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Saving the Commission.
The principal objection raised most frequently
is that the owner can save the commission by selling his home
himself. Experience and facts prove this is usually not true.
A. The National Association of Realtors conducts
a yearly survey on many home sales and has determined that they
net anywhere from 3-9.5% more by selling their property through
a Realtor.
B. How a Broker saves you money:
| Higher sales price |
3-9.5% |
| Quicker sale - saves payments, utilities, etc. |
1-2% |
| Loan discount fees - savings |
1-2% |
| Legal costs - savings |
1-3% |
| Possible law suit |
1-3% |
| Advertising - savings |
1-2% |
| Needless repairs and expenses |
1/2-3% |
| Quicker settlement |
1/2-1% |
| Owner's time |
1-2% |
| Signs, flags, etc. |
1/4-1/2% |
| Total savings |
10.25-28% |
Not all these will be evident in every transaction, but a large
part of each of them will be present.
C. Buyers today are knowledgeable and they
feel, whether it is true or not, that:
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Owners over price their homes.
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What the owner wants and expects to get
for his home is inflated by the amount of the commission,
so in case he can't sell his home himself, and it has to be
turned over to a Broker, the selling price will include enough
to pay the brokerage commission and still net him, the owner,
what he actually wants to get.
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Thus, buyers dealing with homeowners directly,
will argue and insist in most cases on a reduction in price
of at least equal to what the commission would be if the owner
had to sell at the same price he would net from a sale by
the Broker. He is the loser because of time, legal fees, advertising
costs, etc.
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