In a shifting real estate market influenced by new commission rules, many sellers are re-evaluating the necessity of real estate agents. Gabrielle Hillman, 30, recently navigated the sale of her Chicago condo without an agent, opting instead to work with a lawyer, a decision she believes saved her thousands in fees.
Historically, agent commissions have been around 5 to 6% of the sale price, deducted from the seller’s proceeds and split between the buyer’s and seller’s agents. However, recent changes in how these commissions are structured have given sellers like Hillman more options. “It’s definitely time-consuming,” she admitted, “but to save $30,000, we were happy to do it.”
To determine a fair asking price for her condo, Hillman researched recent sales of comparable units in her neighborhood. Instead of relying solely on an agent’s marketing expertise, she paid $100 to list her property on the multiple listing service (MLS), a database commonly used by agents to market homes.
When it came time to close the sale, Hillman retained a real estate attorney. She considered this choice crucial and significantly more economical than engaging an agent. “The couple of hundred dollars (for the attorney) is nothing compared to the couple of thousand you’d pay an agent,” she noted.
In the end, Hillman agreed to a commission for the buyer’s agent but successfully negotiated a lower fee than what was typically expected. Her condo sold within approximately three weeks, a timeline she found surprisingly efficient. “It was much easier than I anticipated,” she stated.
The trend of selling properties without an agent is not isolated. The New York Times recently featured Joanne Y. Cleaver, 66, who also sold her home independently through Facebook Marketplace and saved around $25,000 in real estate fees.
Despite the rising number of sellers choosing to forgo agents, many still rely on their expertise. Recent changes resulting from a $418 million settlement between home sellers and the National Association of Realtors (NAR) mean that MLS listings will no longer display the buyer’s agent commission upfront, a move designed to promote fairer negotiations. This shift is expected to enhance consumer negotiating power, which could encourage more individuals to consider selling without representation.
The sluggish housing market has already led to a decline in the number of agents, and further reductions in commissions could exacerbate this trend. Nevertheless, experts warn that the DIY approach can carry risks, particularly for those unfamiliar with real estate transactions.
Amanda Pendleton, Zillow’s home trends expert, argues that the current market conditions—characterized by high mortgage rates and limited inventory—make the guidance of real estate agents more vital than ever. “Homes that are priced and marketed correctly are selling quickly, while those that aren’t can linger for months,” she explained.
Data from the NAR reveals that only 7% of home sales last year were conducted without agents, marking an all-time low. Furthermore, FSBO (For Sale By Owner) properties typically sold for nearly $100,000 less than those represented by agents. Pendleton cautioned, “A mistake could cost you tens of thousands of dollars, so having an expert by your side is critical if you want to net top dollar.”
Good agents provide invaluable support throughout the selling process, offering marketing strategies and local market knowledge to negotiate favorable deals. A 2023 survey from Clever Real Estate indicated that sellers who employed agents reported greater satisfaction with their selling experience.
While some question the necessity of real estate agents, Doug Miller, a real estate attorney, advocates for their alternative. “There’s no barrier to entry to become a Realtor, resulting in many incompetent individuals in the field,” he asserted. Miller contends that sellers would benefit more from hiring an attorney specializing in residential real estate, emphasizing that attorneys are trained to manage conflicts of interest—something he claims agents are not equipped to do.
Despite the newfound independence sellers are experiencing, marketing remains a significant hurdle. Although platforms like Zillow have provided sellers with increased marketing options, FSBO listings often appear on less-trafficked sections of the site. Hillman and her roommate faced this challenge, noting that interest in their listing surged only after they added it to the MLS.
“The biggest obstacle to selling a house is marketing exposure,” Miller remarked, highlighting the Realtors’ role in creating and controlling the MLS database. He hopes the recent rule changes will facilitate greater access for sellers bypassing agents altogether and recommends that sellers consider working with companies like the one Hillman used to gain MLS access. He also underscored the necessity of professional-quality photos to enhance listings—an expense Hillman found worthwhile.
Having gained valuable insights from her recent sale, Hillman is now more confident about future real estate endeavors. “I just bought another condo,” she revealed. “When I eventually sell that one, I won’t use a Realtor.”
As the landscape of real estate continues to evolve, the essential role of agents remains a contentious topic, prompting sellers to weigh their options carefully in pursuit of the best possible outcome.
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