Thoughts for Thursday:
If you are considering listing your home for sale, but aren't sure about the Private Sale vs. the Real Estate Professional route....here are just a few things you may want to keep in mind.
6 Things the For-Sale-By-Owner Companies Don't Want You To Know!
1. It Will Cost You Money Even If Your Home Doesn't Sell!
When you list your home with one of these companies, they will ask you for a flat fee upfront. I've seen their packages range from $1,500-3,000 in order to have a sign installed, feature sheets made, pricing analysis and have your listing put on the MLS system. Regardless if your home sells or not, you are out of pocket thousands of dollars. When you work with a Realtor, you only pay a service fee once your home is sold and you are happy with the results. The risk is on your agent to pay for marketing and expenses without knowing if the home will sell during your contract. No Sale = No Fees!
2. You Pay Them So You Can Do All The Work!
Since these companies are not licenced brokerages, the cannot represent their "clients" in any capacity. You will receive no advice on price negotiations or how to formulate a contract that is in your best interests, they won't show the property for you or handle buyer inquiries (which is one of the most important parts of getting a home sold - qualifying the buyer or showing them that your home stands out from the rest), they don't handle any paperwork, source contractors to fix issues that arise in an inspection, host open houses....NOTHING! Are you getting excited to add more items to your plate?
3. They Put Your Home On MLS But No One Will Find It!
If you pay for the premium package, some of these companies will list your home on the MLS system. What they don't tell you is that even though your property is listed in Hamilton, they will list it on the Ottawa Real Estate Board or another out of town participating Board so that local agents won't have access to this information and will miss sending it to their buyer clients. Such a good deal isn't it?
4. Many (if not most) of the Privately Sold Homes Are Sold By Realtors!
Buyers in today's market are very educated and understand the importance of having a professional Realtor represent them. Someone who will educate them when a property is over priced, how to spot hidden defects or things that could be an issue down the road, and best of all it is free for a Buyer to have someone working for them. So homes that are being sold privately are often being sold to a Buyer who has a Realtor looking out for them and who is negotiating the deal for them while they sit back and relax knowing they are in good hands. Think the seller is feeling the same thing?
5. Private Sales Send a Negative Vibe to Buyers!
Have you ever gone to view a private sale as a Buyer? If so, then you know it can be extremely uncomfortable. Often the Seller feels the need to follow you around, pointing out ever detail and upgrade so proudly and the buyer feels like they cannot look at the home freely with the owner following behind so closely. It is even more difficult to negotiate with them (if they don't tell you their bottom line right off the bat - which I'm sorry to say happens more times then I can count). There is no 3rd party involved that they trust to help them see the true market value of their home. Then there is always the question in the buyer's mind - why didn't they use a Realtor? Do they have something to hide? Do they want too much money? If they are trying to cut costs now, what else did they cut corners/costs with in the home?
6. You Know What You Have Saved...But Do You Know What You May Have Lost?
I always say, private sellers know what they have when they get an offer, but do they know what they've lost without full exposure? Maybe one buyer brings an offer and they take it...but how many buyers and how many offers could they have received if they had exposed their home to the maximum number of Buyers and Realtors? Could they have negotiated a better price with an experienced Realtor in their corner? Could they have avoided many fallen through offers with Pre-Qualified Buyers or a Database of contacts that could remedy any issue that a home inspection could have bought to light and caused the buyer to walk away or re-negotiate?
You can go through a real estate transaction on your own, but you can also have a great real estate experience that will leave you feeling like you made the best decisions along the way without hesitation, concern or worse....without making mistakes.
Call me today and I can show you what our Real Estate Experience looks like and why we have a program that will work for you!
Office: 905--545-1188 or Direct (YES DIRECT ANYTIME DAY OR NIGHT) 905-308-6328
Have a Great Long Weekend Everyone!