Important Points to Consider Before Trying to Sell Your Own Home


DIY agencies are tempting when they advertise big savings in commission fees. Some owners think that selling their own home will save them a lot of money because of high Realtor commission fees. Before you decide to take on this task, carefully weigh the pros and cons. Also, note that even most Real Estate lawyers recommend against selling your own home in today's market. Here are a few of the reasons why:
 
1. You are radically limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate), which theoretically means your home will take 10 to 15 times longer to sell on the market.
 
2. DIY sellers tend to overprice their homes. The longer a home is on the market the lower the selling price will be in the end. Why? Because most buyers think that if the home has not sold after at least a month, there must be something wrong with the home.
 
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a Buyer Agent, those Realtors are professionally trained salespeople who know how to address buyers’ questions and sell the merits of a property.
 
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible in the least amount of time, to generate the highest price possible. Only a Realtor connected with the powerful MLS system and many other marketing tactics, can make this happen.
 
5. A skilled and savvy Realtor knows how to properly prepare a home for selling which includes decluttering, repairs, staging, professional photography, and so many other tips and techniques. Do you really have time to manage all of these details with no direction and hands-on help?
 
6. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid For Sale By Owner (FSBO) properties. 
 
7. Lack of negotiating experience and direct emotional attachment to the property, often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

8. In the Greater Toronto Area market, many houses attract multiple offers at the same time. This process needs to be handled carefully and fairly or you could face serious legal consequences. Also multiple offers are a perfect opportunity to get a very high price for a property and FSBO sellers have no experience in making that happen.
 
9. It's simply a fact that the majority of qualified buyers are working with experienced real estate professionals.
 
10. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream; this can sometimes make them wary and suspicious of what they might be getting into.
 
11. Since the majority of buyers hire a real estate salesperson to represent them as their Buyer Agent, you will probably be negotiating against a savvy professional. Also, this person works exclusively for the Buyer and will not have your best interests in mind. You will be unrepresented at the negotiating table and your lawyer does not offer the same service that a Listing Agent would.
 
12. Savings in commission fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers. This amount is usually 2.5%. 
 
13. If you are planning to use a lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher than a regular closing.
 
14. Only real estate sales representatives have access to current market information. Further, real estate agents sell home every day. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling that the average homeowner does not have.
 
15. You only pay the commission to the real estate broker if they successfully sell your home at the price you are happy with. It costs you nothing to list with an agent since real estate agents work on contingency.
 
16. Accepting an offer is one thing; ensuring a safe and successful closing is quite another. Real estate transactions often have problems on closing. At times, expecting the Buyers’ and Sellers’ lawyers to fight it out or resolve any problems, can often mean the deal is lost. This is the time that your experienced real estate professional can be the most critical asset on your home-selling team. Your Realtor can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.

17. Real estate brokerages have all the tools needed to properly and efficiently sell a home. This includes things like signage, lockboxes, computerized appointment booking systems, and access to the best resources such as photographers, stagers, home inspectors, repair people, lawyers, mortgage professionals and more. 
 
We are professional Realtors who know how to sell a property quickly, efficiently, and for top dollar in today's market. We also offer a competitive listing commission to help you save money. Contact us today to help you sell your home!