Benefits of Using a Realtor to Sell Your Houston TX Home

Home sellers in Houston, TX are often unsure whether or not they will benefit from hiring a real estate agent who might help to sell their house, but at the same time charge a hefty commission. Are realtors worth the expense?

In this article we will go over the reasons why a home seller could benefit from hiring an agent and likely net even more than he/she could have gotten if selling by owner despite having to pay an agent fee.

First, let’s take a look at this graph that shows the pros and cons of each selling method: FSBO (for sale by owner) and selling with an agent’s help. It’s an excerpt from our guide Closing Costs for Home Sellers [3 Options Compared] where we are discussing closing costs and other considerations in different scenarios of selling a house in the US market.

FSBO vs Realtor: Comparison of the Seller’s Expenses and Proceeds

In our Closing Costs Video Series we compared different ways of selling a house and gave examples of approximate closing costs calculations for each selling method.

These calculations were based on the 2018 Profile of Home Buyers and Sellers by the National Association of Realtors (NAR) and the professional experience of Kristina Morales—the licensed Realtor and the author of the series.

In this article we will choose a house recently sold in Houston, TX and make the calculations in a similar manner, but for the Houston real estate market so you can estimate what a sale would look like for your own property in the same local market. To better understand the approximate calculations provided below, please watch our Closing Costs Video Series mentioned above. Please note that the following calculations represent only an average correlation between a FSBO and agent-assisted sale. They may not apply to your particular situation and should not be taken as financial advice.

To better understand the approximate calculations provided below, please watch our Closing Costs Video Series mentioned above.

Please note that the following calculations represent only an average correlation between a FSBO and agent-assisted sale. They may not apply to your particular situation and should not be taken as financial advice.

Anticipated Costs and Proceeds from the Sale of a House in Houston, TX with an Agent

Listing on Zillow

Address: 6502 Sutter Park Ln, Houston, TX 77066

  • Type: Single family
  • Square footage: 2 549 sq ft
  • Bedrooms: 4
  • Bathrooms: 3
  • Selling Price $249,900

Approximate Closing Costs

  • Agent Commissions: $14,994 (6%)
  • Prorations $2,594
  • Title Fees $1,030
  • Escrow Fee $350
  • Home Warranty $479
  • Total Costs $19,447 (7.8% of the purchase price)

Net amount: $230,453

Time on the market: 1.5 months

Anticipated Costs and Proceeds if this House Was Sold by Owner

These are approximate calculations that show how the same house would likely sell if the owner didn’t hire a Houston real estate agent. We assume that the seller does not know the buyer before listing their property for sale, and that the buyer uses a buyer’s agent.

The estimated final selling price is based on the correlation of median numbers of agent-assisted and FSBO sales provided by the survey 2018 Profile of Home Buyers and Sellers by the National Association of Realtors:

  • Agent-assisted: $264,900
  • FSBO: $200,000 (24.4% less than agent-assisted)

Selling Price $187,400

Closing Costs

  • Buyer’s agent commissions $7,497 (3%)
  • Prorations $2,594
  • Title Fees $1,030
  • Escrow Fees $350
  • Home Warranty $479
  • Total Costs $11,950 (6.4% of the purchase price)

Net amount: $175,450

Time on the market: it depends on too many factors to assume. But according to 2018 Profile of Home Buyers and Sellers, on average, a FSBO property whose seller doesn’t know the buyer, sits on the market for a longer time than an agent-assisted home.

So hiring a real estate agent is a go-to method for selling your house quicker, unless you are selling it to Houston cash house buyers who help homeowners sell their property As Is in emergency or other distressed situations.

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