Wednesday, September 14, 2016

Can You Sell Your Home Without a Realtor?

Okay, first, the numbers: You have a $400,000 house/townhome/condo that you want to sell. If you list it with a Realtor, you'll pay a $24,000 commission at six percent, $20,000 at five percent. Half goes to the listing broker, and the other half goes to the buyer's broker. The net (not counting escrow and title deductions) is $376,000 or $380,000.

Is it worth $20,000-$24,000 to pay to list? When I was still a licensed broker, it usually took ten to 30 hours of actual work to successfully list a home. At $200 per hour, that's $2000 to $6000--far less than even the listing agent's side of a traditional commission. Based on these numbers, DIY is at least worth a look.

But there's another reason besides the numbers. That reason is Zillow. Not just Zillow alone--there are other online portals--but Zillow is the big gun. As in disruptive.  Joel Burslem of 1000watt Consulting (they advise real estate brokers) recently published a post about his aunt selling her own home in three days. Zillow saying they're not the listing business, he says, "is like Uber saying it doesn't want to get into taxi cab business."

The prime objective in selling your home is to ensure that every buyer out there looking for a home in your location and price range knows yours is available. Achieving this objective used to require the multiple listing service. No more.