Because of the complexity of selling a house, many homeowners will seek the help of a listing agent to list their house on the MLS. These experts in selling real estate can provide valuable guidance throughout the real estate transaction. They know how to market the house, negotiate a good sales price with fewer contingencies, and keep the transaction on schedule. When your house doesn’t fit the ideal listing model, a listing agent will keep things to themselves to obtain the listing and hopefully profit from the sale of your house.
Sometimes, home sellers are under pressure to carry the expenses of relocating before selling their first home. To most, time is of the essence for these sellers. It becomes difficult to wait out the listing process as it comes with showings, inspections, and waiting for a loan approval for buyers. This isn’t feasible to someone who needs to quickly work through the sales process. In addition, some sellers aren’t in a position to complete the prepping and repairs either physically or financially. If you can’t prep or repair your house, you can find out how to sell it regardless here. And if you still want to know what a listing agent won’t tell you, read on as we explore what they are.
Difference between a selling agent vs listing agent?
Industry jargon can cause lots of confusion for those not actually in the industry. So let’s clarify what these terms actually mean and what their roles are before you learn the top 5 things a listing agent won’t tell you. A listing agent, sometimes referred to as a seller agent, represents the seller on the sale of their house. They are responsible for preparing, marketing, and scheduling the showings of your house to create demand for it. They collect offers and then help you understand what the offer means and additionally negotiate on your behalf to your wants and needs when it comes to price and contingencies.
A selling agent, sometimes referred to as a buyer agent, is an agent responsible for sending your property to their client and scheduling the showing for their client. They attend the showing and after determining if their client likes the property, they prepare an offer and submit it. They negotiate a price and contingencies in order to benefit their client. They work for the best interest of their buyer.
Number 1 – Your options for selling without using a listing agent.
Keep in mind that a listing agent only gets paid when they sell your house. A majority of agents only know how to sell your house using the MLS and the ways they’re familiar with it. A strong investor agent, like those at SILT Real Estate and Investments, LLC, will keep your best interest at heart by giving you all options that aren’t typically understood by listing agents. The direct buyers and the full-service team of industry pros at SILT Real Estate and Investments, LLC are local, living, and working right here in the Chicagoland area, and we’re proud of the work we do as a part of the community. To that end, our goal at SILT Real Estate and Investments, LLC is to help improve the quality of life in the communities we work and help our neighbors, like you, solve their problems by providing them all the options. And sometimes that means listing your property. Other times it means selling to a direct buyer.
Number 2 – Your expected closing date.
The exact date you close, or even an expected closing date, will not be something a listing agent can tell you with any certainty. The MLS has its limitations. Even though it creates the greatest demand for the sale of your home by marketing to the widest audience, you still can’t get a guaranteed closing date. It will still require you to wait out the buying process with all the possible changes that could occur even after the property is under contract. Even the best agents who list can’t give you an exact time frame even if the ideal marketing and showing scenario occurs. By talking with investor agents at SILT Real Estate and Investments, LLC, we can buy your house if you need to sell quickly and explain all the other options you have at your disposal.
Number 3 – The expenses and fees you’ll pay for selling your home.
Selling every home has sees and expenses. Selling with a realtor also includes commissions and will be the most costly to you when selling your home. Common things agents will forget to talk about are your holding costs and fees needed when listing. The reason it becomes difficult to tell you is that the holding time of a property can vary so much when listing on the MLS and fees will vary from county to county, and state to state. It’s much easier when dealing with a cash buyer like SILT Real Estate and Investments, LLC because we cover all the fees for you and there are never any commissions when selling directly to us.
Number 4 – The price your house will sell for and your profit.
Agents can’t tell you what price your house will sell for because there is no guarantee that a home will sell for its listed price. Let’s be honest, some agents will also tell you a higher price than your property may actually be worth to secure the listing. It’s called buying the listing and as a result, will cause your property to sit on the market too long and will have to use price reductions to eventually sell your house.
As a result of not being able to sell by a certain time and not knowing the holding costs as well as the fees that will cut into your profit, a real estate agent won’t be able to give you a clear picture of what your net profit is when listing your house with a seller agent. With an agent listing, you can expect to pay anywhere from 5% to 6% total commission to both agents. Factoring in that most expenses range from 2.5% to 4% for selling your home, you could end up losing out on 10% of the sale of your house, before anything else gets factored in. We’ll do a little math to show exactly how that works in a little bit. By selling your house to a direct buyer and avoiding a listing real estate agent, you can put that 10% right back into your pocket. Now a little math.
When you only owe 80% of a $200,000 house (that’s $160,000 left as a loan), you’ll walk away with about $20,000 in your pocket. You sell the house for $200,000 and after fees and commissions, you’re left with $180,000. You have to pay back the loan and that leaves $20,000 left in your pocket. It seems unfair that everyone else makes money off the sale of your house, doesn’t it?
If you want to see what the offer from a direct buyer would look like, take a look here. Or if these four things already make you want to see what a direct offer would be from a direct cash buyer, just fill out the form below.
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Number 5 – Importance of extras to sell your property
The extras we’re talking about include presale inspection, staging, and professional photos. Most agents who list homes won’t tell you about these things because they can be costly and some agents will pass the costs down to the seller. A good listing agent knows that it is best to present the home in the best light possible to attract the most interested buyers. However, it may come at the cost of also having repairs or some rehab done to the home. You can address some concerns by having a presale inspection, but not all concerns will be addressed until the buyer goes through due diligence and does their inspection. This can also cause a delay in the sale or a loss of profit from the sale of your house.
It can be very important for listing your property by an agent to ultimately receive the guidance and help you need in Illinois. A listing agent can’t tell you these things because they unfortunately just don’t know yet. From pricing, other options to sell your house, a closing date, the expenses and fees, your net profit, and even the importance of extras won’t be made clear until the house actually sells. If using an agent to list, even if they are from SILT Real Estate and Investments, LLC, ensure that you receive options and consistently engage with them to create good communication throughout the whole process. If this seems like it’s too much trouble for you or you’re on a time crunch, fill out the form below to get started on working with a direct buyer for your house. And if you have any questions, contact us here or give us a call at (708) 415-3801.