The number of DIY home selling services is growing and may have you wondering why the need for a real estate agent still exists. While doing the work yourself can save you the commission rate, flying solo may end up being more costly than a realtor’s commission.
Recently, I finished helping a client sell their home for $75k more than they were initially trying to sell it for, by themselves, on Kijiji. This article will outline some of the reasons why selling solo could have cost this client more.
Reasons Selling Solo Could Cost More
Not Correctly Pricing the House
Housing prices in this market continue to rise at a rapid pace. Knowing by how much is trickier than you may imagine. Basing a house’s listing price on known comparables in the area may not be enough.
My team, of experienced real estate agents, and I have the resources to find the exact sale price and we have the market knowledge to determine what the true value of your home is, ensuring you get top dollar for your home sale.
High Costs of Marketing and Promotions
Advertising the sale of your home can be a daunting task and gaining interest in a home sale requires more than just sticking a “For Sale” sign in the ground and adding it to a couple of classified sites. Marketing is a science that if done incorrectly can cost thousands of dollars without a return. Why spend your own money experimenting on different types marketing initiatives?
At The Dennis Team, we spend our own money, upfront, on marketing and promotions, including magazine and newspaper ads, fliers, hiring a photographer, glossy prints, and premium placements on listing sites. These costs can add up to thousands of dollars, which is money you wouldn’t need to spend.
The fewer prospects a listing has, the less (and probably lower) offers will come in. The Dennis Team has a big network, including other real estate agents, who swap listing information to increase the number of prospects a listing has. By using our out of town referral system, we are able to connect our sellers to out of town realtors and their buyers. We will also qualify these leads, by making sure they are active buyers, so your valuable time isn’t wasted on lukewarm leads.
Buyers Expect a Lower Price
It is common knowledge that a home’s listing price has the real estate agent’s commission fee built into it. When a seller lists the home based on comparables in the area they are also including the commission rate into their listing. The hope when selling without a real estate agent is you will be able to retain a portion of the commission by not having a real estate agent.
Here lies the problem, buyers know this and may also be looking to save money by only having 1 or no realtors involved. They might even expect it and make a lower offer accordingly. This may negate any ‘savings’ you expected.
Other Ways Selling Without a Real Estate Agent Could Hurt
When selling a home on your own, you have to solicit calls from interested parties, answer questions and make appointments. Potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. You may also find yourself making an appointment and rushing home from your day-job, only to find that no one shows up.
We have systems in place to manage this process seamlessly for you without wasting your time. We can answer questions, build excitement, and book appointments, allowing you to carry on with your normal life without wasteful interruptions.
Negotiating is a Tricky Business
Agreeing on the final sale price on a home sale is not easy. There may have to be many time consuming correspondences back and forth between the buyer and seller, with concessions on both ends. These negotiations often feel confrontational, and most people shy away the confrontation, resulting in more concessions than is necessary.
Negotiations can also come down to more than just dollars because people’s feelings are involved. Hearing that a buyer isn’t willing to pay more because they don’t like your décor choices can be difficult, and may result in losing out on the deal by over reactions to potential buyers trying to get a better deal.
We, at The Dennis Team, are experienced professionals in the art of negotiation. We sharpen our negotiating skills by continuing to attend seminars and courses. Over the years, we have been involved in every situation imaginable and have the necessary skills to work with potential buyers to get the best deal possible. We can be firm in the transactions, preventing potential bad blood between the buyer and seller. By speaking for you in tough negotiations, we are able to smooth things over preventing things from getting too personal.
Contracts Aren’t Always Straightforward
Even with a contract in place, the sale isn’t complete. Buyers may want to walk away for various reasons, some contractually legal and some not. Making sure the right protections / compensations are in place in case the deal goes south is key.
As experienced real estate agents, we deal with the contracts and conditions on a regular basis. We are familiar with which conditions should be used to protect you, whether you’re buying or selling your home.
Helping You Sell For More
Thankfully, the seller on Kijiji realized they were missing out on a huge chunk of equity by selling without a realtor and decided to use The Dennis Team. We were able to properly list their home and within a very short period of time we were able to secure them $75,000 above their initial asking.
Before you decide to sell your home solo, contact me and I will happily discuss this as an option with you.