Reasons Why Selling Without a Real Estate Agent Could Cost You
Selling without a real estate agent.
Imagine that you or your child has come down with a mysterious illness. Having little to no medical background, would you try to treat it yourself, or would you seek professional medical advice? Chances are you may know some basic first aid, but in reality, you run the risk of doing more harm than good in the long run.
Selling a property by yourself is a bit like being your own doctor.
By doing all of the work yourself and using your own best judgment, you may save yourself a couple of dollars upfront on marketing and agent fees. But, you may end up spending far too much time than you had hoped, and you may come out on the wrong side of a bad deal professionals could have warned you about far earlier.
In the end, selling a property may cost you even more without recruiting the help of someone who has mastered the real estate market.
Selling Without a Real Estate Agent.?
Below are 9 areas where real estate agents are essential to a successful sale – and where inexperienced individuals may struggle.
1) Knowledge is king
There is more to selling a property than listing it on the Internet or placing a sign in the front of the lawn. The tricky part is when potential buyers come to view the property and start to ask questions.
An agent’s knowledge of the entire selling process is priceless. Agents are able to prepare sellers for the most frequently asked questions and navigate them through every step, even starting before the property hits the market. While some may jump to list their property in the hopes of getting instant offers on their chosen selling price, a good real estate agent will take a few steps back and attack the sale smarter.
2) Knowing what to disclose
Selling a property is filled with risk. Individual sellers must comply with legislation and fill out paperwork that can at times be very confusing, but something that is second nature to real estate agents. Disclosing too much information or too little may cause problems down the line that sellers may not even realise when they tackle a sale on their own.
For example, a good real estate agent will ensure that the buyer and seller never meet before the sale has gone through. Withholding this information may be the difference between scoring a good sale and turning the buyer away altogether.
3) The value of time
Before preparing to sell, decide how valuable your time is to you, and how much time you are willing to allocate to the process. After all, you can never get time back!
When thinking about timing, consider this:
– Do you have the time to gauge interest in the property instead of rushing to a sale?
– Will you be available at the drop of a hat to show the property to an interested buyer?
– What are your other commitments besides selling the property? Will holidays, other plans, or work get in the way of a sale?
– Are you able to spend the extra time digging for more thorough information on the property for an interested buyer, or would you rather pass on the needier clients and move on to those willing to buy right away, perhaps at a lower price?
One area where real estate agents can make a big difference is in the amount of time you need to spend on selling a property. For example, would you have the time fielding extra questions by interested buyers? Real estate agents put in the extra time and effort to reach out to industry professionals like designers, builders, and engineers to give interested parties the most detailed response to their questions and concerns about the property. Do you have the time and the knowledge of the industry to field questions like these? Are you able to answer questions or concerns about the property objectively?
Whereas selling your home is likely another chore on your plate, real estate agents spend their days buying and selling. You can save yourself time by using someone else’s to get the job done!
4) Presentation of the property
It is rare that buyers walk into a home and are able to envision their future in it. Very often you literally need to paint them a picture of what the property has by highlighting its best features, what it could be in their hands, and why it’s the perfect home for them.
You never get a second chance to make a first impression
– Oscar Wilde
As a homeowner, do you know how to present your property in the best possible way to the buyer who is willing to pay the most? The best sellers are able to tailor showings to individual families and interested parties instead of using the same selling points to a variety of people with completely different hopes and dreams in mind.
The property owner may assume they know their own home the best, but oftentimes it takes an objective voice to assess the property and showcase the features that are most important to others. A real estate agent knows how to stage a home to fit a variety of interested buyers, rather than risking turning away individuals because of certain stylistic choices that give the interior or exterior a completely different look.
5) How to get buyers through the door
There is no point in having the most attractive property if nobody knows about it.
How is the property going to be promoted? If you are planning on advertising your property for sale online, which platforms should be used? Does it matter which type of advertisements you choose? What about the local area marketing – where will you find the most success?
Individual buyers may have their own opinion on what platforms they believe will be the most successful, but real estate agents who see sales go through daily will know best how to attract interested buyers and get them to step inside.
6) Negotiating an offer
Negotiating an offer is not just deciding on a price. Other conditions in the contract need to be worked through, and oftentimes sellers can hurt themselves in this step without knowing the consequences of certain decisions they make.
For instance, if the parties cannot decide on certain negotiations or settle on time, the seller may be charge a penalty interest, hurting them in the long run.
Do you know where to give in to the buyer, and where to protect yourself?
7) Passing the settlement torch
Who is handing all the paperwork once the contract is signed? Does this person know how to finalize a settlement?
Typically, a real estate agent has a strong relationship with a settlement agent who can keep a sale together and save their client lots of grief and money. Some buyers and sellers make the mistake of getting the cheapest settlement agent or one who promises a great trade off. But what happens if there is a default or a breach of a condition? How well do you know the Joint Forms of General Conditions?
If a problem arises, a great settlement agent is worth every cent.
8 Finance
In Western Australia, most properties are sold via Private Treaty, though a small percentage is sold using Auction. When sold via Private Treaty, more often than not, the offer is subject to finance. As a seller, how do you check that the finance is going to stack up? What questions do you ask, and who can verify those details?
9) Final inspection
The final inspection is the final hurdle of a sale, but can cause a lot of stress and anxiety, even for real estate professionals.
As a seller, you have a lot of responsibility to make the final repairs and upgrades negotiated in the contract. There is also no excuse for skipping steps or not completing changes and fixes. In fact, failing to do so could cost you even more; For instance, failing to upgrade RCD and smoke detectors could cost you a fine of up to $15,000 in Western Australia.
If the property needs those final touches, the seller may choose to take care of them on their own, but it often requires professional help fast – which typically is not easy to find. Real estate agents have the professionals on speed dial who will be able to take care of the work last minute to avoid any fines.
So, have you made a decision?
Selling your property without a real estate agent is like throwing caution to the wind, along with the commission.
If selling real estate were so easy, why wouldn’t everybody do it on their own?
Over the years I have discovered that there are a number of actions that a vendor can take, which will make a huge difference when selling. This tried, tested and proven checklist has sold properties ranging from $200,000 to $2,000,000 plus and everything in between. To receive your free copy of this checklist, simply click on the link below.
