6 Reasons to use a Realtor® When Selling Your Home
Are you planning on selling your home? Want to save some money on commissions and not use a Realtor?
Let’s talk about why that is not the best way to save money when selling your home. Many online listing websites may tell you that it is easy to sell your own home. Snap some pictures, buy a for sale sign, put it in your yard, and sit back and wait for the calls to come in from anxious buyers ready to buy! Sounds easy? It’s not. The process for buying and selling a home has gotten a whole lot more complex than that, and if your not careful, you could end up loosing a whole lot more then what you would have paid in commissions. Below are the top 6 signs that you may need to use a Realtor to sell your home.
1. You are uncertain of the true value of your home.
Choosing the right price for your home is critical when first placing it on the market. Overpricing your home right out of the gate is detrimental to getting it sold. The first few weeks that your home is on the market is the most important time. With today’s technology, buyers have all the information at the finger tips. Most every buyer has access to an online portal where homes are instantly emailed to them for review the minute they come on the market. This is the first time they will see your home, and if it’s overpriced, it will be overlooked.
It doesn’t matter what latest and greatest features your home has, or what YOU think its worth, or how much blood sweat and tears you’ve put into maintaining your home. Buyers are savvy, they have done their homework, or are working with a professional agent that has done the work and knows what similar homes in the area and selling for and appraising for. If your home is over priced in this first glimpse they see of your home, they wont likely go back to look again.
Under Pricing?
Under pricing your home can be just as bad. No one wants to leave money on the table, and that’s what can happen by under pricing. Sure you will get a lot of activity on your home. You will also raise suspicion as to what could possibly be wrong with your home, and how much money will a buyer have to spend in repairs because your low price is giving an illusion of a problem. It can also make buyers think that you are trying to spark a bidding war. This can cause an influx of offers from people trying to get a great deal, but may not follow through with the purchase. It can also cause more serious buyer to shy away.
2. You’re loosing sleep because this is likely one the largest financial transactions in your lifetime.
There is either lot of money to be gained, or a lot of money to be lost. It is a very stressful time whether you’re buying or selling a home. Why not let a professional handle it for you so that you can rest easy knowing that no steps are being missed, no laws are being infringed upon, and everything is being taken of for you.
3. You can’t decide if you should remove that original 1980’s shag carpet, or to remove the mirrored walls in the dinning room.
Sure, we’ve all seen the 1980’s inspired home décor on HGTV, but is that what buyers in your area are looking for? Knowing the current trends for decor and style is important when selling your home. A real estate professional knows what is currently trending, and what will cause a low ball offer.
4. You think staging has something to do with Broadway musicals.
Staging your home is an important step in selling your home, and professional agents know the best way to show off your properties capabilities. This includes recommendations for simple de-cluttering and furniture placements. For even more information on this topic, see How to Prepare your Home to Sell.
5. It’s unclear to you who your target demographic is and how much you should spend on marketing.
Knowing who is most likely to buy your home is key to determining what marketing to use and how much to spend. Is your home best suited for an investor? A young family looking to buy their first home? Or is your home most desirable for someone relocating to the area to enjoy retirement?
What’s your marketing budget for your home? How will you advertise? With 97% of all home buyers starting their search on the internet, an online presence for your home is critical.
Most professional agents will have websites, and a solid marketing platform to drive traffic to their site. The company the agent works with is also a huge factor. Century 21, for example, spends millions of dollars each year marketing properties domestically and internationally in over 72 countries, and over 13 languages.
6. I don’t want to pay the full commission to use a Realtor.
You don’t want to use a Realtor to help sell your home, but your willing to pay a commission to an agent that brings you a buyer correct?
FSBOs (For Sale By Owner) accounted for 10% of home sales in 2021. The typical FSBO home sold for $225,000 compared to $330,000 for agent-assisted home sales according to the National Association of Realtors. That’s a LOT of cash left on the table!
With most FSBO properties, a Realtor is the one who brings you a buyer. And they will likely make sure that they will earn a commission if they do this. So for the sake of keeping this easy, let’s use a commission rate of 6%. Sounds appealing to only have to pay out 3% versus the full commission of 6% right?
Let’s break it down. Your home that you “listed” yourself sells for $225,000, and you pay a 3% commission which is $6,750. You walk away with $218,250 and saved $6,750. Not bad right?
Let’s say you use a Realtor to list your home and it sold for $265,000. We won’t even go as high as $330k. You paid a 6%, or $15,900.00 commission. You walk away with $249,100. A $30,850 difference. Better?
On average, FSBOs sell for 30% less than they are worth. Buyers are savvy, and know home values and these statistics. To a buyer, a FSBO is great way to get a great deal on a home. But to you, the seller, you may not be getting the real value of your home, and leaving money on the closing table.
One last thought to leave you with… Buyers will typically want an appraisal of the home (if there is a loan involved, it will be required) and the contract will be contingent on the home appraising for the amount they are offering. As a seller, you will only know if the home appraised or if it came in less. If your home appraises much higher, there is no obligation for the buyer to share that with you.
Don’t go it alone, use a Realtor when selling your home.
Ready to find out more and use a Realtor to sell your home?
Contact me today if you would like a complimentary market analysis of your home to see what you could sell your home for. Or get a FREE Instant Home Valuation now.