One of the most important questions you may yourself as a realtor is “can a realtor sell their own home?“.
So you’re ready to sell your home and are planning your expenses. Half of the real estate commission (5.8% of the home sale) goes to the listing agent.
You can practically become your own agent and save some cash if you sell your home, right?
Can a realtor sell their own home?
Yes, a REALTOR® can sell their own home. A code of ethics was created by the National Association of REALTORS® (NAR), the biggest real estate association in America, to support real estate professionals in their work.
According to recent statistics by “For Sale By Owner” only a fraction of homeowners sold their homes by themselves in 2023.
But when you can do something, does that mean you should?
Of course not! Selling your own home is a heavy burden on your shoulder and comes with significant risks. Many FSBO (For Sale By Owner) sellers make less profit than those who use a real estate agent.
If you don’t know what to do, don’t worry because we’ll explore why you should and shouldn’t be your own agent in this post to help you in this journey. First, let’s discuss the benefits of FSBO.
Advantages of Being Your Own Realtor
Being your own realtor comes with a number of benefits, including:
1. Keeping Commission in Your Pocket
This is the most obvious reason for you to handle the situation independently. When you enlist a real estate agent to sell your expensive property, you’re likely to pay a 5-figure commission. Even splitting the commission between all parties can still cost a fortune.
Besides, it’s tough to find a proper client anyway. Who’s a better client than yourself? Because you already sense the urgency to sell your home. You don’t need any persuasion, and you’ll never disappoint yourself.
2. More Control
When you represent yourself, you can enjoy the freedom of being independent. For example, let’s say you’re looking to purchase a property and task an agent to get it done. Your agent goes through viewing the property, making an offer, etc.
Your agent may not be as agile or focused as you because they’re busy as a beaver and have other clients to help no matter how much they try. Hence, you and your agent should understand each other’s schedules and problems.
Additionally, no one cares more than you about your property. You’ll likely put as much time and effort as needed to get the deal done, certainly more than anybody else.
Now, let’s focus on the disadvantages of being your own agent, enabling you to carefully weigh both sides and safely make a sound decision.
Drawbacks of Being Your Own Realtor
There are some drawbacks to being your own realtor, including:
1. Separating Your Taste From Your Buyers’ Is Difficult
You probably think you have a real gem in your hand because you’ve spent a lot of money renovating and decorating your home. But, it’s not you who defines beauty, and the buyer may disagree with you on that.
Taste-specific decoration can discourage buyers. These decorations often distract clients who cannot picture their belongings in your home. Especially when using:
- Family photos on shelves
- Controversial artworks
- Decorations for religious holidays
- Withered plants
- Old window treatments
- Outdated carpeting
Since real estate agents know the current trends and counteract many potential buyers every day, they know better how to sell your home. They can even advise how to decorate your home to attract more potential buyers.
2. The Problem of Emotional Attachment
Let’s face it; there are many sweet childhood memories in your mind about your home that can make your job hard as a negotiator. Many FSBO sellers show emotional reactions during negotiation. Studies reveal that emotions affect our valuations. When you’re emotionally attached to your property, you can’t put a price on it. After all, no one can put a price on memories.
You won’t make these emotional mistakes when enlisting an agent.
in selling their own property, a real estate licensee must
real estate agent selling own home disclosure
FAQs
Can a real estate agent sell their own home?
Yes, a real estate agent or broker who is properly licensed may sell their own house. However, regardless of your degree of experience, buying and selling real estate takes a lot of time and patience. The good news is that when it comes to buying and selling their own property, REALTORS® have a few options.
Can a real estate agent sell a house without a broker?
Although agents are authorized salespeople, they are not brokers. A real estate agent must work for an employing broker; they are not permitted to act alone.
In other words, no, a real estate agent is unable to function independently of a broker, at least not until they have obtained a broker’s license.
A professional license allows real estate agents to assist clients in the purchase, sale, and rental of real estate. They must be employed by a broker or brokerage firm that sponsors them.
Can a realtor buy their own home?
A real estate agent or broker who is properly licensed may buy or sell their own house.
However, regardless of your degree of experience, buying and selling real estate takes a lot of time and patience.
The good news is that when it comes to buying and selling their own property, REALTORS® have a few options.
Purchasing one’s own listing is not against the law or a violation of the agent’s license. Many states demand that the agent tell you that they have a license to act as an agent.
When realtors buy their own home, how does commission work?
Depending on the business and what is stated in the independent contractor agreement. Normally, you can receive payment as you would in a typical transaction or you can work with the seller to reduce the price and/or combine it with seller concessions in exchange for waiving your commission.
Your listing agreement specifies the commission. Your selling agency and the purchasers agent will share the commission (herself)
Can you be your own real estate agent and get commission?
In order to sell a home, a seller is not currently required by law to work with a real estate agent.
Because it saves them money on commissions, many sellers work as their own agents.
Agents are paid a commission for their services in practically every real estate transaction; this commission is typically paid by the seller. The commissions are typically divided equally between the purchasing and selling agents and range from 4-6 percent.
Can a licensed real estate agent represent themselves in a purchase offer?
Yes, you can represent yourself while purchasing or selling real estate for yourself if you are a licensed agent, provided you declare this upfront in the transaction.
However, earning your real estate license isn’t the only step in the process.
So, it depends on whether you are acting on your own behalf to acquire or sell your own property.
Can you sell yourself as property?
Selling your own home is definitely a possibility. Some folks could even find it enjoyable. There is a lot of labor involved, though. It is a significant financial and legal transaction, so take care to conduct the entire procedure correctly.
Conclusion
Can a Realtor sell their own home? Yes, as long as they uphold their moral duties and tell prospective buyers that they are the property’s owner. But can they balance the demands of their other clients with all the feelings and tasks that come with selling their house? That could be a little more challenging, but it’s still very feasible.
To sum up, if you’re a real estate agent and you want to buy or sell a piece of real estate, a house, or other property, you may. The most challenging duty may be in this phase of the procedure because there is no legal basis for it to be forbidden, but your broker must be aware of it.
Final Verdict on Can a Realtor Sell Their Own Home
A licensed real estate agent can typically act in their own behalf when buying or selling a property. All parties engaged must be well informed, and any potential conflicts of interest must be avoided. Reviewing the State Laws and speaking with the real estate broker are crucial.
We reviewed the advantages and disadvantages of being your own realtor in this post. Obviously, you’re free to sell your home without a realtor. However, you’d be wise to also consider the risks and responsibilities.