Decisions, Decisions, Decisions!
Getting to what you really want?
What is your true objective? While the education I provide in my Home Seller's Guide eBook will help you sell your house no matter how you decide to sell or with whom, your decisions begin long before you go public with your home on the market. If you are like most homeowners, you have decided its time for a change and that change is going to cost you money, so your objective is you want the maximum funds from your current property to facilitate your needs. How will you best achieve your objective? Lets look and a fundamental question, Can I sell my home with an inexpensive kit?
Homeowners who attempt to sell without using a real estate agent usually do so in order to save the commission. They believe that to sell without an agent is to net more money from the sale. For-Sale-By-Owner kits look like a whopping saving in theory but the irony is that statistics show the median price of FSBO (for-sale-by-owner) homes was 15.4 percent lower than the median price for home sales that were negotiated by trained professional real estate representatives. I want to show you why that process will cost you three times the commission rate, or $45,000.00 lost out of your pocket on the average three hundred thousand dollar home.
Is "For Sale By Owner" Worth The Risk?
The primary risk of selling without professional representation is that with lack of market knowledge and negotiating practice or without access to multitude of buyers you simply get convinced to sell too low even though your intention is the opposite. FSBO's tend to only attract bargain hunter buyers. FSBO kit signs say, “no commission” so like FSBO sellers, FSBO buyers want to save your money in their pocket by paying less. The FSBO seller hopes to save the cost of the commission; but so does the buyer, who will win by selling at a lower price? Unless the asking price is clearly below market value, a FSBO buyer is likely to think he can negotiate an even lower price because there are no agents to obstruct his haggling position based on no commission to be paid.
Other factors contributing to the lower FSBO sale price is that nine percent of FSBO sales are sold to a buyer who knew and contacted the seller directly so many sell without even seeing the open market. Most of these are almost gifted to a relative, friend or neighbour where by friendship or family association you simply feel obliged to give away part of your net worth as a sweetheart deal. You either give away the farm or emotions run high when the FSBO seller has to negotiate face to face with their buyer friend, neighbour or relative that you do. A professional real estate representative can easily and tactfully be your “bad cop” to protect your life’s net worth investment from friendlies.
Another problem for FSBO sellers is unsubstantiated pricing coupled with poor marketing reach that allows you to sit on the market week after week with no possible sale or inadvertently leave money on the table by selling too low to any first buyer who breaks the silence to express serious interest. If you don't expose the property well at the right price, you'll never know if you could have sold for more on the open market.
Another risk of selling without an agent is that many FSBO transactions never come to a close. Some FSBO deals fall apart because the buyers who are indeed excited and willing to buy are not properly qualified for financing before they enter into a purchase contract. Good real estate agents qualify and get buyers pre-approved for financing before spending considerable resources on finding them their dream home so this ensures that you only see qualified offers.
Another reason why many FSBO deals collapse is that there's no experienced person working after the offer to purchase is signed in order to move the transaction along through the next steps and negotiate to resolve problems when they arise. These are not legal lawyer questions but often involves other contractual conditions of sale implications, with no knowledgeable professional who has the been there and done that knowledge to overcome such challenges.
If we were to follow the trail of failed for-sale-by-owners that end up listing with a real estate agent, the top reasons would be misunderstanding the complexity of the task, lack of market exposure, and being inexperienced and ill-prepared to complete their sale. Also, selling your home is like selling your personal pride, so you can’t be objective in negotiations which undermines your success.
Very often FSBO sellers simply dislike paying commission from a belief that it's lost or wasted money. This is often from a misperception that the commission is simply the agent's income and way too high for the little work they seem to do. However, just consider that the commission is not just an agent's income. Consider, the commission is first the advertising budget, for advertising to get buyers flowing all year long and only after your house sells does that budget expense get paid back to the agent. Further consider that the agent has paid up-front for all market and advertising promotion from MLS listing fees to signs to newspaper and flyer printing so that only once all the bills and fees are paid does the agent recover expenses and receive the balance of funds left over as salary regardless of how much it took to sell any given house.
For-Sale-By-Owner kits capitalize on misrepresentation of the real estate market and are designed to make money for the kit promoter, not the home sellers. While it is easy to look over any occupation and make assumptions of simplicity, there is a great deal involved in real estate sales than meets the eye and these kits do not come close to providing more than the bare necessities for the sale of a property. This very book provides more than most kits but certainly does not provide the ability to equal the time and money spent in the advertising expenditure of a full time real estate agent! The total sum of all advertising and promotion monies spent by a real estate representative annually is what brings interested, qualified, house seeking buyers to them every week, like moths to a lamp. Subsequently, agents have a history of satisfied clients who always refer their friends who are buying a home. Realtors spend thousands of advertising dollars annually to have the buyers come to them, but a kit only provides this book and a lawn sign.
Having maximum exposure in the real estate market is the way to ensure that you find a buyer in a reasonable time and sell for the best possible price. Multiple offers, bidding wars, and higher sale prices are the result of exposure to multiple buyers, not simply to a friend or neighbour or those who drive by to see your independent sign. If you have ever gambled at the casino, consider the odds of sitting on your own Open House week after week, and ultimately having a random passerby see your home and find it is “exactly” the home they have been dreaming about? No, they are most likely to have a voyeurs look, note some decorating ideas and a have nice chat with you before they continue their search, so this is where Real Estate Agents meet even more buyers to suit all the homes they know about! Realtors are where the buyers go!
Most educated real estate sellers, however, won't want to waste their every weekend, delay their desire to move by a slowed process of finding a buyer and then give up a significant profit just to avoid having to pay an agent for the costs of marketing their home. So, with the internet developing more informed consumers the number of sellers choosing to sell without an agent has decreased in recent years.
When is the best time to sell?
How do you get the best price?
What preparations should I make?
When you're armed with the right information, and an experienced realty professional, you'll be closer to reaching your objective - selling your home fast, and for the best possible price.
Of course, you will also want the advantage of using the best name in Real Estate! I moved my business to ReMax in 2008 because I became convinced that the ReMax team offered powerful advantages. Annual statistics prove year after year, that with over 400 representatives on the team, almost 50% of all real estate transactions in Brampton has ReMax involvement. Can you see how the power of the Re/Max team will help you get more for your house than any other company? Nobody sells more real estate in Brampton than ReMax.
Couple that with my negotiating strengths, staging expertise and a tenacious ethic of hard work and diligence and you have a formula for great success. I will meet with you for a free consult with no cost or obligation to explain my home marketing plan fully. I will show you further differences in how you can get top dollar, fast, when selling your house with my marketing plan. To help me prepare for our meeting, you can tell me about your home before I visit.
Call me, so we can chat about your home specifically!
You must be satisfied with my professional assistance and representation or you will owe me nothing. There is never any hidden cost or obligation ~ and no pressure ~ ever!! When you are ready to sell, I am ready to serve. Until then, you may consider me your real estate answer girl! Ask about the no strings, "Guaranteed Service" promise.
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