You hate to see bad things happen to good people, and perhaps that's why it has taken so long for me to write this article. It happened to someone I know. But it's a story that needs to be told to protect those that I make it a point of protecting; you.
You may have heard me speak of the challenges that face those who sell their homes "for sale by owner." My neighbor decided to do that. They had been approached by another neighbor in the community interested in buying their property. They must have felt that bringing in a Realtor would be a waste of money. So they didn't, and I want you to know the three things they gave up, and how that impacted the sale. You may think this has something to do with them not hiring me to represent them, but you'll see in a moment that it has no bearing.
1. The first thing they gave up was representation. At first they believed that there wouldn't be a Realtor involved at all. But along the way they agreed to the buyers bringing in their Realtor. The result being that they were unrepresented while they paid for the buyers to be represented. Their plan to save money at this point was cut in half.
And when the appraisal came in at less than asking price, they had no one to go to bat for them. They got an unpleasant (downright rude) appraiser and felt stuck with the result. Had they been represented, it likely would not have ended that way
2. As a result of poor representation, they gave up a huge chunk of money. They received $119 a square foot (SF) while the average rate in the neighborhood was $130. They accepted an offer of $283,000 when the house should have been listed and sold for about $300,000. In fact, the house next to them, more than 200 SF smaller, sold for $289,000 just weeks after their closing. The difference was a great Realtor (me).
3. Lastly, these sellers have a long-time friend who is their Realtor (not me). Their FSBO approach kept their friend from earning a paycheck. Had they employed their friend and got just the averageprice for the home, they would have realized a $24,000 increase. After their Realtor earned his commission, they would have netted an additional $15,000.
Many people think that they can afford to be without a Realtor. I would tell you they're wrong. And I think my old neighbors would tell you the same thing. TALK to TOP.
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