If you're thinking of selling a Maine property, let us know what you have. We'll examine your area and send you market information based on data in the Maine Statewide MLS – all for free, and with no obligation!
Did you know that the only way a commission would actually be 6–7% is if you own your property "free and clear?" Since commissions are only taken from your equity position, when you owe on a mortgage, the commission percentage is unbelievably higher!
See for yourself: in the example below, you can see how much of a seller's equity a traditional "listing agent" takes away at closing! Just enter a sale price, mortgage remaining, and a commission percentage and hit "Calculate".
| By Owner | Agent Listed @ 6% |
|
| Appraised Value | $250,000 | $250,000 |
| Asking Price | $254,900 | $259,900 |
| Sale Price | $244,900 | $249,900 |
| Minus Expenses & Commissions |
-$1,500 | -$14,970 |
| Seller's Net | $243,400 | $234,930 |
| Difference | $8,470 | |
Assumptions:
- By Owner & Agent agree that a reasonable sale price is $250,000 – through either a professional appraiser or market analysis by an agent.
- By Owner chooses to be more price-competitive. To get your listing, an Agent promises to get you a higher price. But, it doesn't work, and a month or so later he wants to lower the price! It's a waste of time and perhaps he has already lost a ready and willing customer.
- Both By Owner & Agent accept a Selling Price $10,000 less than the original Asking Price.
- By Owner expenses include advertising, and maybe some legal work.
Difference between By Owner and Agents: $8,470.
Substitute any new numbers in this strategy you wish, but rest assured that an Agent will always be paid a huge commission, and your incentive to sell it yourself will only get stronger.
Imagine you invested 40 hours of effort into selling your home yourself (which is more than usual). A savings of $8,470 divided by 40 hours = $211.75 per hour. That's a good wage to pay yourself!