Number 10 on the 10 Smart Move to Sell Your Own Home list was to Qualify your Home Buyer. The next Smart Move would be to consult a Real Estate Professional. As an Orlando Realtor and Coldwell Realtor, and having spoken with sellers of homes for sale by owner, I will give you many reasons why this move is crucial.
- A Real Estate Professional has quite a bit of experience with homes selling. In other words, they can tell you what homes have sold in your area, for how much they sold for, how long it took them to sell, how difficult of a process it may have been to get it to the closing table, and why a home may not have sold. They can tell you what your home is worth based on this data.
- One very important aspect of the home-selling or -buying process that many owners of for sale by owner homes don't think about, is the fact that Realtors are privvy to feedback from buyers they've shown homes to. This feedback, including wall color, odors, clutter, etc., isn't as freely given to owners as it is to Realtors, because we are often seen as neutral parties. Here in Orlando, I've seen first-hand how a buyer is distracted by cosmetic nuances that can EASILY be taken care of if the owner new about it. Any orlando realtor would tell you that pools are a must-have at a certain price point. If you don't know this or don't consider this when positioning your home for sale, you may be caught off guard by the balking.
- Talk to a professional and allow them to walk through your home with the mindset of a potential buyer. They shouldn't have a problem doing this and giving you honest suggestions.
- Before making the decision to sell your own home, make sure a realtor isn't the better choice. Try not to base your decision only on saving money. A realtor will ask for compensation for the time and efforts to get your home sold. The range may be anywhere from 2% - 8% of the sold price. This is quite significant. However, consider the following before your final decision:
- How will you market your home? Realtors typically market homes on several websites (Coldwell realtors market properties on over 350!), in the Multiple Listing Service, to their sphere of influence, to the many people they've met over the years who are in their database, and to new contacts they meet on a daily basis. Speak with a realtor to find out how they would position your home to sell to see if it is worth it to you.
- How will home buyers perceive the price? Home buyers buy directly from owners because they are seeking a deal. They are keenly aware of a for sale by owner's savings.
- Will you net more selling your own home? If you have a healthy grasp on how value is determined, and how it differs from price, it may be better to go ahead and sell your own home. Value isn't determined by the what you have paid, what you owe, what you need, or what you've spent. It's determined by what others will pay. Studies have shown that professionals sell for 16% - 28% more than sellers of for sale by owners. Remember, car dealers sell cars for more than the owners themselves. Find out where a realtor would price your home, then price it accordingly.
- How will home buyers perceive the process? Unfortunately, some buyers see for sale by owner sales as an opportunity to receive a discount, simply because they don't expect to get the same service, warranty, and security as they would if the home was represented by a licensed individual and licensed company. Home buyers see the process as being a little riskier. One of my buyers compared it to an Ipod sold on craigslist by the purchaser and one sold by Best Buy. Speak with a realtor about the service and warranties they can offer, their education, if they used pre-approved forms and contracts, and whether their broker mandates E & O insurance. You can also speak with one about how to offer great service even after you have decided to sell your own home.
- How much time do you have? It takes many weekly hours to get a home sold. From taking care of signage, showings, communication with buyers, following-up, marketing your home, etc. Ask a realtor how much time will be taken out of your week if they were to list your home, and compare that to the same if you were to sell your own home. This will help you make an informed decision as well.
Selling your own home can be a trying experience but rewarding as well. Speaking with a knowledgeable realtor will increase the opportunity of the latter.
Stay tuned for an expansion of Number 8 on the list of 10 Smart Moves to Sell Your Own Home.
