The Decrease in Realtor Representation: Understanding the Trend
The use of realtors to sell a home has been a common practice for many years, but in recent years, more and more homeowners have started to represent themselves in the selling process. According to the National Association of Realtors (NAR), the percentage of homes sold by the owner increased from 8% in 2008 to 12% in 2018. This shift in the real estate industry has sparked many questions as to why homeowners are choosing to represent themselves and whether or not this is a wise decision.
The main reason for the decrease in realtor representation is the increase in technology and online resources. With the internet, homeowners can now access vast amounts of information about the home-selling process and have a much better understanding of what is involved. In addition, many online platforms allow homeowners to list their properties for sale, reach potential buyers, and even negotiate offers, eliminating the need for a realtor.
Another factor contributing to the trend is the cost savings associated with representing oneself. When a homeowner chooses to work with a realtor, they typically pay a commission fee, which can be up to 6% of the sale price. This can be a significant expense, especially in a slow market where homes may take longer to sell. By representing themselves, homeowners can avoid paying this commission fee and keep more of the sale proceeds.
Additionally, homeowners who choose to represent themselves often have a better understanding of their property and are better equipped to answer potential buyers’ questions. This can result in a more streamlined and efficient selling process, as the homeowner can provide the necessary information to prospective buyers without the need for a middleman.
However, it’s important to note that while representing oneself in the home-selling process can have many benefits, it also comes with its own set of challenges. For example, homeowners may struggle with negotiating offers, managing open houses, and handling the legal aspects of the sale. This is why it’s important to weigh the pros and cons before making a decision and to educate oneself on the home-selling process. In conclusion, the trend of homeowners representing themselves in the home-selling process is on the rise, and there are many reasons for this shift. From cost savings to a better understanding of the property, the benefits of representing oneself can be substantial. However, it’s important to understand the challenges involved and to weigh the pros and cons before making a decision.