So you've decided to sell your home on your own.
For whatever reason, you don't want to pay commission to a professional real estate agent and are convinced that by word of mouth with family and friends around the neighborhood and maybe a couple of ads in the local Facebook blog shop, you'll be able to save some money.
Talk about a false economy. DIY selling, for want of a better name, still goes on and maybe once in a while someone manages to sell their home by themselves. The odds, however, are most definitely stacked against that happening and for a few very good reasons.
Today we'd like to tell you about some the of the typical problems you'll encounter by going solo:
Your pricing may be way off - A pro agent will know area pricing as well as the back of his/her hand. There are a variety of reasons for this, including access to the local Multiple Listing Service (MLS) and to recent selling prices of homes similar to yours in the area. He/she will also be totally on the pulse of market trends and demand levels and will also have a very experienced eye with which to judge the merits of your home with in comparison with others in the same category. Yes, you can look at generic websites and get some idea of a price, but these are notorious for being inaccurate almost the entire time. Put another way, your pricing could be so wide of the mark that, even if you sold your home on your own, you might have been financially better off paying the agent's commission, compared with the reduced price you have unnecessarily agreed to...
Who are your buyers? - A good realtor will carry out intensive discussions with buyers, identifying their needs and, crucially, encouraging them to seek pre-approval for a home loan, which will of course identify their true buying potential and ability to purchase a home they are interested in. Go it alone and you really have zero control who looks at your home and no worthwhile knowledge of their buying power.
The sale is much more likely to fall through - Because your potential buyers have not been properly vetted, you could easily find yourself in the situation of accepting an offer from them, only to discover that they cannot qualify for a home loan. This not only wastes your time, but also risks you losing the chance to sell to others, while your home is apparently off the market.
A huge loss of advertising reach - A professional realtor will promote your home across his/her website, social networking sites and literally dozens of other websites across the internet. This is the sort of reach that is only possible by the agent's membership of the local MLS, which, to cut a long story short, automates the publicity of your home on a global scale. At Everest Peak Realty we go the extra mile to ensure your home stands out to buyers by only using top quality professional photography and producing a video tour of your home. Do you really have the time and skill to do all this yourself?
No established contact network - Full time realtors spend every day prospecting for sellers and buyers, using their network of past clients and other contacts that they have built up. One of their most important connections is with their fellow colleagues in the area, especially important when it comes to identifying qualified buyers interested in homes like yours. Without these connections at your fingertips, you simply cannot hope to reach the maximum number of potential buyers.
Staging difficulties - The presentation, or staging, of your home is not as simple as doing some spring cleaning of the carpets, work surfaces and curtains. The best realtors are experts in knowing what buyers are looking for in a home and will provide you with in-depth advice and assistance in presenting the home to its very best advantage. Everything from fine tuning curb appeal when your viewers turn up at your home, to layout of furniture and advice on what needs to be done to eliminate negatives such as tired decor. Don't underestimate the impact correct staging can have not only on buyer perception, but also what they are prepared to offer for your home. A lack of experience in this key area can be crucial to selling the home in the quickest time for the best price.
Is the offer too little? - Let's assume that you've actually received an offer for your self-marketed home. It has come in below your asking price. You will be in an exceptionally poor situation in evaluating that offer. We talked earlier about pricing your home correctly and you simply won't have the data at your fingertips to know if that offer is a reasonable and realistic one or, in fact, way, way south of what similar homes in your area are selling for at the moment. Your realtor is absolutely invaluable at this point, as he/she is able to speak from a position of experience and knowledge in terms of whether the price is right or woefully below what you might achieve.
Closing could turn into a nightmare - One of the key roles of a realtor is to carefully guide the seller through all the processes of closing the sale. Mistakes here can turn out to be very expensive and the ramifications can last long into the future. Given how infrequently most of us move in our lives, legislation affecting the sale of homes changes all the time and, as a solo seller with no real experience of the real estate industry, you are taking big risks by having no idea whether you are doing things properly or not. Your lack of knowledge can also be a major contributor to the sale falling through, as you will have no one by your side who knows how to handle problems when they sometimes come up and how to properly mediate the process so that the sale continues to a successful conclusion.
If you've been trying to sell your own home, talk to us today. We'll show you exactly what added value a dedicated, professional real estate company can add to your home sale.