Can a realtor sell their own home, in the United States?

If you’re a real estate professional, the question might have crossed your mind: can a realtor sell their own home? The short answer is yes! Real estate agents don’t just help others buy or sell properties; they can also list and sell their own homes. However, there are specific considerations, challenges, and advantages that come with this unique situation. We will explore all of these below. 

Since agents are already licensed and familiar with the home-buying process, selling their own property might seem like a straightforward task. However, like any other real estate transaction, there are legal and ethical factors to consider. For instance, agents must adhere to their state’s real estate licensing laws and the National Association of Realtors (NAR) code of ethics if they are a member. Let’s read more on this. 

What are the benefits of selling your own property as an agent?

Saving on real estate commissions

One of the biggest perks for real estate agents selling their property is avoiding listing agent fees. Typically, a seller pays about 5% to 6% of the sale price in real estate commissions, split between the listing agent and the buyer’s agent. By acting as their own listing agent, they can save thousands of dollars.

Full control over the sale

Real estate professionals have the expertise to market and price their homes accurately. They don’t have to rely on another agent to make decisions or communicate with potential buyers.

Access to the Multiple Listing Service (MLS)

The MLS is the primary tool used by real estate agents to share property information with other agents and potential buyers. Since agents have access to the MLS, they can easily list their property and ensure it gets maximum exposure. 

In-depth market knowledge

As someone deeply involved in the real estate market, agents know the local trends, buyer behavior, and strategies to maximize their sale price.

What are the challenges agents face when selling their personal property?

There are legal and ethical considerations

Real estate agents must clearly disclose their status as a licensed professional to all potential buyers. This is typically done by including “Owner/Agent” or a similar phrase in the property’s listing and any contracts. Transparency is key to avoiding conflicts of interest or accusations of misrepresentation.

Additionally, the NAR’s code of ethics requires realtors to act with integrity and fairness. When an agent is selling their own home, they need to ensure they’re not taking advantage of their expertise in a way that disadvantages buyers.

Objectivity can be difficult

Selling your own property comes with an emotional attachment, which can cloud judgment. Pricing the home too high or being inflexible during negotiations can hinder the sale.

There are disclosure requirements

Real estate agents are held to higher standards when disclosing information about their property. They must be upfront about their ownership and any issues with the home, ensuring they comply with the code of ethics and legal obligations.

One needs to factor in errors and omissions insurance

Most agents have errors and omissions insurance, which protects them from lawsuits related to mistakes or negligence in their real estate practice. This may somehow discourage potential home buyers. 

There is a perception of bias

Buyers may question the integrity of the transaction. To avoid this, it’s important for agents to be transparent, honest, and professional throughout the process.

Should an agent use another agent to sell their home?

While agents are fully capable of selling their own property, some choose to hire a fellow real estate broker or listing agent. Why? Because having an external agent can bring objectivity to the process and make negotiations less emotionally charged.

For example, a buyer’s agent might negotiate more aggressively than an agent selling their own home would. By stepping aside and letting another professional take the reins, agents can sometimes achieve a better outcome.

What are the steps to successfully sell your home as an agent?

Start with a plan: Selling a home requires careful planning. Outline your strategy, including how you’ll market the property, set a competitive sale price, and handle showings.

Leverage your expertise: Use your knowledge to your advantage. Highlight the property’s best features and emphasize its value in the listing.

Stay objective: Treat your home sale like you would any other client’s property. Avoid letting emotions interfere with pricing or negotiations.

Work with a buyer’s agent: Even if you’re listing the home yourself, cooperating with buyer’s agents can broaden your pool of potential buyers.

Follow all disclosure laws: Ensure you’re upfront about your ownership and any issues with the property.

Consider errors and omissions insurance: Verify that your insurance policy covers you when selling your own property.

Key takeaways

Real estate agents have every right when it comes to buying or selling their own homes. Moreover, it can be a rewarding experience. However, it requires a balance of professionalism, transparency, and emotional detachment. Whether you’re planning to sell your own home or hire an agent to sell it for you, being informed about the process is essential.

Remember, real estate agents have an advantage in their market knowledge, access to resources like the MLS, and expertise in pricing and negotiations. At the same time, they must navigate potential challenges such as disclosure requirements, ethical considerations, and the risk of emotional decision-making.

By following best practices and adhering to ethical guidelines, real estate agents can successfully manage the unique experience of selling their own property. And, maybe even save some money in the process!

Written by Ramona Sinha. May 2, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.