How do you decide your representation?

Services for Real Estate Pros with Homes By Owner Mi

When it is time to sell how do you decide which way to go and who with?  For some it is so simple they choose the traditional methods of selling while others the less traditional ways.

There is no right or wrong...just options.  The traditional method is a real estate brokerage and Realtor.  Some of the less traditional ways is the For Sale By Owner option.  We can evaluate the difference but that would be stating the obvious.  The real difference is commission.  You can talk about marketing plans, slide shows, brochures, yard signs, advertising, 800 numbers, paperwork, title companies and all the rest but now each have the same or similar types of options. 

The next issue is experience, not all licensed Realtors are experienced.  Not all sellers are capable of representing themselves either.  So you have to evaluate your situation.  Can you represent yourself?  Will you fill out the paperwork correctly?  That is the number one thing wrong according to title companies.  The paperwork is filled out wrong.  The other area that seems to be a problem is the disclosures.  Michigan has very specific disclosure requirements and there are some required federal forms as well.

The number one driving force for most seller to choose to act as a For Sale By Owner is the commission savings.  For the most part you can save just shy of 50% by selling on your own.  You will have to offer a buyers agent some commission to bring buyers.  You will not be able to list your property on the MlS without some type of commission offering to buyer agents.

Many companies have tried to help sellers by holding workshops or seminars to add to their knowledge base.  The one element that a Realtor has is training.  They do have book training, unless they are experienced you may have as much negotiation training.  So the bottom line is evaluating your situation and make a decision based on your needs and requirements.


Comments (6)

Ira Freireich
Best Buyer's Broker Realty - Valley Stream, NY
There are many options out there.  Both buyers and sellers should be encouraged to learn more before either buying or selling.  Thanks for your take.
Dec 09, 2007 03:09 PM
Selling Your Way
Homes By Owner Mi - Lansing, MI
Hi Ira, thanks for your comments.
Dec 09, 2007 03:22 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Could not find the name, so sorry, have to go without it.

I think the disclosures are the least of the Seller's concerns. If the Seller sells himself, he is not bound by many of these disclosure requirements. The Closing agent or the attorney makes sure they have the needed documentation to close.

As for doing things yourself, I would be cautious. Example from another industry: restaurants. 81% of them fail in the first 2 years. The main reason is that it seems so easy. We all need to eat, and I am so good at cooking something, and my wife is the best cook, and the net thing you know, they are closing the doors. Everyone knows that.

But real estate is no better. It may look very easy, and if you have gone through that once, it looks even easier. Well, let me say only that practically on each closing that I had during these years, there was one or another element of surprise.   

I worked for two years with an investor, who was a practicing attorney, and he was doing his own closings, he had CPA, so he knew  tax ramifications better than many others, and he had Real Estate Broker license. He was buying himself, and I could not compete with his mobility.

But when it comes to selling, we beat him by such a margin, that he felt ashamed. I remember at the beginning, he bought oceanfront land for $550K, I think. He put a sign, and advertised in the local paper and he was asking $690K. Then he called me and said he was going to Virgin Islands, and if I wanted, he could give me a 30-day listing. He asked me how much I was planning to sell it for, and I told him that I wanted to put it for $849,900. He laughed at me. 15 days later he had an full price cash offer on his table, with the contingency to close in 90 days. They closed in 90 days. Since then he was selling through real estate licensees, and was making more money, than trying to sell himself. Not saving 3-6%, but making way -way more money.

And what always surprised me, he would listen to me very carefully, not jumping with "I am an attorney" stuff. And he was doing it for a very simple reason: you can't be the smartest person in the world. Why not use someone's expertise. It was a double guarantee for him.

If as a Seller you have the knowledge of a real estate attorney, understanding of other issues, and have a real estate license and practiced REAL real estate, then go ahead. I still think that I could do a better job for you, but at least you are not going to screw it completely.

Dec 09, 2007 04:19 PM
Selling Your Way
Homes By Owner Mi - Lansing, MI
Hi Jon, as a real estate broker I completely understand...each state has different disclosure laws.  I found the Florida purchase agreement a foreign object compared to the Michigan PA.  Way to go always feels good when you do it right.  Thanks for the comments.
Dec 10, 2007 12:53 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
I think most sellers look for competence, rapport and trust.  If you have anyone one of these areas lacking your will probably not get the listing.  Nice post.
Dec 10, 2007 11:11 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain!

    Much has changed since your last visit to ActiveRain.  I encourage you to take another look at the website. 

    Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!

Dec 28, 2015 12:38 PM