Why Attempting To Sell Your Own Home Can Be A Recipe For Disaster
Have you ever noticed how long obviously home made “For Sale” signs stay on front lawns and also how they are almost invariably replaced by a more professional looking one?
Some people think it's a smart idea to avoid paying commission to a professional real estate agent, totally convinced that by word of mouth with family and friends around the neighborhood and maybe a couple of ads on social networks, they'll be able to sell their home and save some money in the process.
Talk about a false economy. "DIY" selling still happens and, maybe every so often, someone actually gets lucky and manages to sell their home by themselves. The reality is that the odds are stacked against this method working and for a few very good reasons.
A pro agent will know area home pricing intimately well. He/she has access to the local Multiple Listing Service (MLS) and to recent selling prices of homes similar to yours in the area. The agent will also have up to the minute knowledge of current market trends and demand levels and will also have a very experienced eye with which to judge the merits of your home in comparison with others in the same category. As we've said before in this blog, you can look at generic real estate websites and get some idea of a price or your home, but these are almost invariably inaccurate. Your own pricing could be so wide of the mark that, even if you eventually manage to sell, you would have been better off paying the agent's commission, compared with the reduced price you have unnecessarily agreed to...
A good realtor conducts an extensive interview with potential buyers, accurately identifying their needs and, vitally, encouraging them to seek pre-approval for a home loan, which will of course identify their true buying ability. Go it alone and you really have zero control over who looks at your home and no worthwhile knowledge of their buying power.
Because your potential buyers have not been properly vetted, you could easily find yourself in the situation of accepting an offer from them, only to discover that they cannot qualify for the required home loan. This wastes your time and, perhaps even more importantly, also risks you losing the chance to sell to others, while your home is apparently off the market.
A professional realtor will promote your home across his/her website, social networking sites and literally dozens of other websites across the internet. This is the sort of reach that is only possible by the agent's membership of the local multiple listing service (MLS) which essentially automates the publicity of your home on a global scale. At The Nicoli Group we go the extra mile to ensure your home stands out to buyers by only using top quality professional photography. It's worth asking yourself if you actually have the time, resources and skill to do all this by yourself!
Full time realtors spend every day prospecting for sellers and buyers, using their network of past clients and other contacts that they have built up over the years. One of their most important connections is with their fellow colleagues in the area, especially when it comes to rapidly identifying currently qualified buyers interested in homes like yours. Without these connections at your fingertips, you simply cannot hope to reach the maximum number of potential buyers. Also consider that, at The Nicoli Group, unique to our industry, we have four full time agents who prospect for buyers a minimum of three hours per day and speak to an average of 150 prospects per day.
Would be DIY sellers should also be aware that the presentation, or staging, of a home is not as simple as doing some spring cleaning of the carpets, work surfaces and curtains. The best realtors are experts in knowing what buyers are looking for in a home and will provide you with in-depth advice and assistance in presenting the home to its very best advantage. Everything from fine tuning curb appeal when your viewers turn up at your home, to layout of furniture and advice on what needs to be done to eliminate negatives such as tired decor. Never underestimate the impact professional staging can have, not only on the potential buyer's impressions of the home, but also directly relating to what they will ultimately be prepared to offer for your home. A lack of experience in this key area can severely hamper everyone's goal of selling in the quickest time for the best price.
For the moment, let's imagine that you've actually received an offer for your self-marketed home, but it has come in below your asking price. You will be in an exceptionally poor position to properly evaluate that offer. We talked earlier about pricing your home correctly and you simply won't have the current and historical data at your fingertips to know if the offer is a reasonable and realistic one or, in fact, way lower than what similar homes in your area are selling for at the moment. Your realtor is absolutely invaluable at this point, as he/she is able to speak from a position of experience and knowledge on the true real world quality of any offer.
Also never forget that there is an awful lot of work to do once a satisfactory offer has been accepted. One of the key roles of a realtor is to carefully guide the seller through all the processes of closing the sale. Mistakes here can turn out to be very expensive and the ramifications can be long lasting. Legislation affecting the sale of homes changes all the time and, as a lone, inexperienced seller, you are taking big risks by having little or no idea if you are doing things correctly or not. Your lack of knowledge can also be a major contributor to the sale falling through, as you will have no professional support to handle any problems that may arise and the critical know-how to properly mediate to ensure that the sale continues to a successful conclusion.
If you've been struggling to sell your own home, contact us today. We'll further demonstrate the added value a dedicated, professional real estate company will bring to the process.