SELLERS FAQ'S

FAQ ABOUT BEING A…..

Don't I save the commission money by selling it myself?

Although this is the most common reason why a homeowner wants to go through al the hassles of selling their own homes, it rarely turns out that way. For one reason, unless you are actively in the real estate business it is pretty tough to know how much is the value of your house on the current marketplace. There are many variables to consider. Is the market appreciating, depreciating or flat? What seasonal variables can affect the price? How does your home compare to other similar homes in the area that buyers will be looking at as well? What have serious buyers been paying for your type of home over recent months? A professional real estate broker can help determine this by doing a comparative market analysis. (usually with current data stored in their office computer).

Another important reason why most homeowners are not able to sell on their own and save the commission is that most serious and qualified buyers will comparison shop.

You have one house to offer, while a professional may have dozens or more homes for a buyer to look at. That is why most buyers will go to a professional and “lookers” will shop around at the For Sale by Owners. They are not quite ready to buy yet unless they can get a real bargain from a homeowner who unwittingly underpriced their home by thousands. At the vey least, these bargain hunters are looking for a For Sale by Owner to take 6% 7%, of more off their asking price to cover what commission they might have paid.
These type of buyers will arbitrarily ask that you lower the price of your house so they can save as much as possible. Youwould not save anything at all and vey possibly net less than if you were with a professional. If you were buying a home from a private seller, wouldn’t you expect to save that money too?

I know my house better than anyone. Wouldn't I have a better chance of selling it to a buyer than some real estate agent who doesn't know it as sell as I?

There is no doubt that nobody knows the great aspects of your home as well as you.

However, a trained professional who sees hundreds or thousands of homes are accustomed to showing all homes to their best advantage. Also, when selling a house the most important part is not knowing the home. The most important part in knowing the buyer and their particular buying motives. It may be difficult for you to know this when you’ve just met the buyer at your front door. A trained professional will interview and qualify a buyer before bringing them to your home or any other. This enables the professional to point out the features of your home that might be of most interest to the buyer and perhaps even downplay certain features that are not important or perhaps even undesirable to this particular buyer. For example, you as the homeowner might point out and elaborate to the buyer about your beautiful yard and how big it is. You might be very proud of this feature, and rightly so. But the more you go on about the yard’s size the more this particular buyer may think about how he loves your home but may be unwilling to give up his/hers weekend golf game or shopping to tend to his/hers new, oversized yard. You night actually talk the buyer out of buying your home by overselling a feature your think is a great buying point. A trained professional knows how not to make this mistake and overcome the buyers concern by emphasizing other features the buyer is looking for and how it would fit their overall needs and lifestyle.

But I've sold other homes by myself without any problems!

That may very well be true, but for a couple of different reasons. Many homeowners have unfortunately sold on their own before and had no problem selling it because they didn’t realize they had so underpriced the home. A sharp buyer will know that and buy the home immediately before you discover the truth or have a change of heart. It is very easy to sell something that is a real bargain.
Or, perhaps, you sold those other homes when things were simpler. In today’s ever-changing an complicated market there are new federal and state laws that govern real estate transactions. There are also numerous local ordinances that your might need to be aware of. A trained professional knows these laws and regulations. It is true that your attorney should know them also, but most of the time an attorney is brought into the picture after you have found a buyer for your home. At this point, the problem may be discovered but not prevented, this could cost you money or the sale itself. Besides, your attorney will probably charge you extra for doing the work that a professional real estate broker normally would do, regardless whether you’re successful at selling your house or not. Most professional real estate brokers will charge a fee only after your house is sold and in the hands of the new buyer.

How difficult can it be to write an ad for the newspaper, put a sign on my lawn and wait for the right buyer?

Putting an ad in the newspaper and a sign on the lawn is not difficult at all. In fact, many for sale by owner ads are quite creative and attractive. Waiting for the right buyer is another story altogether! First of all, how many hours are your willing to wait by your phone? Are you willing to wait for weeks, months, or even a year? Sure, you could use an answering machine. However, if you were a serious buyer willing to buy a home today if you found the right one, would your just wait around for a return call or would you go out and look at other homes that day? You might just miss out on that tight buyer! A trained professional who is marketing your home can answer some questions that buyer might have and keep them interested enough to make an appointment to see your house the next day! Also, there are some people who just do not like to leave messages on answering machines.
(even serious and qualified buyers).

These commissions seem like a lot to pay for putting an ad in the newspaper, a sign on my lawn and bringing over a couple of buyers who fall in love with my house!

Yes it does. If only it was that simple, the truth is that a trained professional works very hard to get your house sold. First of all, a professional spends many fours and invests a lot of money to acquire the knowledge and skills that are needed to be successful in today’s real estate industry. It has changed a lot in recent years, your real estate professional must know the best way to market your house to give you maximum exposure. They have to be fluent in all types of creative financing to meet the needs of each buyer individually in order to qualify for a mortgage on the home the will buy. A trained professional must attend many hours of seminars and classes to understand federal and state housing laws that can affect the buyers and sellers. The trained professional will also learn people skills and sales psychology to best handle the buyers who qualify for your home yet may be reluctant to make a commitment to buy, out of nervousness or lack of specific knowledge. The trained professional also learns how to negotiate on the behalf of the client.

