If you ask the average person how they’d go about selling their house if they had to, the most common answer you’ll get is, “I’ll find a good real estate agent”. And there is quite a good reason for that. For most people, choosing their preferred home sale method is kind of a no-brainer, and that’s typical because they view it as their only option. Since working with realtors to find traditional buyers is the norm and has been so for many generations now, many people have begun to associate selling a house with hiring a real estate agent. As such, they usually give little consideration to any other sale option and commonly think that everyone needs a real estate agent to sell their house.
However, it is very important to note that if you plan on selling your house, their our numerous was to get the job done as from following the traditional method. Each of these alternate home sale options has its own respective pros and cons. In addition to this, each one also varies in terms of which circumstances it would fit best for. So sometimes it may do both you and your looming property sale a world of good to consider other options if you plan on selling soon and would prefer to generate the best sale results (in terms of time taken, money spent, final sale price, and even energy input). So if you’re wondering how to sell your house without an agent, you do have options.
Be that as it may, if you have your heart set on selling your property traditionally, we totally understand. In this blog, we are going to help you out by taking a deep dive into this subject and unpacking everything you need to know about hiring a real estate agent. We’ll briefly expand on this particular sale option and what to expect when pursuing it, highlight a few pros and cons then show you how you can go about finding the right real estate agent. So if you’re interested in any of that stuff, read on for more…
Everything You Need to Know About Selling Your House Traditionally (with a Real Estate Agent)
Here is our overview of selling your house with a real estate agent in Minneapolis MN.
Hiring a real estate agent and taking to the open market does come with quite a few benefits; I mean it is the most common home sale option people turn to for a reason. But you shouldn’t rush into hiring an agent when selling your house. It is important to make sure that you’ve done your research and know exactly what to expect in terms of what lies ahead before you decide to call up an agent within your local area and/or sign the purchase agreement. This will allow you to better determine what listing your house in Minneapolis MN will mean for your home sale efforts and final results. Because if you’d like to make sure that your making the right choice, and avoid any complications that may come up further down the road from choosing the wrong home sale option, you’ll need to know whether hiring an agent is actually worth it for you. And this is something that you’ll only discover by doing your homework.
Below, we are going to start off by briefly defining the method of traditional home sale and highlighting a few things you should expect if you decide to follow this particular sale method.
So let’s get started…
Introduction to Hiring a Real Estate Agent
Selling a house traditionally is quite simple. To sum it up, the idea is to put a property up on the open market and find retail buyers (buyers willing to pay full price for a house), then sign the contracts and collect your money. But since most people don’t have to knowledge of professional expertise required to list their properties by themselves and fill out all the relevant legal home sale paperwork, hiring a real estate agent to do all of this on their behalf is usually common practice.
Advantages of Hiring a Real Estate Agent
Now while it is also possible to sell traditionally via an “FSBO” (for sale by owner) listing, most people find it favorable to work with a real estate agent mainly because of the fact that this approach allows them to hire someone who will then carry out the bulk of the workload on their behalf. Their agent will:
- Help them with all the legal paperwork and deadlines
- Handle most of the sale advertisement efforts
- Coordinate all of the scheduling on their behalf (e.g. inspection dates, showing events, etc.)
- And oversee some of the legal aspects of your home sale
So, in the light of all of these amazing things, it may feel like hiring a real estate agent is the obvious option. However, as with most things in life, working with an agent does have its downsides. These include a few key drawbacks that are common knowledge, as well as some facts about selling your house traditionally that an agent won’t tell you.
Disadvantages of Hiring a Real Estate Agent
Many people think that agents will do all the work and leave them to go about their day-to-day business. However, the truth is that selling your house traditionally actually comes with a lot of hassles, stress, and inconveniences, the first begin the long sale timeline. On average, it takes between 2-3 months to sell a house with a real estate agent. As such, if you need to sell fast, hiring an agent is likely the worst thing you could do.
Other problems you’ll likely come across when selling your home with an agent include:
- Deep and Regular Cleaning (agents will require your house to remain in picture-perfect condition throughout the sale process)
- Unexpected and Inconvenient Showings
- Investment in their marketing strategy (e.g. posting ads on your social media and prepping your house for photoshoots to name a couple)
These are a couple of reasons why it may be better to opt for a direct sale vs hiring an agent.
