What can Teresa do for me to sell my house that I can't do for myself?
Selling a home without the aid of a real estate broker (to save the commission) looks like a good way to save money. But, it seldom works that way. Instead of saving it, it could cost you money. On average, homes sold through real estate agents/brokers sell for 27% more than those sold by owner.
Actually, facts and experience show the difficulties of trying to sell your own house far outweigh the benefits. If you have had training in salesmanship, psychology, diplomacy, law, finance, marketing, property values, are a skilled negotiator and aren't intimidated by lots of paperwork, maybe you can pull it off. You might even save yourself a buck. But the odds are against you because there are just too many pitfalls for the do-it-yourselfer to avoid.
Real estate is a field where it pays to use the services of professionals. They can help you with details that you probably wouldn't consider. Here is what Teresa does that a home seller can't do or finds hard to do:
- Places your property in the Multiple Listing Service (MLS) which exposes your house to all the buyers working with cooperating member brokers. This effectively puts every agent in town (over 7,000) to work selling your house markets your home to numerous online venues, websites, social media.
- Provides objective, solid up-to-date market information with recent sales and current listings which help you price your house realistically. Even with owners getting pricing information through the internet, owners tend to see their home through prejudiced eyes, preventing an honest evaluation of their property. Proper pricing is crucial to getting a quick sale at the best possible price.
- Can tap into a larger market through referrals and marketing techniques. There is more to finding buyers than just putting a For Sale sign in the yard. The buyer you're looking for may never drive by your house. How do you reach them? By advertising. That gets expensive. And "For Sale By Owner" ads rarely get preferred placement and cost more because they do not get discounts for frequent placements. Marketing and advertising is a specialty in itself.
- Shows your house whether you are in or not, saving you hours of "minding the store". Even if you are out of town for a few days, the job doesn't stop. Teresa can continue with the job of selling. Frees you from problems associated with showing your home. Prospects can ring your doorbell at all hours without regard to your convenience. You must invite complete strangers into your home -- many who are just curiosity seekers without any real thought of buying. And they will expect you to answer difficult questions about financing, closing etc.
- Teresa handles all phone inquiries, makes appointments, shows your home and follows up, leaving your time for you.
- Provides pre-qualified buyers who know what they want and how much they can afford. Screening prospects saves you from the hassles of keeping appointments with sightseers and protects you from the threat of unwelcome visitors.
- Provides salesmanship. How good of a salesperson are you? Getting an indecisive buyer to make a decision will be the test. Saying just the right thing and knowing when not to say anything can make the big difference. Successful salesmanship is an art and a science. And since buying a home is the biggest investment most of us ever make, highly sophisticated sales techniques are demanded. This is where Teresa's specialized training and experience with people really pay off.
- Maintains objectivity in responding to possible criticisms by the buyer. Buyers are wary of dealing directly with the homeowner. It is easier to speak frankly with a Realtor® than risk insulting the owner. Buyers need to feel they are getting a fair deal on a very large investment and are hesitant to do business with a non-professional.
- Helps you negotiate a satisfactory sale. Buyers usually offer thousands less than you are asking. Can you bargain effectively? Should you stick to your guns? If you do you could lose the sale. If you don't you may cheat yourself. How about making a counter offer, discussing price, amount of cash, date of delivery of deed, amount of mortgage and other important business matters? Do you even know if your buyer can be approved for a mortgage? Without an experienced mediator to act as a buffer between the parties, many situations bog down. At this point, Teresa's advice is invaluable. You will have an experienced professional in your corner to bargain for you.
- Leads you and the buyer through the maze of rates, points, fees, financing options, helping with loan placement and follow-up, getting the title work in place, inspections and all the paperwork involved in arriving at a successful closing.
- Knows how to help the buyer meet local financing requirements and go about obtaining a mortgage. Your contract won't be worth much if your buyer can't get the money to pay you. Specialized financing knowledge can lead to a successful closing that could otherwise be turned down.
- Protects your interests from contract to closing with an understanding of real estate procedures. Teresa has all the ability to smooth the way toward agreements and the experience to attend to all the details that must come together before closing can take place.
Your home is worth too much money to risk. It makes sense to weigh your decision very carefully about how to sell it. The best advice is to forget about selling your home yourself. If you are sick, you go to a doctor, if you need legal advice you go to a lawyer. Doesn't it seem logical to turn to a professional Realtor® to help sell your home. Let Teresa take charge of the sale of your home. She will put all of her experience and resources at your disposal and make every effort to get your home sold quickly for the best possible price.
Here is a story which recently appeared in the Wall Street Journal regarding Colby Sambrotto, the founder and former CEO of forsalebyowner.com:
It seems the founding father and lifelong evangelist of the concept of selling your home without a real estate agent was forced to hire a broker to sell his home after failing at what he preaches others should do. After failing to sell his NYC apartment on his own as a For Sale By Owner (FSBO), Sambrotto hired a broker and paid a 6% commission in order to get the job done. His personal experience helps refute some of the myths Sambrotto has been espousing for over a decade.
Let's look at two of those myths:
Myth #1 - You Will Pocket More Money Selling on Your Own
Most FSBO sites say you can save the commission by selling on your own. What happened in Sambrotto’s sale?
“The broker, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion's Head building on West 19th Street near Sixth Avenue was priced too low and wasn't drawing the right buyers. By May, it went into contract, he said, after attracting multiple offers. It closed in the last few days for $150,000 more than the original asking price.”
Myth #2 - The Internet Alone Can Sell Your Home
Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity.
What happened to the FSBO guru when he attempted to only depend on the internet?
“Looking to move his family to the suburbs, [Mr. Sambrotto] said he carefully staged his apartment for sale himself, and put it on the market. But after using a mix of websites to publicize his apartment, he said he had only ‘middling success’ and switched to a broker because many buyers
were so reliant on brokers.”
There is a reason the real estate industry has been around for centuries: it performs a valuable service.
Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.
Here are five of our reasons:
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- Your bank in the case of a short sale.
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?
3. Actual Results also come from the Internet
Where do buyers find the home they actually purchased?
- 43% on the internet
- 9% from a yard sign
- 1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real commission. The seller and buyer can’t both save the same commission.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn’t mean that an agent can get $46,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.
A well-known legal profession axiom:
“The attorney who represents himself is dumb and has a fool as a client.”
We believe this also applies if you attempt to sell your own home as a For Sale by Owner (FSBO).
In today’s volatile market, you need an experienced professional!
You and your family need a skilled negotiator In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
Here is a list of some of the people with whom your agent will potentially negotiate on your behalf:
The buyer’s agent
The buyer’s attorney
The home inspection company
The termite company
The buyer’s lender
The title company
The town or municipality
The buyer’s buyer
Your bank (in the case of a short sale)
How do you know if an agent negotiates well?
Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer in your deal.
You need a great negotiator. We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.
Still want to sell your house yourself?
process to avoid paying the commission.
Feel free to contact Teresa as your trusted advisor through the home selling process