There is a lot of heated debate over this question. Many sellers feel that real estate commissions are too high. On a $300,000 home, those commissions can add up to $15,000 or more. In theory, you can save thousands of dollars if you sell your own home.

But if your buyer uses an agent, you won’t save as much. And if you're like many home owners, you simply may not have the time or skills to sell your own home. That's why there can be definite advantages to using an agent. Make sure you know both sides of the story before you make up your mind.

What happens when you use an agent

Selling a home is a complex and costly process. To make it easier, most people use a real estate agent.

Why use an agent?

1. A licensed agent brings knowledge, skills and resources to the table. They may have a network of other agents and contacts who can help them sell your home. They also understand the issues you may run into, and know how to handle them. They advise. You decide.
2. Agents offer convenience. They handle almost every aspect of the sale for you. This includes helping you price your home, advertise your listing and show your home. They will negotiate on your behalf. They will also help you complete a purchase agreement and work with your lawyer to complete the transfer of your property to your buyer.
3. You won't have any separate sales costs to pay. These include the cost of signs, listings and other forms of advertising. Instead, you pay a sales commission that equals five or six per cent of your home's price. In general, half of the commission goes to the agent that represents you. The other half goes to the agent that brings you a buyer.
4. An agent may help you get a higher price for your home. In the United States, a 2010 survey by the National Association of Realtors® (NAR) found that the median price for homes sold with the help of a real estate agent was higher than for those without an agent. This could offset the cost of paying the agent commissions.
   Note, however, that a 2009 study by economists at Northwestern University came to a different conclusion. The researchers stressed that their findings cannot be generalized beyond the market they studied in Wisconsin. But their data showed that sellers who joined a for-sale-by-owner Web site got at least as much for their homes as sellers who used an agent and the Multiple Listing Service (MLS) - a popular online database that people search to find homes for sale.
5. An agent may sell your home faster. The Northwestern study found that houses sold through an agent and MLS were more likely to sell faster. It may be that private sellers are more willing to wait for a better price. Or it may be that an agent has a better network – including other agents – to help them sell.

What happens when you sell your own home

Of course, you no longer have to use an agent to sell your home. Thanks to the Internet, the real estate world in Canada is changing. These changes have made it a lot easier to sell your own home. From 20 to 25 per cent of all home sales in Canada are now private sales. Another name for this type of sale is 'For Sale By Owner,' or 'FSBO.'

There are many online companies ready to help you with your FSBO sale. You can even advertise your home yourself through the Multiple Listing Service (MLS) - a popular online database that people search to find homes for sale. Before, to list on MLS you had to hire an agent and pay the full sales commission. Now, for a small fee, you can list your private sale on MLS for a flat fee.

With a FSBO sale, you will do everything an agent would do - minus, of course, the training, experience and network of contacts that a licensed agent would have. For that reason, it's easier to sell your own home in a hot real estate market. When home sales drag, it can be harder to find a buyer yourself.

Why sell your own home?

1. You can do most of what an agent does yourself – with the help of an online FSBO company. These companies will help you list and sell your home at a fraction of the cost of hiring an agent. They can provide tips, tools and other resources to help you price your home, advertise, show your home and negotiate the final sale. They can also provide template contracts you can use, but you will still need a real estate lawyer to finalize the deal.
2. Your total sales costs are lower. Many of these companies claim that FSBO sellers make as much as 6 per cent more this way. That's because you can avoid paying agents their real estate commissions. On a $300,000 home, the commission can add up to $15,000 or more. Just remember: many private sellers often end up paying a commission to the buyer’s agent, usually about 2.5 per cent. On top of that, you may pay fees to work with an FSBO company and to list your home with MLS. So claims that you will save five to six per cent may be overstated.
3. You may feel you have more control over the price. Some sellers feel agents want to set a lower price so the home will sell faster. Why? Critics say that selling a home for $10,000 less than similar homes doesn't change an agent’s commission very much - but it can be a big deal to the homeowner. If you sell your own home, you can price it the way you want. You can also change the price whenever you want. You don't have to get an agent to agree with you.
4. You may feel you have more control over the whole sales process. You are making all the decisions related to the sale of the property, so you may feel more comfortable with the process. Every aspect of the sale is in your hands. Want more local advertising? It's up to you to take out another ad in your local paper. Want another open house? Advertise and put the coffee on.

Of course, there are also some drawbacks to selling your own home. It's not a good approach for everyone. In fact, many FSBO sellers give up after a time. They end up hiring an agent to sell their home. Why?

After you try it, you may find out that you don’t have all the skills and experience you need to sell a home. It can also take longer than with an agent – in part because fewer buyers are willing to buy direct from an owner.

In the end, it's up to you to decide if the cost savings outweigh the time and effort you will have to invest in selling your home. To learn more, read Does it pay to sell your own home? Sonya and Sergei’s story