In addition to these drawbacks, let’s not forget the impact that selling your house traditionally will have on your finances. Usually, real estate agents charge a hefty price for their services, which is typically 6% of the sale proceeds. But that’s not the only cost homeowners face when selling with agents. Other items that they’ll likely require you to pay for before the sale concludes include:
- Staging Costs
- Repair & Upgrade Costs
- The cost of scheduling inspections and upgrades
- Closing costs
And last but not least, you should always remember that when working with an agent, there are no guarantees. As such, even after you’ve done all the work and paid all the expenses, it’s possible that you may not be able to sell your house at all (depending on the state of the real estate market at the time).
How to Find a Good Real Estate Agent
The search for a real estate agent in Minneapolis MN can be frustrating. Often, when there are a large range number of real estate professionals you can choose from within your area, it can be difficult to pick out the best agent. As a result, you may be asking yourself, “ what are the steps that I can follow to help me when finding the best real estate agent within my local area?” If you are, we’ve got you covered in this next section.
Many large real estate brokers will spend thousands of dollars each month to ensure that their agents are the most visible: be it online, in the Yellow Pages, or by erecting giant billboards in the most trafficked sections of Minneapolis.
However, real estate agents backed by the largest market engine aren’t always the best. Even if they are, they may not be a good fit for your specific circumstances. Below, we are going to provide you with a few tips that will be sure to help you find the right real estate agent in Minneapolis MN.
1. Get Reviews… Real Reviews
Online reviews of real estate agents can be easily manipulated. They can oftentimes be little more than paid advertisements. Before you settle on a potential real estate agent, it’s important to get honest reviews. In this regard, any reputable agent will be glad to provide you with a list of their recent clients. If they refuse to, this may be a Red Flag.
Also, reviews are one of the best ways to see how any real estate professional does out in the marketplace.
As a final way to check out the agent, hit Google and type in “[name of agent] reviews”, then see what pops up. If you see a bunch of bad reviews on websites like yelp, see if the agent tried to engage with those negative reviewers online to resolve the situation
2. Ask the Right Questions
Ask the agent (or better yet, his or her former clients) the following questions to gauge the agent’s skill. These questions will show you their ability to represent you as a buyer or a seller:
Was there any part of the process of buying or selling a home that clients were pleased or particularly displeased with?
- What was the asking price?
- What was the sales price?
- What properties have you worked with in my location?
- What about similarly sized properties?
In addition to this, sometimes going the direct route is the best option. When looking for a local Minneapolis MN real estate agent, you should ask any prospective agents that you interview how they intend on selling your house. Ensure that you also ask them what they can do that others can’t.
Usually, the great ones would already have a marketing plan. These agents will get your house out there and on the market in a big way.
3. Check the Agent’s Credentials
Check with your state’s real estate regulatory authority to verify the agent’s licensing. While you’re on that website, you’re also often able to look into regulatory actions and complaints against the agent.
You should also ask the agent how long they’ve been buying and selling homes. If they’re representing an agency, ask how long they’ve been with that particular agency. Also, ask about their history with other firms.
Above all, it’s important to choose a real estate agent in Minneapolis that you can trust. Regular communication is extremely important when selling your home. For this to be good, your agent must understand both your needs and your specific situation. To do this and enable your property to adequately compete within the market, a good agent should be able to answer questions such as:
- How many inquiries have been made about my home?
- How many of these inquiries came from people likely to make a purchase (not just window shoppers)?
- What other properties in this neighborhood are for sale? What is the asking price of those homes?
4. Consider the Price
Oftentimes Minneapolis MN home sellers want to go with the lowest pricing option.
Heck, when you look at the numbers… if a real estate agent is earning 3% on a $100,000 sale… that’s $3,000 in fees for just the one agent (usually both agents representing the buyer and the seller earn commission). This isn’t cheap. Whatever your case, ensure that you do your research before you agree to a cut-rate agent or a flat fee agent because, typically, this could affect the quality of service you will get.
Some of the best real estate agents in Minneapolis have great marketing systems that can sell homes faster and for higher prices. So even if you find someone to sell your house at a 1.5% fee… look long and hard at whether you’ll be saving money long term.
It’s important to avoid low-quality real estate agents. These could be “rookies” who will do anything to make their first sale (including leaving dollars on the table). A good real estate agent can make selling your home an extremely smooth experience and will work in your best interest…
So there you have it. There is everything you need to know about selling your house with a real estate agent.
More Questions? Maybe you’d like to know the difference between Hiring an Agent vs. A Direct Sale to FastPath Home Buyers. Maybe you’d like to know more about situations that prefer direct sale vs agents. Or maybe you’d like to find out what listing costs to expect when selling your house. Whatever you’d like to know, feel free to contact us either by calling (612) 351-2384 or by filling in the short form below.