Are you looking to sell privately? Before you do, THINK about the bigger picture, not just commission percentages off the bat. Here are 10 clear disadvantages to privately selling your home:
1) Going in Blind - You may actually sell your property for less than it is worth if you sell privately at a lower selling price than you would with a Real Estate Brokerage because you are lacking access to current and up-to date sales data which is always changing.You are navigating in the market, blind and in the dark. How will you know you got the best price?
2) Negotiation Power Loss – With so much money involved, it is difficult not to get emotional and personally tied up in selling your home which you have lived in for so many years. Negotiation power can actually favour a buyer when the seller is negotiating with emotional involvement.
3) Lack of Access to Buyers - With well over 40,000 realtors in the GTA, your chances are a lot higher to find more buyers in a specific period of time with a hired realtor.
4) Increased Risk – not knowing whether your buyers are seriously ready to buy a home is a risk. Realtors qualify buyers to make sure they have appropriate financing and buying knowledge to facilitate a smooth closing.
5) Slow Traffic. Time is Money - Every month your property is on the market, you are losing money and time. You want to hire a Realtor to sell your property as fast as you can.
6) Little Access to Marketing- Some selling agents will pay for marketing services right off the bat to get you started along with providing their expertise and services. These could include: Photography, professionally written MLS listings, website exposure, newspaper ads, website ad, virtual tours, and homestaging.
7) Missed Opportunity Cost – The right buyer could have slipped right under your fingertips during your private “sale” trial period. More opportunity is the chance for higher dollar offers with ideal conditions meeting your preferences.
8) Paperwork Headache – Most owners may not understand or realize the amount of attention to paperwork that is needed in a real estate transaction. Any mistakes and errors on legalities will hurt a transaction on both sides ending a deal. With real estate representation, the chances of error in paperwork and miscommunication of its terms are much lower.
9) Lack of Offers – Without an offer being made on your property, it hurts the desirability of the property and perception of it. A realtor can help you build a positive desirability of your property and is willing to do anything to help you get an offer.
10) BUSY, BUSY, TOO BUSY – Most owners can get so busy with their full time jobs or families to deal with selling a property and fail to realize the amount of work that needs to be put in. It can be too much to take when other duties are thrown at you all at once. Needless to say, a realtor can be your most timely and trusted advisor to get your home sold with less stress and effort taken by you.