By Ron Barnes
Associate Broker - Prudential Georgia Realty
President - Pickens County Board of Realtors®
The real estate market is in the dumpster, but you want to sell your home.
There are three ways I'm aware of to sell real estate. You can market the property with a full service real estate broker. You can choose one of the "discount brokers" that offer limited assistance for a smaller fee. They mostly provide a sign, a limited internet presence, and some marketing material, but the seller is responsible for all showing and negotiation, which is where full service agents provide a large portion of their value. The remaining choice would be to plop a sign in the yard and do it yourself.
Having recently attended a continuing education class sponsored by the Pickens County Board of Realtors®, I think those in the classroom were reminded of the awesome responsibility we have in representing our clients. The class is saddled with the exciting title of "Contract Exhibits and Addendums", but I can assure you it is not boring to learn more about how many details go into a successful real estate transaction. For example, let's say you take your home off the market in anticipation of a sale. What happens when you get to the closing and find out the buyer does not have the funds to complete the transaction? There is a piece of paper to prevent that from happening. Did you know a lender can back out of a loan commitment at the last minute and potentially leave the seller with a reduced sale price? Would you rather pay an agent six percent commission to help and protect you, or give up ten percent of your home's value to a predatory buyer? There are many hazards that can come into play in any given transaction.
Do I have a problem with someone who tries to sell there own property? Heck no! I even offer them free advice, because it's very hard to succeed. However, I can't imagine why anyone, in a depressed market when the sharks are circling anything that looks like a meal, would want to navigate those waters alone. Make no mistake, if you are a seller right now, buyers will try to take advantage of you if they can.
With a limited service agent, you get little or no help with problems associated with contracts and negotiation. They may provide the contract forms, but you're pretty well on your own afterward. If you have a problem, don't expect them to get involved on your behalf. Do I have a problem with discount brokers? Heck no! Just know what to expect in return for your discount.
So let us assume that you have decided to use a full service broker. What should you know about them? Ask questions. What is their internet exposure? How long have they been in the business? Did they have a relevant background before entering the field that might be an advantage to you? Do they have references? Hopefully, they will be members of the Board of Realtors®, which means they will be bound by the Code of Ethics. Nonmembers are bound only by license law.
Your home is likely your biggest asset. Are you going to allow cousin Bubbles, who just got into the business, to handle its sale for you? Would you let her take out your appendix if she told you she stayed at a Holiday Inn? Do I have a problem with your cousin Bubbles? Heck no! It's your money and we live in a free country, so you can burn it or buy stocks if that is what you think is in your best interest. However, there are literally thousands of agents (and brokerage firms) who got into real estate over the last couple of years, or even the last few months. Many have already gotten out when they realized how hard it is to remain successful. Make sure you choose a professional committed to the business. Then listen to what they say.
This is the worst real estate market in many years if not ever, and probably the worst economic conditions in most of our lifetimes. Selling real estate is much harder than most people realize, so think carefully before you try it without help unless you are very, very good.
Ron Barnes can be reached at 678-520-6648. Prudential Georgia Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential FinancialCompany. Equal Housing Opportunity. Statistics are taken from Trendgraphics.
Comments(1)