Saving money is something I think we can all agree on. You work hard for your money and you would like to hang on to some of that hard earned cash, in the form of no commission fees while selling your home. So here is where your story begins. First, your motivation for selling will determine the price tag you want to place on your property. Easy, you have done your homework on realtor.ca, and have decided to price your home according to ‘similar’ homes currently for sale on MLS® in London, and because you’re extra diligent you have brought in a Realtor® or two to give you a free home evaluation. Perfect. Being the savvy seller that you are, you have chosen $299,900, which is a little bit below the market evaluation you were given for a quick sale. Things are getting exciting! Your next move will be to go out and purchase a FOR SALE sign of some type. Available at Home Depot, or Canadian Tire, it’s an easy affordable purchase. You may even want to get an Open House sign to put up on the weekend. So you have your price, you have your signs, now you just need to snap some good pictures you’re ready to hit the market. With the internet at every ones fingertips it couldn’t be any easier. Your strategy can include posting on Facebook, Kijiji, Twitter, Instagram, even creating your very own website to send traffic to via all your social media profiles. You may want to set up another email account with a catchy name to help route all your inquiries into a brand new spam free address. This entire process will only take a day or two if one is motivated. The part that might take you the longest is getting your property ready to list. Remove all clutter, clean like you have never cleaned before and maybe some areas require painting. This process is the same whether you decide to list with a Realtor® or take it upon yourself. And trust me when I say this, the work you put in at this stage is crucial. If you want to get the most money for your home, do yourself a favour and expose yourself to the homes currently on the market. Visit open houses, scrutinise the pictures of listings online etc. You will soon see the difference is very noticeable where a homeowner has put in the effort.
So there you have it, you have saved yourself 5% of 300,000. $15,000 give or take depending on what broker you use. But here is where the fairy tale ends for many private sellers. If you have been in sales, you will know the perils of dealing with customers are cringe worthy. The ones that you manage to come see your home, will tell you things like “We will think about it” and “We will get back to you” never to be heard of again. And because properties listed on MLS® are priced by Realtors by most part, and commissions are included in the price. The public will come to you with low offers knowing you’re saving money on commission. If you want to sell your home, you will undoubtedly lose thousands of dollars in negotiation. Of course this too can happen when you have listed with an Agent and many consumers don’t trust Sales Agents. However, they don’t trust amateurs on a much larger scale. Realtors are insured professionals bound by many rules and regulations, with steep fines and suspensions dealt out to those who break them. Ask yourself who you would rather purchase a home from; someone who likely doesn’t know much about real estate, or a Realtor® bound by these regulations that sells homes for a living? That’s just the tip of the ice berg. Many buyers are working with agents. Selling to those buyers means giving up a minimum of 2% in commission or leaving it up to the buyer to pay their Agent out of pocket. This is one of the many things you need to consider. And keep in mind they have essentially hired someone that is an experienced negotiator with knowledge of the market to help them with the purchase. Selling privately puts you on the losing side of the battle on many occasions. If you watch private sales closely, you will find many of them turn to a Realtor® to sell their home in just a few weeks realizing the value they can bring to the table. Some of this value is found in the referrals for other proven professionals needed for a smooth transaction such as lawyers, home inspectors and more. Of course you may be part of the few that has a great experience selling on their own. Maybe negotiating contracts and doing paperwork is something you enjoy and you manage to find just the right buyer. Just remember the most powerful and influential people use professionals for a reason. Happy Selling!