If you've decided to sell or purchase a home or investment, you may be considering whether you should use a realtor.  These statitics from the National Association of Realtors will help make your decision easier.

1.  87% of all homes sold/purchased are done through a realtor.  Having a professional involved increases your perctentage of buyers and increases the likelihood that your home will sell faster.

2.  Home prices are based on your home's value including a commission.  If homes in your neighborhood similar to yours are selling for an average of $250,000, this price includes the cost of commission.  The For Sale by Owner homes are NOT included in the averages calculated by running a Comparative Market Analysis.  Your home is worth $250,000 when you use a realtor, and less when you decide to sell it on your own because buyers will expect a discount based on the fact that you are not paying a commission.

3.  Statistics from the National Association of Realtors (NAR) show that For Sale by Owners accept an average of 17% less than market price for their home.  Even when you consider the cost of a commission, you still earn more money when you invest in the services of a real estate professional.

4.  Statistics from NAR also show that discount brokers accept 17% less for homes on average (just like For Sale by Owners) when compared to full service brokerages.  The example below demonstrates your cost.  The * represents the average sell point of homes in Denver at this time--approximately 5% below list price.

                                                                Commission          NET GAIN
Home Price                           $300,000
Sold/Discount Broker (17%) $246,000    $2500 (flat rate)      $243,500
Sold/Full Service (5%*)        $285,500    $16559 (5.8%)       $268,941             

A full service broker WITH commission nets you an additional  $25,441

5.  The average For Sale by Owner home stays on the market approximately 80% longer than those sold using realtors.  If you need to sell your home on a timely schedule, it will sell faster when you use a realtor than without one four out of every five sales.

6.  Your realtor is required to submit your home to the Multiple Listing Service (MLS) within 48 hours of listing it.  This not only makes your property available to 87% of all buyers (% people who use realtors), but more websites (such as this one) give consumers direct access to the MLS.  Statistics show that 78% of all people who look for a home use the internet.  Your home will be available to all of these buyers  immediately through the most comprehensive search program available (the MLS).

7.  When you sign a seller or buyer agency, you are giving your realtor legal permission to work for you in every possible way he or she can.  They become a fiduciary to you.  The seller's agent will commit to getting the highest and best price for your house, and the buyer's agent will commit to helping you get the most aggressive price for your purchase.  They will also be able to negotiate on your behalf.  This agreement is terminable by either party, so you are not "stuck" with your realtor when you sign this agreement if things don't work out.  If your realtor doesn't include this clause in the agreement, request that it be added for your protection. 

8.  On the other hand, when you work with your broker as a "transaction" broker, the broker remains neutral and is not in a position to advise you on your decisions.  They can only offer an objective point of view.  Once again, this agreement should include a phrase to terminate by either party by written notice.