Some of the benefits of selling your property to a real estate agent are that they can tell you how much your property is worth (retail value) and sell it close to that price. Unfortunately for most sellers, their homes are typically worth much less today than they would like. Neither an investor nor a real estate agent will be of much help with this aspect of a home sale because a seller’s home is worth what the market is willing to pay. To find out how much the market is willing to pay for your home, a real estate agent uses comparable sales. “Comparable Sales” is a real estate term for nearby similar homes that have recently sold. Anyone can now check the value of their home based on comparable sales with websites like CyberHomes.com and Eppraisal.com. You can find the value of your property through an agent, but now on the Internet, you can also find out the value yourself.

Can a real estate agent sell your home close to the true value of your home or more? In my local area, most houses sell for about 90% of their value. Subtract the real estate fee from 6% and most home sellers get 84% of your home’s value. At RealEstate.AOL.com you can check median home values ​​and median home sales prices for your local market; Right now you will find a discrepancy with the sale price much lower than the value.

However, the higher the sale price of your home, the more money your agent will make, therefore an agent has more motivation to sell their home quickly, right? Consider this, the median selling price for a home (in my local market) is roughly $ 180,000. Your agent will earn 6% of the sale price or $ 10,800. This commission is shared between the listing agent and the sales agent. So now, your agent will receive $ 5,400 for your home. However, the real estate agent needs an agency, as it is illegal for a real estate agent to represent buyers or sellers in a real estate transaction without first signing with a brokerage agency. Each agency requires different commission splits, from a 50/50 split with a novice agent to an 80/20 split with an experienced agent. So now the agent has $ 2,700. The agent pays taxes on his income rate plus 15.3% on “self-employment income.” That can be 30% + 15.3% tax on the $ 2,700. $ 2,700 – 45.3% is approximately $ 1,500 left over. So for your $ 180,000 home, a real estate agent will likely make a little over $ 1,500. Let’s say he or she works very hard to market your property and gives you an additional $ 5,000. The agent will only earn $ 41 ($ 5,000 x.06 – 50% (listing agent and buyer’s agent) – 50% + (agency) – 45.3% (tax)). What is the probability that an agent will do the work necessary to bring you $ 5,000 and then get paid $ 41 for your efforts? The possibility of this happening is nil.

However, if a real estate agent puts your home at a lower price, it will sell faster. If your home sells faster, the agent can sell more properties and make money faster than negotiating a high sales price on fewer properties.