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Why You Should Use Real Estate Agents in a Down Market

April 23, 2012 | Comments: 0 | Views: 207

In a down market, many people are reluctant to use real estate agents as the last thing they want to do is pay a 6% commission to sell their homes. These people prefer to go it alone and go down the "for sale by owner" route. However, this is a mistake for several reasons.

1. Your home isn't going to sell itself

While it is logical to think that real estate agents should lower their commission rate during a down market to attract more business, this is backward thinking.

In a booming market, homes tend to be able to sell themselves regardless of what an agent does. In a down market, you will need an agent to help you sell. In fact, there is a good chance that your house will be able to sell as an agent will work harder because they are unsure as to when business will pick up again; they have no guarantee that business will be coming in so they will do everything they can to try and make the sale to earn their commission.

2. A professional's opinion is needed to judge your home's appearance and condition

Whether you have been living in your house for just a few years or 40 years, you will struggle to see it in a way that potential buyers will see it. As you are so used to seeing things that are outdated, cluttered and in general disarray, you have become immune to the sight of these things. You will also have no idea what the competition you are up against is like, unless you have been shopping for a new home.

Before you even put your home up for sale, good real estate agents will walk through your home and tell you what needs to be repaired, upgraded and cleaned up which will certainly help you to sell your home.

They also have knowledge of what buyers in your area tend to love or hate, and will suggest how to play these aspects of your home up or down.

3. Great agents earn their fees

Agents with a proven track record will be able to sell your home for more money in less time. Thanks to the additional money you get from a higher sales price as well as the decreased carrying costs received from selling your house faster, this can easily pay for the agent's commission.

While it might be true that sellers have lost equity and values are down, there is also more competition and less volume. Therefore, buyers are slow to make a decision and getting financing can be a challenge.

Sellers need an agent who can provide a high quality marketing service which will lead to more showings as well as a proven track record of being able to sell homes faster and at a higher price than other agents.

4. You won't be saving much anyway

With the traditional 6% commission you will have to pay when you sell your home, only 3% of this will go to the seller's agent. Even if you decide to try to sell your home by yourself to avoid the 3% fee, you will most likely still need to pay 1-3% to the buyer's agent. Therefore, you won't really be saving 6%.

Trying to convince buyers to work with through the process without an agent could raise all kinds of red flags. As a result, the pool of potential buyers can be severely limited, so real estate agents really are needed.

If you need some professional real estate agents in Thailand, visit Bangkok Real Estate Agents.

Source: EzineArticles
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