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The
truth is that only about ten percent of owners
successfully sell their home on their own. that
varies by region and the number goes up a tad for
professional real estate investors because they are more
familiar with real estate than your average homeowner.
Those
that do sell their home
successfully usually accept not only a lower price, but
they net less than if they had sold it with a
professional qualified real estate agent helping them -
especially in an uncertain market with high inventory.
Like
today.
It
would currently take almost nine months to sell all the
homes currently on the market at the current sales pace,
even if no new homes came on the market. That is
with all the advantages of a real estate agent and the
Multiple Listing System (MLS) at your side.
On
your own, it's even harder.
Why
is the MLS such a big help?
Well,
if you run an ad to sell your home, you not only have to
pay for the ad, but you can only sell your home to those
that see your ad.
That
limits demand.
As
everyone who has taken a business course knows, the more
demand for a product, the higher the price. The
less demand, the lower the price.
By
sharing information about your home via the MLS with all
other Realtors and brokerages in the area, you increase
demand for your home. Not only does your agent's
company advertise, but so do many others. Since
less than ten percent of prospects actually buy the home
they see advertised, real estate agents have to find
them another home to purchase. |
Realtors find those homes in a database called the MLS.
Unless you are an agent, you do not have access to the
program.
As a
result, not only is your agent working to sell your
home, but so are all the other MLS members, too.
If
you're selling by owner, you're just one person.
Your agent's efforts are multiplied by all the other
agents in the area.
More
demand. Higher price.
Not
to mention all the other problems with selling by owner.
A
FSBO sign attracts lowball offers, for one thing.
Buyers that want not just a deal, but a steal.
Have you ever stayed up late and seen an infomercial
about how to get rich in real estate? The number
one method is to find a steal, often by taking advantage
of someone who does not know what they are doing.
 Then
there are phone calls. Who answers them?
What do you say? How do you convince them to come
look at your home when you're available to show
it? How do you convince them to write an offer?
Where do you get the right forms? What forms do
you need?
That's
just the beginning.
Is
the buyer qualified? Do they have money in the
bank, good credit, can they get a mortgage loan?
Is your buyer's loan officer competent and flexible?
There
are also lots of details. Do you need an escrow
company or a lawyer? Termite inspection.
Home inspection. Warranties. Title inspection.
And
when there is a challenge (a polite word for
problem), as their always is, who handles it?
It
isn't easy and we've just barely scratched the surface.
We're
biased, of course, but we recommend a professional
agent. |
