As a Realtor I will admit that I am biased and feel that most people need the assistance of a Realtor when selling their home. However, I also strongly feel that there are many people who are perfectly capable of selling their home on their own without the assistance of a Realtor so please do not view this article as "preachy".
Recently I read "Why Sell For Sale By Owner" at www.homesbyowner.com and have to admit that I received a good chuckle. The web site answered this frequently asked question listing the following 7 reasons. I have listed my responses after each point.
1. Less Hassle and Frustration:
a. You don't have to leave the house when showing: the purpose of leaving the house during showings has proven psychological benefits to the buyer that actually make them more likely to purchase your home. They are able to relax and openly express their feelings in front of their Realtor. For example: the buyer does not like the wood paneling on the walls and comments on it to their Realtor. As a seasoned professional I would recommend options for the client to either remove or lessen the appearance of the paneling and re-direct them to items that they like about the home. If the homeowner is not trained to direct conversations, the buyer may interpret the same response as a sign of desperation and low ball the seller or not ever make it past the walls and therefore not see anything they like about the home.
b. You can know when people are coming: The majority of agents will notify you in advance of showings. However, with the inventory as high as it is, if someone happened to be in the neighborhood and wants to take a look at your home I suggest you show it as it is a buyer's market and they just may be your buyer!
c. Your negotiation can be done in minutes: This was perhaps my favorite. Negotiation is a skill, an art form and yes, a special talent. Every person alive has the ability to purchase but not everyone has the ability to purchase for the best price every person has the ability to sell but not everyone has the ability to sell for the highest price. One of the primary principals of negation requires time. Two cowboys in a shootout rarely turn around and start shooting immediately; they stare at each other eye to eye and watch for a twitch or a sign.
2. You Can "Sell" Your Home Better Than Anyone Else: Are you kidding me! You may be able to sell your rental property on your own but the house that you live in? One of two things will happen (I know this from personal experience): 1) you love your home so much and every time you see the sunshine yellow paint in your child's room you see their face. Therefore, it is obvious that your home is worth $10K more than market value 2) you hate the neighbor and your dog is buried in the back yard. You can't get out of the home fast enough and therefore your home is worth $10K below market value. When option one occurs your feelings become hurt because you don't understand why no one will see what you see in your home. When option two occurs the buyer can read that negative vibe that you portray and does not buy for fear of what is not being said.
3. You Are In Control: It is true that you have the freedom to advertise where and how you want to, schedule showings, etc. However, there is a reason that the system is designed as it is. In a buyers market, it is all about the buyer and preparing your home in a way that a buyer will want to purchase it. If you force buyers to play by your rules they simply will not bother to look. Agents also know where to effectively market your home to maximize buyers many of which you may not even be aware of. Ultimately, you spend a great deal of money in areas that will not attract the RIGHT buyer.
4. More Money In Your Pocket: Yes, it is true, the concept of the total commission can be daunting. However, I don't think I need to say much more than what was said in 1c. and 3. You only save the money if you negotiate the best possible price, sell it in a reasonable time frame (saving monthly mortgage payments) and don't advertise in the wrong places. Additionally, did you know that the National Association's Profile of Buyers and Sellers shows that sellers who sell on their own typically sell for 15% less than those properties that are listed?
5. You Can Sell Faster: Unless you determine the fair market value of your home and reduce the price by at least 7-8% you are not likely to sell your home faster. You see, buyers are knowledgeable about commissions as well and expect to save money by not using a Realtor. Therefore, they are naturally going to expect a reduced price. Extremely savvy buyers also know how to make your home to appear to have more issues than it actually does or more serious repairs than they actually do therefore reducing your price even lower. It is also likely that you are lacking the marketing exposure and we all know that multiple offers bring in a higher price. Interestingly, multiple offers still exist in a buyer's market.
6. Less Uncertainty: If your Realtor is doing their job you should not have any feelings of uncertainty. I send each of my clients written weekly updates on the market (as well as regular direct conversations). These updates include any market changes, what buyers as well as other agents have said about their home, suggestions for improvement, etc. Again, going back to the negotiation topic in 1c. it is not about what the buyers and their agents say, it is about what they don't say and knowing how to read between the lines.
7. Easy To Do: Ok, I promise this is the last time I will say this. Anyone can purchase something the question is did they purchase it for the right price and anyone can sell something the question is did they sell it for the right price. Negotiation, negotiation, negotiation...
As I said, I am certain that there are many people who are completely capable of selling their home on their own and if you are one of them I truly wish you the best of luck. However, make sure you honestly asses your personal negotiation skills, personal attachment to your home, and pricing strategy. If you decide that it may be more than you want to deal with, call me and we can sit down and talk about the best strategy to get your home sold at top dollar!
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