According to a recent study by the National Association of Realtors, only 9% of homeowners sold their homes nationally last year without the aid of a REALTOR. There is a very good reason for that. While it may seem that private sellers are saving a 5-7% brokerage fee, the fact is that very often they are actually leaving money on the table.
Here are 10 ways that listing your home with a
professional real estate agent can actually SAVE you money:
1. Pricing in this market can be very tricky. Not only is it critical to have access to MLS, but the requisite experience to make appropriate timing adjustments, etc. when establishing a sales price. Given the pace of the market, it is not unusual for by owners to actually be leaving money on the table.
2. In the event that an appraisal comes in low, an experienced agent can navigate through the appeal process. Understanding how to build a case, either for a percentage adjustment in underwriting, or directly to the appraiser, can mean the difference in thousands of dollars.
3. Inexperienced sellers have no way of protecting themselves against “junk fees,” those extra costs imposed by the buyers’ mortgage company that certain buyers are prevented from paying. This is a common unexpected last minute expense.
4. Finding a buyer in this market is relatively easy. Making sure that you have the right buyer is an entirely different story. A “for sale by owner” who accepts a contract from a buyer using an online mortgage company, may be unwittingly subjecting himself to an out of area appraiser, an inability to monitor the loan status, and likelihood for delay. Since the buyer and seller aren’t using an agent, it is unlikely that the buyer will have been referred to a local competent lender.
5. ForSaleby Owner’s are easily fooled by pre-qualification letters, which in most cases are not worth the paper they are written on. Taking a home off the market for an unqualified buyer, or a buyer with a hidden contingency, can cost an unsuspecting seller months of delay and cost.
6. Realtors are highly trained and experienced negotiators, who not only have the advantage of familiarity with the market, but who can be objective. Sellers who are positioned to negotiate directly with buyers set themselves up to make concessions they would not otherwise make. This is not only true regarding offer price, but especially as it relates to making repairs pursuant to a home inspection.
7. Contracts and forms used by realtors have been developed over the years to protect all parties, and address typical obstacles encountered during the settlement process. Unless you are using an attorney who specializes in real estate, it’s not unusual for contracts to be vague as to specific obligations of the parties regarding home inspections and repairs, which can result in a return to the negotiating table half way through the process.
8. Realtors are in a unique position to harness the momentum of the current market. With only one house to sell, it is unlikely that a for sale by owner can create a “bidding war” experienced by most realtor-listed properties in this market. Our office has a proven strategy for inviting multiple offers, giving you an opportunity to sell above the asking price, and benefit from escalating offers.
9. For sale by owners sell a home once every 5 or 6 years. Realtors sell them every day. That gives realtors a tremendous edge when evaluating the pros and cons of purchase offers. For example, the loan type (VA or conventional) seems like an innocuous distinction between buyers…but can amount to thousands of dollars in consequences in repair and valuation guidelines.
10. As closings escalate at the end of the month, there is ~ without fail ~ several termite or moisture “horror stories” in the office. Because crawl spaces are inaccessible to the average consumer, termite and moisture clearance letters often come at a high price to unsuspecting sellers. Realtors know which exterminating companies are reliable, and how to get competing bids to make sure that you are not overpaying for work performed.
Email us at concierge@lizmoore.com, or click below, for a complimentary market analysis on your home.
