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If you are thinking of selling your home and are considering using a Realtor versus For-Sale-BY-Owner (FSBO), Zandra Lawrence presents some factors to consider: Selling a home takes on average 100 hours, and to get the job done right it requires a full-time commitment. More than 8 in 10 home purchases are through a Real Estate professional. 52% of all FSBO’s try to sell their own home to avoid paying a commission by hiring a Realtor. Some problem areas for FSBO's include, arranging for Appraisers, Inspectors, pricing, attracting enough buyers, helping buyers to obtain financing, paperwork and lack of time. 50% of all assisted sellers highly rate knowledge and competence an important factor when choosing a Realtor.
As a FSBO there are a number of challenges. If your home is not priced accurately it could get stale on the market. The longer the property sits on the market, the greater the difference between asking and selling price. Another challenge can be the lack of experience with Disclosure Laws and paperwork. Negotiating for yourself can be difficult because of the emotional attachment to your home. Basic level marketing can limit your exposure to buyers. Buyers look to FSBO's to save commission and the FSBO's look to the Buyer to save commission. When the FSBO lacks professional representation during the sale, he typically nets less money. When interviewing a Realtor, ask what services will be provided and to supply you with a written guarantee or warrantee. Also consider hiring someone who will give fair and ethical treatment and is committed to your goals. Before the price is determined on your home, let him or her explain their analysis of the market. If your property is overpriced you run the risk of it not appraising. Do you want your home to have the highest ticket price or do you want it sold for the highest market price you can get? A lot of factors affect the price of your property such as the age and condition of the home, the size of the property, and the condition of the appliances. Your home must appraise in order to qualify for a mortgage. A professional Realtor can research and analyze properties in the market which recently sold, compared to properties that are available, under contract, and expired. A realtor can monitor the market to accurately price your home. Before spending on home improvements, ask your Realtor to make recommendations on what will add more value to your home. For example, a good place to invest your money is usually the kitchen and the bathroom. Other professionals such as Inspectors or Engineers can make recommendations on structural improvements or repairs. Making any necessary repairs can make a smoother transaction during the selling process. When considering commission, paying too little can cause you to loose everything. You may pay more in the long run if the job is not done properly the first time. In a Real Estate transaction, by Law, the Real Estate Agent must disclose whom he or she represents to all parties in the transaction, whether it be the Buyer or Seller. Ask your Realtor about their hours of operation, marketing and advertising, internet exposure, relocation affiliation and company statistics. As a final consideration, regarding using a Realtor versus selling privately, Your Realtor gets paid, once your home is sold. If you sell on your own, your expenses will be the same even if your home doesn't sell. Feel free to contact Zandra Lawrence (631) 821-4927 ext 105, without any obligation, if you have any questions about buying or selling your property, hiring a realtor, or to obtain a Comparative Market Analysis. |
