Every now and then we see that little red sign sitting in the window of somebody’s home. “For Sale By Owner” it proclaims. Occasionally, a person can pull off selling their home without the help of a real estate professional. Just like sometimes a person can figure out what’s wrong with their car’s engine and fix it themselves. But most of us leave that to a mechanic – an experienced professional! He’s got the computer diagnostics and the right tools and knowledge.
A seller tries to sell their home without a realtor for one main reason. They want to save on the commission. The problem with that is that most buyers immediately deduct that same commission amount from what they feel the real price is. If the property is listed at $500,000, the buyer already has the real asking price pegged at $470,000. They’ve subtracted the 6% commission from the price.
So eight months later, a prospective buyer, the third to view the home, offers $420,000. The seller feels somewhat insulted. In negotiating face to face, it will be difficult for the seller to mask his annoyance with the buyer.
Let’s say the two, somehow, eventually reach a verbal agreement on price. A week or so later, the buyer submits his written offer that he has had prepared by his attorney. The agreed upon price is there, but the contract is asking for the seller to take care of any repairs or treatments necessary due to termite inspection, septic inspection, water test, and home inspection. The seller finds he could be on the hook for an unexpected $10,000 of possible remediation.
More tense negotiations, more animosity, veiled threats, more stress. You get the picture. The seller never saw it coming.
Let’s back up and suppose the seller started by listing his property with a local, licensed real estate agent. Upon signing the listing, the agent goes room by room and tells the seller what needs to be addressed to make the home more attractive to warrant the $500,000 price tag. It’s just cosmetic stuff mostly, maybe touching up some woodwork with paint. Outside, the leaves might need to be raked and that doggie poop cleaned up.
The agent now advertises the property in a number of effective Cape May County homes magazines. Plus the realty’s internet site, which is also widely publicized and linked to chamber of commerce and other popular sites. The realtor also puts the property on a half dozen other high viewer websites. This will lead to many potential buyers viewing the property.
Once negotiations begin with a buyer, the agent does your bidding. You’ll often never meet the buyer until closing, so no hard feelings. The agent can advise the seller as to contract conditions, inspections, down payments, etc. Once the contract is signed, the agent oversees many details such as inspections, is the mortgage process progressing, survey, deed, the title company, etc. You’ll even know your approximate closing costs before you ever sign the contract.
In the end, the price realized may be exactly the same, though it’s often more. But consider the ease with which the transaction was completed. No sleepless nights, no big surprises, no agata! Wasn’t it worth it?
- Mountain Man
To find out more about what realtors do for you, visit our website at http://www.JewellRealEstateAgency.com