This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage. Just increase net profits is attractive to sellers. Keep in mind, just because you don’t have an agent as a seller doesn’t mean you can preclude the buyer from having an agent.
Most sellers end up paying between two to three percent to the buyer’s agent in self-represented sales. However, if you are new to real estate sales, the buyer’s agent might try to negotiate a bigger commission because he will most likely be doing work on both ends of the transaction to make up for your lack of experience and understanding.
Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save at least three percent of the commissions by representing himself.
It is also possible that the transaction is very straightforward. Perhaps it is a new construction or being sold as is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.
Keeping Things Personal
Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all Modesto codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties