Real estate has evolved too much and in today’s competitive real estate market everybody wants to save money in selling and buying. Also, real estate is a very serious business and one wrong decision can plunge your life into an unending crevice. But, on the other hand, one smart move in real estate can be a life-time jackpot. No matter how intelligent or smart you are but you too are prone to making mistakes in life. Though we learn from our mistakes but real estate is not the area where we can afford to make any stupid mistake. In order to save your precious time and money, I’m going to discuss here some pro and cons of selling, as a dumb and the benefits of smart selling.
Due to TMI (Too Much Information) on the web we are most of the time carried away by it and are even unable to analyze the details of the information. It’s also true that the available information is sometimes so mind boggling that two sources have contradictory information. It becomes difficult for the average homeowner or home buyer to analyze and make an intelligent decision.
Let’s talk about sellers, who are the catalyst of real estate transaction, because once they decide to sell, then only buying and other related activities like, repairs, staging, hiring a Realtor, Mortgage broker, home inspectors & lawyers starts. It’s always advisable to hire an accredited professional for a smooth transaction. You know that your home is one of your biggest investments of life. All your family members and future financial life depend upon it. If it is so important then why would you cut corners on hiring a professional realtor?
Firstly, though there’s no harm in selling the property yourself as FSBO (For sale by owner) but just think about the risks involved and escalated chances of mistakes. The self-made or a dollar store ‘for sale’ sign in your front yard itself diminishes the chances of smart buyers working with a professional realtor. Moreover, these unimpressive, generic yard sign kills the marketability of your property. It promotes the bad image of the property and seller itself. Another worse thing self-sellers do is putting the small ‘for sale’ at almost all the corners of nearby intersections, street light posts, mail boxes, parks, grocery stores and bus stands in the neighborhood. Don’t forget that those who are going to see your poor for sale signs, they have already chosen that neighborhood and are living there. Those who are going to see your poor ‘for sale’ signs, they have already chosen that neighborhood to live. So-called smart seller’s poor marketing strategy doesn’t bring any positive result but as the self-made signs start fading so does the interest of potential buyers.
Secondly according to surveys the chances of selling FSBO’s are less than 1% and that too with lots of pre or post sale problems. Selling a house is not a gimmick, how can you gamble with your most important financial entity? More than 90% of the FSBO’s are sold by professional realtors. It’s also learnt that during FSBO’s open houses or showings some unimaginable crimes does happen, because there're no criteria or tools with FSBO’s to qualify a potential buyer, while on the other hand Realtors do qualify their buyer clients before any showing.
Thirdly, most FSBO’s will prepare the property according to their own taste and likings, which again limits the selling prospects. Some sellers even try to stage the house them self and they end up overloading the property with inappropriate and not so cool paintings, furniture etc, All this nullify the real beauty of their property.
Fourthly one of the common mistakes among FSBO’s is pricing and mostly they tend to price it illogically without any practical analysis or they price according to neighborhood sold listings. One must not forget that price is the most important factor in the selling and only an experienced and professional Realtor can price it right after CMA (Comparative market analysis) of recent sales in the area.
Lastly selling your house yourself is just like performing an open air operation on your body yourself, without knowing the outcomes and then ending up in pain and sufferings. If you don’t want do it to yourself then please don’t do it to your house. Let the professional Realtor handle the sale and make it an easy job for you.
The biggest misconception among FSBO’s is ‘saving money’ but in most of the cases they end up getting underpaid, and when they learn it later, it becomes a lifelong repentance for them. The reason behind it is, either they list their house too high and when don’t sell they sell it at throwaway price or they list it too low and can’t negotiate with potential buyers to pay them more and again sell it an offered price. Pricing, marketing, negotiating and marketing are invaluable skills a seasoned Realtor acquire over the period of time and through continuous training. A Realtor can save your time and get you the real value of your house, and give you can live your life uninterrupted. The sale of a house involves a lot of legal contracts and paper trail to follow from conditions and clauses to financial institutions and lawyers. A typical FSBO might have sold just one or two properties in entire life, but a Realtor sells many more in just a few months. Above all experience and education does count. Don’t become a piece of mockery in your neighborhood with an unsold house but become a smart seller with a professional Realtor on your side and have a peace of mind.
Happy Home Selling!
Major Nagra, M.A., M.Ed
Realtor ®, ABR, SRS
Century 21 New Age Realty Inc. Brokerage
5618 Tenth Line W, Unit # 9
Mississauga, Ontario, L5M 7L9