A real estate broker acts as an intermediary between sellers and buyers of real estate, helping to initiate and facilitate transactions. In the US, brokers and their sales teams assist sellers in promoting and selling their properties, often negotiating for the highest possible price and the best terms. To receive compensation or a commission for these services, one must obtain a license as a real estate broker.
While unlicensed real estate activity is illegal, buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed. In some states, lawyers can handle real estate sales and earn fees and commissions without needing a broker’s license. Many buyers and sellers feel comfortable managing the process of marketing their homes and negotiating deals themselves.
These unrepresented sellers and buyers do much of the same work as licensed brokers. Unrepresented sellers frequently approach listing agents for properties they are interested in. If a seller can negotiate for the “buyer’s agent share” to be given back to them, the listing agent will still typically handle the tasks the seller may not be experienced in.
When dealing directly with buyers, sellers can negotiate deals and haggle over the best price and payment methods without having to share profits with brokers or agents. This can save substantial amounts in commission fees. However, sellers who decide to sell their properties on their own need to be prepared to handle all necessary tasks. This includes preparing advertising materials, organizing open houses, and managing inquiries.
Advertising is often the largest expense in listing a property, and sellers should be ready to cover these costs. Holding an open house can be an effective and inexpensive way to showcase a property. Sellers must be available to answer questions and schedule showings for prospective buyers. Overall, selling a home directly to buyers can be financially rewarding but requires a significant investment of time and effort.