Real Estate Agents know the current market. They have an unbiased opinion of the house. Home owners are too emotional when it comes to pricing/showing.
Real Estate Agents have access to Multiple Listing Services that helps market the property.
RE Agents know about local zoning, state laws and the procedures that you have to go through to sell a home (transfer taxes, fire codes, time lines to get inspections & appraisals, etc).
Most homeowners don't have the time to commit to selling their home. They have jobs and families. A RE Agent's job is to bring a seller and buyer together to complete a transaction.
As for a buyer many people don't have the experience to go out and find the houses themselves and it is a process that can end with a lot of red tape. You need to deal with lawyers, inspectors, appraisers and others. RE agents have access to many listing sites that homeowners don't have access to. They can also find out information about the house that a buyer would have a harder time finding out.
Many think that RE agents make a lot of money off of a sale but it isn't really the case. In the current market we are getting 5% off the sale of a property. The properties are on the market for 6+ months. If you have a buyer's agent and a listing agent then you split the commission 50/50. After that 50% split you split your commission with your broker. In the end you will get 25% of the commission. You are also responsible for paying both sides of your social security and all of your business expenses.
If you have a $200,000 house you would make $2500 and if the house took 4-6 months to sell it isn't that much.
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