Last month we explored the top three myths and realities of the oh-so-enticing private home sale process. Here are three more points to take into consideration before you put on your realtor hat!
4. The argument: Agents Aren't Appraisers
Appraisers are the key to getting the right price. Agents just give their perspective. Private sellers can get these services for a cool $200-$500.
Reality: One of the most important things in marketing your home is getting to the correct listing price. It’s very hard for any person including a Real Estate professional to be unbiased about their own home - emotions are abundant! This can cause you to list too high, which makes the home sit on the market and the chances of selling for the right price less of a reality.
An appraiser will typically not be as knowledgeable with the most accurate and recent in depth comparables. For condos, an expert will look at square footage comparables and for houses they will look at whole list of other unique selling features.
An appraiser’s thought process is to come up with what they think or believe the home is worth based on a number of criteria. An agent is there to determine what your home could sell for. They are paying attention to current trends that are happening right now in the market. They'll look at how much inventory is currently on the market and prepare your home in a way that best maximizes your return.
Don’t get me wrong, most appraisers do a great job and there is a definite need for them but again, there’re going to tell you what it would cost to rebuild your home if anything happened to it not what it could sell for.
The most experienced Real Estate agents will actually get another agent in their office to list their property or at least have another agent consult to provide unbiased suggestions or ideas. So if professionals do this, what do you think you should do?
5. The argument: Agents Aren't LawyersAgents ensure documents are right. There's a myth that agents help with paperwork. Independent sellers can find good lawyers...easily!
Reality: It’s the fiduciary responsibility of a Real Estate professional to make sure you’re legally represented appropriately. A lawyer isn’t going to make sure you have the correct room sizes, and that you negotiated the best price.
Yes you need a trusted lawyer, but agents can help with this and assist in finding the right financing option, help with the closing process, evaluate proposals etc.
They are essentially your safety net.
6. The argument: You Can Do What an Agent Does
Agents just provide convenience. All their services can be done by a homeowner who wants to work at it.
Reality: While agents provide peace of mind and convenience, they also bring detailed knowledge, insight and ideas to help get you get the most out of your home. While you may be able to save half the commission (2.5%), you'll need to know whether you're selling for the right price.
As a seller you have to be very careful with what you say when talking to potential buyers. Every time you open your mouth or make a statement you can be affecting the price they are willing to pay. Real Estate professionals are trained to negotiate and are educated on the real estate practices and client protection.
An agent can help you get the highest price and ensure you're making the right decisions. A true Real Estate professional will go over all your options and help you make the right decision. They will make you aware of possible concerns or issues and have your best interests in mind.
Once they know your whole situation they should be able to tell you what your net return should be based on a few different scenarios. From there you can now make a proper educated decision on the path to take.
With this being your biggest asset do you really want to trust it in the hands of an amateur?
Before making any decision, speak with your trusted Real Estate professional. Even though you may way to save some extra cash, they might have a few ideas on how to do so... without the hassle of a private home sale.
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