Top Options For Selling Your Home In The Greater Nashville Area
FEBRUARY 10, 2019
Thinking of selling your house? Luckily, there are more options for homeowners today than ever before. After all, most people move because of a life event such as a new job, new addition to the family, death in the family or divorce. One thing to keep in mind is that there is no ‘one size fits all’ way to sell your home. Like most things in life, your decision depends on your priorities and goals.
The traditional way of selling a home
For most Nashville residents looking to sell their home, they’ll likely contact their local Realtor. Local Realtors can offer a good experience, however, there tends to be a wide range in the level of service you’ll receive depending on which firm you choose as well as the individual agent in charge of listing your home. This is because most traditional real estate brokerages operate as a franchise model which means each one is individually owned. For example, if you previously sold your house using Keller Williams in Chicago, it doesn’t mean you will receive the same level of service if you decide to list your home with a local Keller Williams franchise.
Advantages of listing with a traditional agent
The benefit of listing your home with a traditional realty company like Village, Keller Williams, Remax, or Parks Realty is that you will be assigned a listing agent who will walk you through the process from start to finish. Your agent will help determine a list price based on homes that have recently sold in your neighborhood, they will schedule and pay for professional listing photos, put your home on the market (MLS), help you negotiate when you receive an offer, and guide you through the closing process.
Disadvantages of listing with a traditional agent
The main disadvantage of listing with a traditional agent comes down to the fees they charge. While all real estate commissions are negotiable by law, most traditional agents charge a total of 6% of the sales price of your home. Of this 6% fee, 3% goes to the listing agent and 3% is offered to a Buyer’s Agent to incentivize them to bring their clients to your home. These fees are paid at closing and only if your home sells.
Another disadvantage of using a traditional agent is the varying level of service you receive. Traditional realty companies typically operate under a franchise model, which means each one is individually owned resulting in every office doing things a bit differently. For example, some offices or agents may offer professional listing photos with drone footage and 3D virtual tours while others may opt for the cheapest photographer they can find.
Is there an alternative to the 6% model?
An alternative to the traditional model is called a flat-fee listing service. This is the type of model we offer at Felix Homes.
At Felix, our main goal is to lower the fees you pay when you sell your home all while providing the same level of service that traditional agents offer. This is what we mean by “First Class Service at Economy Prices.” Instead of charging a 6% commission, we simply charge a $3,500 flat-fee as our listing fee plus we still recommend that you offer a buyer’s agent a 3% commission to incentivize them to bring their clients to your listing. Better yet, we’ll completely waive our $3,500 listing fee for Veterans or families with an active duty military member. The end result is that most of our clients save over $10,000 in Realtor commissions and similar to traditional agents, our flat-fee is paid at closing and only if your home sells.
PRO TIP: The question you should ask yourself is, would you rather pay ($3,500+3%) or (3%+3%)?
What about the level of service for the flat-fee model?
Contrary to what most traditional Realtors may tell you, just because you’re paying less in Realtor commissions with Felix Homes doesn’t mean you should expect a sub-par service. At Felix Homes, we’ll provide you with a dedicated Realtor who will be your primary point of contact throughout the process. In fact, many of our Felix Agents previously worked at traditional realty companies such as Benchmark Realty and Compass Real Estate.
Your dedicated Felix Agent will help price your home using recent sales data. You can request an instant online value report here or schedule a free in-person home valuation here. Once your home’s value is determined, we’ll provide a free staging consultation where we hire an interior design consultant to arrange your furniture optimally to prepare for the all important listings photos. At Felix Homes, we can’t stress how important it is to take great listings photos which is why we do not spare any expense when it comes to photography. All of our listing photos are taken by professional photographers and are enhanced to make sure your house looks its best. After all, over 90% of home buyers start their home search online.
Once your photos are taken, we’ll list your home on the MLS and develop a custom digital marketing strategy specific to your listing. Your listing will be featured on Zillow, Realtor.com, and over 70+ other real estate websites. At Felix, we understand the importance of social media marketing which is why we’ll promote your listing on Facebook, Instagram and LinkedIn to reach the estimated 52% of first time homebuyers. These first time homebuyers are between the ages of 27-35 and spend most of their free time on social media which is why we emphasize this advertising channel in our marketing strategy. Your home will also be featured in our weekly email newsletter which is sent to thousands of interested buyers.
Once we receive an offer, we’ll negotiate the best deal and we’ll be by your side throughout the closing process. This is where you will really see the main difference of working with Felix Homes as opposed to a traditional realty company as your net proceeds will be $15,000 higher on average due to our flat-fee business model.
Are there options that don’t involve an agent?
Another option for families in need of moving quickly is Opendoor, a company that conveniently offers to buy your home directly albeit at a hefty discount. As a homeowner, you can fill out information about your home on Opendoor’s website and assuming they are interested in buying your house, you can start the closing process in as little as seven days. The disadvantage of selling to Opendoor is that it is a very expensive option. On average, Opendoor offers to buy your house at a 15%-17% discount to fair market value which is why we only recommend this option for people who need to move in a hurry.
Finally, a third option is selling your home “For Sale By Owner”, which allows you to avoid paying listing agent commission fees altogether, but makes you navigate the home selling process without the guidance of an experienced Realtor. Additionally, homes that are listed FSBO still typically offer a buyer’s agent a 3% commission so they are not at a disadvantage compared to other homes on the market.