In recent years it has grown in popularity to use web based companies to sell your home. These companies advertise a cheaper way to sell your home, hassle-free and they even claim to have no fees or commissions. Doesn’t that sound like a dream! So what are the pros and cons to using these companies instead of a licensed agent? Let’s talk about them!
Personal Touch
First off, personal touch. Buyer’s agents are more likely to want to work with another agent they know and have worked with in the past. People want to work with people, especially ones they know by name and can call any time.
Licensed agents also have long standing relationships with lenders and appraisers in your area. If there are any problems that arise during the selling process your agent has the relationship to call and work them out professional to professional.
Working with a web based company limits you to only communicating through email and a call center. Not to mention you don’t have 1 specific contact you communicate with through the whole process. Most people don’t enjoy this process while working with banks or national companies, why would you want to deal with this why selling your home?
There are so parts of your home that just can’t be seen through a photo. A quiet street, close to all the stores, best school district, etc. There are just selling features of every home that only a licensed realtor could put a value on and sell.
Local Knowledge
A licensed agent has the ability to call any local agents in the area to sell your home. Maybe they have another agent who they know has buyers looking for a home just like yours. Or maybe your home would make a great investment property, and the know an agent who works with a lot of investors. These are situations you just won’t get with a web based company.
Web based companies also don’t live in Southern Utah, or wherever you happen to be from. They have no passion for the area, no knowledge of the neighborhoods. They can’t even tell you where kids will attend school who live there.
Local licensed agents are also aware of any issues that are arising in the area, or impact those who live in the area. They also aren’t a part of the local MLS system. This restricts them from the depth of knowledge you need to sell a home.
Commitment
The people you will work with at a web based company have no buy into your situation. They do not win or lose if your home does or does not sell. Therefore the commitment they have to sell your home just isn’t there like when you work with a local agent.
You are also restricted to hours of operation. Web based companies, like any other company, have normal business hours. They work 9-5, M-F. Anyone who has ever bought or sold a home knows that the majority of Real Estate does not happen during normal business hours. This means the majority of the time you are coordinating your own showings.
When using web based companies you are also restricted on what sites your home will be seen on. Most of these companies claim to list your home on multiple sites, but usually this is failed to ring true. As a member of the Washington County Board of Realtors and the National Board of Realtors, your listing is automatically linked, within 48 hours of being added to the MLS, to multiple websites including, but not limited to, Zillow, Utah Real Estate, Realtor.com, Door to Door, Homes.com, and many more!
Safety
When buyers find your home online, you have no way of knowing their intentions for seeing your home. This is the place filled with all of your valuables and anything of any value to you, or your family. Would you just let strangers in willy nilly? When you work with a licensed agent they are trained to be able to screen buyers before showing them a home. Not to mention these buyers will be accompanied by a licensed agent. Licensed agents also work with lenders to be sure the buyers they work with are truly in the market to buy a home.
There are numerous legal contracts involved in selling or buying a home. Licensed agents are trained and re-trained each year to deal with these contracts, and to be sure both you and the buyers are protected from any legal troubles.
Agents are also required to obtain Errors and Omissions Insurance. This insurance is there for your legal protection. As members of the National Board of Realtors licensed agents are required to hold the highest protection plan of this insurances to ensure they are protecting both the buyer and seller’s interests.
Cost
The biggest selling feature of these web based companies is the idea that it doesn’t cost you to sell your home, or that it is drastically cheaper. The truth is it isn’t. You are still offering to pay a buyer’s agent commission of 3% of the purchase price. Not to mention the fees you pay to these web based companies, which are usually paid before the home sells, and kept whether or not your home ever sells. You also pay costs that your listing agent typically takes on such as photography for the listing, signs, etc. Add in the typically lower purchase price when working with these companies and the time you’ve invested in selling your own home, and now the HUGE savings you were offered have turned dismal. That is if your home sells at all. Now factor in all of the benefits above, and I think it’s clear to see where your money is better spent.
As you can see there is a lot of factors involved in selling your home. Price is a pretty small portion of that. Selling a home can be scary, stressful, and sometimes daunting, and I can understand the appeal in selling your home for what seems like less cost and hassle. The truth is your licensed agent is taking on just as much responsibility and liability when they choose to list your home, at least then you know you have a professional partner who is just as invested as you in the sell of your home.
If you are interested in buying or selling in the Southern Utah area, feel free to give me a call and see what opportunities are available to you!