In our current financial environment, people are always looking for ways to reduce their costs. One of the ways that home owners think they can save money is by selling their home themselves.
This may be true if the Buyer fails to consider how the real estate market works. When a Seller hires a Brokerage to sell their house, they agree to pay the Brokerage a percentage of the sale price in commission fees. This means that the real estate commission is built into the sale price of the home, and the Seller receives the NET proceeds after the commission is deducted from the price paid for the home. So in reality, the Buyer is actually the one who pays the commission.
A Seller who does not use the services of a Brokerage to sell their house expects that the buyer will still pay the same price and in turn the Seller will pocket the commission for themselves, increasing their NET proceeds.
In many cases, Buyers who are looking at 'Private Sales' probably overpay for the home as the selling price should be reduced to reflect the reduction in commission. If, however, the Buyer hires a Brokerage to represent them, their Realtor has access to information about recent sales in the area and can help the Buyer to understand the best price to offer for the home.
Your Realtor also works for you and represents your best interests, bringing to the table their knowledge of the current market, experience in negotiations, legal protection and many other benefits that make the process less stressful.