DON'T RISK IT.
You’ve watched your home’s equity grow over the years.
Now that it’s time to sell, you don’t want to risk those
earnings due to uninformed pricing, lack of exposure
or worse… contract or legal issues.
Play it safe. Hire a REALTOR®.
When you find yourself in the position to sell your home, one of the first thoughts you have might be to attempt to sell on your own & save money. You’re not alone! Many homeowners look to cut costs on real estate transactions & believe eliminating the role of the agent (FSBO) will prove a significant savings. Given that selling your home is such a huge transaction, it’s smart to look into all your options. In some cases, what appears to be a “savings” on the front end could end up costing you in the end.
What are my options?
FSBO (or for sale by owner) or REALTOR® – we break down the benefits AND the risks.
A Realtor® is very much involved in the sale of your home. Realtors® are often commission based, which varies depending on the services they provide. But what they offer in return is well worth the expense.
Benefits Worth Every $…
Before advising on price, a Realtor® will come to your home, tour it, talk to you about problems or any updates & renovations you’ve done that would have an affect on the price. They’ll use that information, as well as recently sold and active comparables (using the MLS) to price your home competitively. By doing their research, your Realtor® avoids unnecessary price drops.
Most Realtors® today are using professional photographers, fancy cameras and/or drones to draw interest from potential buyers. Doing so highlights areas of the house that buyers love to see, such as views from the family room, length of the hallways and size of the backyard. These images and video are then used when marketing the home both in print and online.
A Realtor® will act as the conduit between you and any buyers interested in the home. This means funneling every question, scheduling every showing, assessing a buyers ability to purchase, and negotiating the sale to get you the best price possible. Think of your Realtor® as an ally in your corner, looking out for your best interest every step of the way.
FOR SALE BY OWNER (FSBO)
Going the FSBO route is a tempting alternative to hiring a real estate agent. After all, hiring a professional only eats into your own profit. So why not try and save money by selling your home yourself? Here’s why: There are some major risks with going FSBO, from a lower sales price to lancing in legal hot water. So before you pursue this DIY route, here’s a warning of some of the bad things you might encounter when you attempt to FSBO…
Pricing a home is far more challenging than most assume and the majority of sellers price their home based on emotions, not solid market data. This can result in a bargain buy for a savvy home buyer or months without interest in an over priced home. A Realtor® will provide an accurate home analysis based on current market data, helping you earn top dollar.
One key thing to a successful sale is expose. Without it, your home won’t be seen by the thousands of potential buyers and their agents. When listed with an agent and placed on the MLS (multiple listing service), thousands of other agents with buyers ready to purchase are working to sell your home. This increased exposure often nets sellers more than what they’d originally expense. But when you go at it alone, only one person is trying to sell… you, resulting in limited exposure and prospects.
Selling a home is full of legal details only a real estate agent will know. Going FSBO, you may be doing something that skirts the law without even knowing it. Disclosure requirements and misunderstanding contract terms are two big FSBO pitfalls that can cost you thousands.
Even if your FSBO gets an offer that you accept, you’re not out of the woods yet. For one, buyers back out or fall through for many reasons. For instance, you may inadvertently choose a buyer who can’t get a loan, which puts you back at square one. A Realtor® will work to confirm your buyers credit worthiness and ability to obtain a mortgage, then negotiate an airtight contract so the entire process will proceed smoothly.
What is the cost difference?
The difference in cost isn’t necessary the % of commission you’ll pay. Whichever route you take – whether that be FSBO or a professional Realtor® – could ultimately determine the amount you make on the sale of your house, which could add up to thousands of dollars. When looking at your options, do the math up front. Weigh cost vs. services vs. risk.
With so much involved when selling a home, you may wonder where to start? Have you missed important details that could carry potential legal consequences? Is your home getting maximum exposure? Avoiding these and other common pitfalls and costly mistakes should be top priority. Rid yourself of stress and find peace of mind when using a Realtor®. They’ll take care of all the details, helping to maximize your return on investment, and allowing you to focus on the road ahead.
TAP INTO A TEAM OF REAL ESTATE PROFESSIONALS
They say it takes a village to raise a child… well, you need just as many people to buy & sell a home. Your full-service Realtor® already has a team of professionals assembled, all who have the expertise to protect your interests as they take you through the process of home buying & selling. You’ll be tapping into this team of all the major players: mortgage lenders, inspectors, attorneys, home maintenance & repair professionals, warranty experts and title & escrow agents.
MORTGAGE LENDER…Not many people have enough cash on hand to pay for a house. So an important member of your team is the mortgage provider who fronts the money that lets you buy the home. You may find financing through a mortgage broker or deal directly with a lender. Think of your full-service Realtor® as a matchmaker, only instead of helping you find your soulmate, they’ll match you with a lender and then acts as an intermediary as you secure financing for your next home.
REAL ESTATE ATTORNEY… Buying a home means scaling a small mountain of paperwork. It’s essential to understand each and every piece of paper you sign. Your full-service Realtor® can explain many of the contracts and forms involved in the purchase, but isn’t an attorney. It’s a good idea to have a qualified real estate attorney on your team to scrutinize the fine print, answer any questions when needed and explain difficult concepts.
HOME INSPECTOR… Ever see the movie “The Money Pit?” A young couple buys what looks like a beautiful home at a bargain price, until the home starts to crumble around them. A home inspector makes sure you don’t meet the same fate. A home inspector gives your prospective property a thorough going-over, from roof to foundation and everything in between., checking the structure and its systems. A thorough home inspection will help you decide if a home is worth what you are willing to pay for it.
TITLE COMPANY… Title companies play several key roles in common real estate transactions. They generally act as the combined agent of the insruance company, the buyer, the financial institution and any other parties related to the transaction. The title company reviews title, issues inrance policies, facilitates closings and files and records the paperwork.
THE "REAL"TOR VALUE
For every known and obvious step in a real estate transaction, there is a handful of policies and procedures that are unknown to buyers and sellers alike. This is where the value of a Realtor® is evident. Hiring a full-service Realtor® is hiring a consultant, a marketer, a negotiating powerhouse. Discover the “real” value.
Hire a Realtor®.