New June 2014 Toronto Housing Report! If you’re interested in Etobicoke real estate or listing in Etobicoke or Downtown Toronto, understanding the market is
Occasionally, one can see “For Sale By Owner” signs, and some owners think that selling their own home will not only save them money on realtor fees, but believe they have an advantage over the sellers that do have homes listed by a reputable Realtor. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:
1. It will take 15% longer to sell
You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. Drop in price
The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long… there must be something wrong with the home.
3. Real estate agents can overcome buyer’s remorse
The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor and the offers will automatically follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own, they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a real estate professional, Realtors are trained on how to overcome buyers remorse–a very common occurrence.
4. Limited exposure
Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home -selling means exposure. You need the maximum exposure possible to generate the highest price possible.
5. Avoid awkwardness
Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Negotiating experience
Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. Competing with other real estate pros
The majority of qualified buyers are working with experienced real estate professionals. In fact, most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
8. Questionable legitimacy
Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. Higher broker fees
Expected savings in broker fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
10. Higher lawyer fees
If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.
11. Restrictive access to important real estate market information
Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
12. Lawyers aren’t there to mediate
Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually have problems closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced Toronto real estate professional, can be the most important. Your Realtor can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.
If you want to see an experienced Toronto real estate agent’s selling process, click here to read what it should encompass. If you would like to further discuss how a real estate agent is more beneficial than “For Sale By Owner” contact me at firstname.lastname@example.org