fees for MLS Entry Only options range from $0 to $1000 with various opportunities for the agent or company to make money in other ways during the transaction. These companies make money by charging referral fees or charging to provide services relevant to home improvements, mortgages, title, escrow, photography and other services. The lower the fee, the more pressure you'll be under to use more of their add-on services.
To list your home on the MLS, you must offer a buyer agent commission. The buyer agent commission is negotiable. It can be as low as $1, but it is typically 2.5% to 3% of the sale price. This goes to the broker that procures a buyer for you. On a $500,000 home, a 2.5% buyer agent commission would be $12,500. You would also pay the listing fee you agreed to in your contract with the MLS Entry Only broker.
- For Sale By Owner (FSBO) – For Sale by Owner is the process of selling your home and handling the negotiations, paperwork, legal disclosures, contingency removals, contract disputes, escrow and title without being represented by a Real Estate Broker.
Though you don't pay an agent to represent you, FSBOs generally offer a commission of 2.5% to 3% of the sale price to an agent that brings them a buyer. If you offered 2.5% of the sale price, and were selling a $600,000 home, the buyer agent commission would be $15,000.
Typically FSBOs rely on the buyer’s agent, a lawyer, escrow or a friend to help them. The buyer's agent works for the buyer, so it's not in your best interest to let that person control the negotiations.
It is equally ineffective to rely on escrow and title to represent you. Escrow and title are neutral parties and can provide required forms, but cannot offer any advice as to how to properly complete them. As neutral parties, they are unable to assist with any disputes that come up before, during or after the close of escrow. Escrow's role in the transaction is to help execute the agreed upon terms of the transaction and nothing else.
Conversely, Everhome's Listed With Owner program gives you full service representation in all negotiations. We work for you!
Everhome’s Listed With Owner Program: The Best of Both WorldsThe fee for our Listed With Owner Program is $2950, plus any commission you might offer a buyer agent to procure a buyer for your home. Buyer agent commissions offered are typically 2.5%, but can be as low as $1 and are sometimes as high as 4%.
For a low set fee, Everhome gets your home listed on the Multiple Listing Service (MLS), like Zillow®, realtor.com®, Homes.com®, and all the real estate broker websites like Redfin®, Century 21®, Keller Williams® and RE/MAX®. This massive exposure results in about 400% more traffic than just Zillow alone. Then, you show your home and when a buyer is ready to write an offer, we step in and fully represent you just like a full fee, full service agent. We handle the negotiations, legal contracts, mandatory legal disclosures, contingency removals, contract disputes, escrow and title. We even mitigate risk with free legal consultations, and insure the transaction with our Errors and Omissions Insurance for even more peace of mind.
You get the massive exposure of the MLS, while retaining the flexibility, control and cost savings of For Sale by Owner. It’s just like hiring a full service real estate agent, without paying a 6% commission fee! You do the parts of the transaction you can do, and we handle everything a skilled, licensed professional should do. Our goal is to get you the best price and terms, mitigate risk, and manage the many time-consuming details of selling a home.
- iBuyers (The i stands for instant) – iBuyers are real estate companies that buy properties at a discount directly from home sellers and resell them for a profit to home buyers.
Theoretically, iBuyers cut out the need for hiring a real estate agent to market and sell your home. While this may save time and effort, the downside of selling to an iBuyer is that you will net an estimated 5%-10% less on the sale of your home.
If you're a home seller who wants to sell fast and with minimal fuss, selling to an iBuyer is an option worth considering. We can help!
Call Everhome at (805) 379-3300 to find out if your house is eligible. You will receive one or more cash offers in about 24 hours. From there, you can decide whether to proceed with the transaction. Depending on your preference, the transaction can close in a matter of days or up to 90 days.