Sell your own home make more money

By | September 11, 2013
Consumer reports have shown that when home owners sold their own homes, not only did they save on hefty realtor commissions, but they also got higher prices. In fact homeowners received $5,000 less on average when they sold through a realtor. When they sold on their own, they almost always got their original asking price.This should come as no surprise since realtors are in it for the money. The more houses they sell the more money they make. Realtors almost always deal with other realtors and both parties in wanting a quick transaction often lower the price of the house to bring about a quick sale.

Even when renting out, it is best to try and do so yourself. Realtors take a commission that equals to either one month rent or 10% of the annual rent. In addition many realtors have a built in clause whereby every year that the tenant renews the lease, the realtor again gets a commission. This can cut into any profits you can make from leasing and may even make it economically unfeasible to rent.

MoreoverĀ unlike a house sale, where once the house is sold you simply walk away, in case of rental properties, you have to “live” with a tenant that the realtor gets. If the tenant leaves or simply defaults on paying the rent or causes other problems, it becomes your headache to deal with and to go through the motions again of getting another tenant. If you were to use a realtor again …then you guessed it, realtor’s commission to be paid once again.

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