Why Selling Your House To A Realtor is Not Beneficial for you

 

If you’re considering putting your house on the market, then you’ve probably considered the option of selling directly to a realtor. This can be a quick and easy solution for homeowners trying to get out from under an expensive mortgage and is most certainly a fall-back solution for those in need of a quick turnover. 

 

However, selling your house – and potentially the largest investment in your life – to a realtor is not the most beneficial move for you in most circumstances. There are some serious downsides to doing so including: 

 

  • Not getting the most out of your sale in terms of overall price point
  • Not getting the most favorable conditions in your sale in terms of closing costs and warranty transfers
  • Not having a representative to advocate for your needs and wishes, since that person (the realtor) is self-motivated

 

If you’re considering selling your property to a realtor, perhaps to make a quick sale or rid yourself of a financial burden before your next payment is due, then you’ll want to consider the following points. 

 

First, house sales and purchases are usually negotiated by multiple realtors – one realtor on the side of the seller and one on the side of the buyer. From this perspective, each person (or party) in the negotiation will have room to negotiate and communicate through their representative realtor. 

 

However, if you choose to sell your house to a realtor, you lose out on your representation (that is if you sell to your realtor). In that case, you are selling your property without the kind of advice and guidance a real estate agent can offer. 

 

If on the other hand, you’re selling your house to a realtor with the representation of your realtor involved (you and your realtor versus another realtor), you still lose out a bit. The reason for this is that realtors are well-versed in the process of home buying and selling, thus negotiating favorable terms for yourself will be difficult.

 

From that perspective, it might be difficult (or even impossible) for you to get the most out of your sale in terms of price. A real estate agent will likely hardball you – if they know you need to make a sale quickly, they’ll use that information to earn themselves a favorable contract, meaning you might get less out of the deal. 

 

Similarly, real estate agents know exactly what to include in a contract per home warranties, inspections, closing costs, and more. If you’re selling to a realtor, they’ll likely try to wrap the costs of selling your house into your asking price – that would mean you are paying them some amount of money through these channels to sell your house. 

 

If you instead choose to sell to a standard buyer with representation, your room for negotiation is larger, as that buyer might be more willing to take on a portion of the fees associated with the transaction. A real estate agent will not give you that amount of leeway. 

 

Final thoughts

If you’re thinking of selling your house to a real estate agent, rather than a typical buyer with realtor representation, then you might not get the most out of your deal. In the end, doing so is probably not favorable to you, and would be a short term solution that would not be beneficial in the long run.