Sell Your Own Home? Use A Realtor?
Occasionally, you will see "For Sale By Owner" signs, and there are home owners that think selling their own home will not only save money, but believe this gives them an advantage over other sellers that have their home listed by a reputable Real Estate sales professional. Remember this is a very important, stressful and legally complicated process… Most professional Real Estate Sales representatives will not attempt selling their own properties, but will enlist the services of a trusted Real Estate Agent, allowing them to be at arms length to the process. Consider the following points before you decide to Sell Your Own Home.
1. You are limiting your exposure to potential buyers (less than 10% of what a strategic marketing plan utilized by a professional real estate broker will generate) this could theoretically mean your home will take ten to fifteen times longer to sell.
2. it is statistical fact that the longer a home is on the market the lower the selling price is. Reason? Most buyers think that if a home has not sold after a certain period of time... "What must be wrong with this home?"
3. The selling/buying process really begins ONCE the buyer has left your home. Many Sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offers will start to flow, unfortunately that is a myth. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. Real Estate professionals are trained on how to overcome buyers remorse--a very common occurrence.
4. Many Buyers feel they have to start very low with their first offer and work their way from there. Real Estate agents are trained in how to deal with these situations. Homeowners can take these "lowball" offers personally and could jeopardize a potential sale.
5. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to gain Optimum Market Value meaning the best price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
6. Most buyers are not comfortable negotiating or even talking directly with sellers and therefore will avoid FSBO properties.
7. Lack of negotiating training and nexperience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
8. The majority of qualified buyers are working with experienced real estate professionals.
9. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
10. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
11. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
12. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
13. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
14. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
15. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
CENTURY 21 Infinity Realty Inc., Brokerage*