I will tell you why it’s easy to sell a house in this real estate market. In a nutshell, it’s because there are not enough homes for sale to satisfy buyer demand. There are a lot more buyers than there are homes for sale, therefore buyers are battling over homes for.
How it Works To Sell A House
I listed a house last week, and it sold in 4 hours. The amazing part is I sold that house exactly one year and 4 months ago for $175,000 to this guy. We listed it for $190,000 and got an offer, a full price offer, in the first 4 hours. The guy made $14,000 in a year, minus the $10,800 he paid me and the other real estate agent to act as middlemen for him.
What does that tell you about this real estate market?
One thing it tells you is he could have easily sold that house himself and kept that $10,800. It’s easy to sell a house yourself.
Consumers are finding those houses on their own. Then they call their realtor and asking to see it.
Step by Step
In this section I will lay it out for you step-by-step.
When you sell a house, the first reaction is to call a real estate agent. The agent comes and meets with you for 45 minutes. They fill out some paperwork and list your house on the multiple listing service for $320,000. The Multiple Listing Servise, or MLS, is the proprietary service where Realtors list homes for sale.
The MLS then distributes that listing to all the different internet real estate sites like Zillow, Trulia, Realtor.com and dozens of others.
There’s someone out there that has decided they want to buy a home. They open up the internet, search Zillow and see the house that your real estate agent listed, yours. They call their real estate agent who writes an offer for them and sends that offer to your agent.
Your agent calls and tells you about it. You either accept it or send a counter offer. Eventually you come to an agreement with the buyer. You both sign a contract. 30 days later you go to closing and the real estate agents collects $19,200.
Wow, $19,200 that you could have had to spend, or save. Think about what you could do with $19,200.
This Market is Different
A seller can sell their home themselves in any market it doesn’t matter if it’s a seller’s market or buyer’s market.
What’s particular about this current real estate market and why it’s easy to sell a house? I’ll tell you that this is the most active, fast-moving Market I’ve seen in my 11-year career. In fact, before I became a realtor I was a project manager for residential builders for 20-plus years. So in all my 30-plus Years Around real estate I have never seen a market like this. For instance even the great housing bubble of the early 2000s was not this crazy.
All around the United States, the housing market is super low on inventory. Simple supply and demand metrics are driving prices up making homes sell fast. As a result people are putting their houses on the market and if they’re priced right and presentable they’re selling in one, two or maybe three days.
Realtors are making thousands and thousands of dollars to sell a house that sells itself. Home sellers could easily keep that money.
I’m not complaining, I’m one of them, I’m a real estate agent, and the money is good. I like it. But it’s unnecessary for you to be spending that money.
Sell your house yourself. Keep your money. Put it to better use.