I'm confident that with my experience I could negotiate A pretty good deal for myself!

That may very well be true, but not normally. An experienced negotiator know that a 3rd party who could negotiate for you puts you in a much stronger bargaining position. If a qualified buyer was interested in your house, buy decided to play it cool in order to try to get your price down, it is pretty tough to follow up with them without appearing overanxious yourself and therefore weakening your bargaining position. A trained professional who is a 3rd party can follow up on your behalf without doing this. Also, many times an interested buyer might say something that on the surface seems to insult the house but is actually a ploy to bargain the price down. If you take it personally and become defensive, (which is easily understood) your pride in your house could interfere with a logical business decision and kill the sale altogether. And that might just have been the best offer you would get!

Well I figured I would overprice my house a little for a negotiation cushion. Then the buyer can make a lower offer that will make both of us happy.

It just doesn’t work that easily. Today, buyers are more sophisticated than ever. With all the houses that are on the social media market today, a serious and qualified buyer just won’t bother even to look at houses that are overpriced. They can’t afford to waste their time with so many nice houses that are priced right. So the problem is that many serious buyers that might normally be interested in your house at the right price won’t even bother to see your house if it is too overpriced. The only ones who might look at it are the not so serious bargain hunters who have all the time in the world to buy. And those buyers will be looking to offer you a price far less than one the is acceptable. After all, they are bargain hunters!.

I'm in no hurry! I can afford to take my time, sell it myself and take a chance that someone will fall in love with my house and pay me the same as if I were listed with a professional. I can even afford to wait a year or more if I have to.

Can you really afford to take your time? What if you wait a year and your still can’t sell for the price your wanted? You’ve wasted a lot of time and perhaps even money! If you were waiting for your house to appreciate in value more just to get what your wanted and subsequently planned to buy a more expensive house, then there is a good chance that the more expensive house you wanted to buy also appreciated the same percentage. That would then cost your even more money than if your made the transaction a year ago. And are you sure that interest rates will stay the same and not go up any higher? Even if you were planning on retiring an getting a smaller, less expensive home, are you still better off waiting a year?

I don’t think so. Any extra money your could have gotten by waiting for a possible higher price may be lost in the increase in price of your new less expensive home. Besides, the extra money your waited for might not even add up to the extra money your would have saved if your had put the equity of your present home into a sage investment during the course of the year. furthermore, why would you want to waste an entire year of your retirement and live the new lifestyle your want and deserve?

I know some friends who did list with a broker and had a bad experience. The agent never called or did anything to really push the house!

Unfortunately, like in any type of business there are bad apples as well as good. It’s very important that your interview an agent thoroughly before committing yourself. Ask about their professional training, track record and don’t be afraid to ask for references from past clients. Let them know your want to hear from them regularly and set up schedule with them each week for when you can expect a call. Hiring the right broker can save your money, time and inconveniences.

Well, financially it's starting to make more sense to list with a professional than go through the bother and risk of selling it myself. Are there any other reasons why I should look into calling in a real estate broker to market my home?

Yes, there are many other reasons. One is that in most cases your will not have to pay a real estate broker one penny unless you are completed. You are risking very little. Another reason is money. Advertising expenses can be costly if your sell by yourself and don’t have much luck right away. A real estate broker knows that these advertising and marketing expenses are part of the cost of doing business. Whether the broker is successful or not in selling your home, he/she will absorb these costs (in most cases) and not you. That can be quite a savings on your part. One other reason is that most real estate professionals really work the hardest once your house is in contract and appears to be sold and the job dome. There is much running around to do to keep the sale together and trouble free through to the closing. The broker’s services include following up with the buyer’s mortgage lender. Home engineer reports, title companies, attorneys, and many other tasks.

I never realised there was so much to deal with when selling a house.

Yes! Many times there are difficulties in marketing and selling a home that you would not even know about because your trained professional was able to avoid and/or resolve a problem that could have cost your money or even the sale of your house.
In today’s world there is one other reason why many people decide not to sell by themselves. That is security. Most homeowners just do not feel safe advertising their home for sale and allow perfect strangers to go through their home. Whit a real estate professional prequalifying all inquiries, obtaining and verifying addresses and phone numbers and then escorting all buyers through your home, many homeowners feel more secure and safe.

Well, I've learned a lot! There are some big advantages to listing with a broker I never thought of. Where do I go from here to find the right professional?

Yes! Many times there are difficulties in marketing and selling a home that you would not even know about because your trained professional was able to avoid and/or resolve a problem that could have cost your money or even the sale of your house.
I suggest you find one who is a REALTOR ® that abides by a code of ethics and professional standards. The broker you choose should be enthusiastic about helping your and professional at all times in manner, speech, appearance, knowledge and conduct.