Lehhko.com is Search Engine Powered Real Estate Listings. We offer a unique and comprehensive online marketing platform that provides our users the ability to post, promote, analyze and communicate with prospective parties.
The Real Estate Choice
There are really two choices in the world of selling real estate, being: to hire an agent, or not hire an agent. That is the proverbial question.
The Merriam-Webster dictionary defines “agent” as one who is authorized to act for or in the place of another. So to boil it down, when you hire a real estate agent you are basically hiring someone to be you and act in your interests.
There are a bunch of different arrangements that agents offer, but generally speaking, if you decide to simply hire a full-service real estate agent, you are looking at anywhere from 3-6% commissions on the sale price of your home depending on your location.
The other option is to forego the agency relationship and to take matters into your own hands by selling your home on your own, otherwise known as for sale by owner.
Typical Real Estate Agent Services
There can be great value in hiring someone to take this responsibility on for you depending on your circumstances. For instance, your agent has an obligation to act in your best interests and will typically provide you with the following services, among a few others:
- Home staging advice
- Pricing Suggestions
- Measurements and detail descriptions for marketing
- Marketing Services including online, multiple listing service (the MLS) or possibly print
- Install lawn sign
- Buyer access, viewings and open houses
- Negotiation with prospective buyer
If you hire a full service real estate agent to take these things on and your home is say, $500,000, it’s likely that between the listing realtor and the buyer’s realtor your are going to pay anywhere from $15,000 to $30,000 for these services. Additionally after all of this is said and done you will need to hire the services of a lawyer to complete the conveyancing transaction and to get the deal done. This will likely cost you around $1000.
So all told on a $500,000 house you are going to spend anywhere from $16,000 to $31,000 to sell your house, plus tax, depending on the commission structure.
Based on your personal circumstances, you will need to ask yourself whether or not this is value for your money.
One of the major reasons why many people hire real estate agents forego selling their home on their own is a fear that they will not have the required skill to organize and market their property by themselves.
Lehhko’s objective is to alleviate much of this pain by offering tools designed to help owners through the process on their own. Lehhko’s approach is unique and effective approach and it’s accessible to regular people.
Lehhko’s main features include:
- An online marketplace that allows users to post their listings and use it as a marketing hub for online promotion;
- Online promotion tools through the use of search engines and other means. This allows users to actively control the flow of traffic to their individual listings; and
- Analytics that show the performance of a user’s efforts and the traffic to their site.
Breakdown of Potential Costs Selling a $500,000 Home
We have broken down the activities and potential costs of selling a home using a real estate agent vs. using Lehhko in the table below.
We have assumed that there is a good possibility that a potential buyer may come to a Lehhko seller through a buyer’s agent. Well, hey that’s ok. There is a common practice in understanding that if someone brings you a customer and they actually buy your property, that the buyer’s agent will be compensated even though you are selling on your own.
|Real Estate Agent||Lehhko Style|
|Home staging advice||Possibly||Interior Design Consultant – $500|
|Pricing Suggestions – Appraiser||Included||Appraiser – $500|
|Photography||Range of Possibilities||Professional Photos – $500|
|Measurements and detail descriptions for marketing||Included||Self – $0|
|Marketing Services||Realtor Website, mls, and possibly print included||Lehhko
$0 – $1000
|Install lawn sign||Included||Self – $50|
|Buyer access, viewings, and open houses||Included||Self – $0|
|Negotiation with prospective buyer||Included||Use your lawyer that you were going to pay anyway.|
|Transaction||Lawyer – $1000||Lawyer – $1000|
|Buyer’s Agent||50% of Commission||Possible Buyer’s Agent Commission|
|Total||$20,000+||$2,500 – $10,000|
While the quantifiable benefit of selling your home without a real estate agent is that you will save money, some of the added and subjective benefits of using the Lehhko platform include an increased sense of control over your own selling experience, and an added level of transparency with respect to the effectiveness of your efforts.
If you have confidence you will be able to find ways to stage, price, market and negotiate a sale, then hey, Lehhko is perfect for you.
Watch this video for more!