If I sell my house myself, I will save thousands of dollars, right? Maybe not! Many homeowners believe that to maximize their profits on a home sale, they should sell it themselves. They feel that by selling on their own, they will save money by avoiding the real estate brokerage fee. Almost 20% of all homes for sale last year were by the owners. However, only 13% actually sold by owners. In addition, over half of those who did sell their home by themselves said they were not sure they saved any money and would definitely use and agent the next time they bought or sold. Why were so many people unhappy with the results they achieved by selling their own home?
Many FSBO’s explain that with the time, paperwork, liability, and everyday inconveniences involved were not worth the amount of money they saved in commissions. For others, the amount of profit was disappointing. By the time they figured the amount of additional fees paid to outside consultants, inspectors, appraisers, title lawyers, advertising and marketing cost, they would have been better off having paid the broker’s fee which includes many of those charges upfront.
FACT: Over the past years, marketing and selling a home has become much more complicated. Even though there are more homes being sold over all, the percentage of homes sold-by owner has fallen. Selling a home requires an in-depth and detailed understanding of real estate market, finding the best qualified motivated buyers, and many other steps that bring about a successful sale. If the property is priced too high, it will develop a reputation as being a problem property. If the property is priced too low, you could lose a great amount of money. Some For-Sale-By-Owners discover that they lost money as a result of poor marketing or wrong decisions.
One of the keys to selling a home effectively is accessibility. Many homes sit on the market because the owner is unavailable to show the property when the buyer wishes to see it.Are you prepared to deal with buyers that perceive For-Sale-By-Owners as targets for low offers with an opportunity to save money themselves? One of the great challenges of selling you own home is screening unqualified buyers and bargain hunting homebuyers. Settling for a low bid is almost always worse that paying a sales commission.
There are two primary reasons why homeowners consider selling on their own!
1. Hopes of saving the commission.
2. They did not know a good agent.
FACT: realtors will generally sell houses for 5-8% more than owners themselves. In our case I have been able to sell for 14% more than the owners were asking originally.
Why Selling By-Owner is difficult.
You only have four ways to attract buyers.
1. Classified advertising
2. Open House
3. For-Sale-Signs
4. Internet
For prospective buyers that preview your house, how do you plan to obtain their names and phone numbers? How do you plan to follow up with them? What will their impressions of you be when you call them? How will calling them affect your negotiating position?
You have but one property to show. I have many homes to show and can match my buyers to our properties. Do you fully understand all the legal steps in selling a home? Many home sales fail due to incomplete paperwork, lack of inspections or not meeting your STATE DISCLOSURE LAWS that owners are required to make when selling on their own. Are you completely knowledgeable on all these requirements? If not, it would be very wise to select a real estate professional.
WHERE DO THE BEST BUYERS COME FROM?
· 40% come from REALTOR’S company name or sales person contact.
· 18% come from our company’s from sale signs.
· 18% are referred by our relocation service.
· 15 % locate a property and/or agent on the internet.
· 4% respond to an open house but purchase a different property.
· 1% buy a property advertised in the newspaper.
· 2% bought for a combination of reasons.
· Please note: very few buyers buy as a result of an open house or newspaper ad.
Perhaps you’ve considered listing with a lower commission broker. But are you any better off? Did you know that offering a full commission is part of selling your house for “TOP DOLLAR”? Lower commissions brokers promise the same services as other brokers, but do they help you to achieve your goal of selling your house for “TOP DOLLAR”?
FACT: Sales associates often refuse to show houses offering reduced commissions, which drive your sales price down.
FACT: Homes listed by lower commission brokers normally stay on the market longer and sell at a lower price. You net less.
FACT: If the buyer knows the commission is discounted, he/she has more leverage to negotiate a lower price. You lose money again. Offering a full commission assures more showings, a faster sale and a higher price, which nets you more money. Choose your Agent wisely. Any agent will show enthusiasm and will want to list your house for sale but choose your agent based upon:
A Professionalism
B. Honesty
C. Loyalty
D. Integrity
E. Ability to use technology to market your house world wide to buyers 24/7.
F. Ability to offer a professional Marketing plan that will get your house sold at the highest possible price.
Working with a full time professional real estate agent is a must. I can get your house sold quickly at TOP DOLLAR and help you find a new home.
|