So you want to sell your property.
You talk to local Realtors and discover that their commission for selling your property can be as high as 10%. On a $250,000 property, that’s $25,000 of your hard earned equity. You’re not ready to give that away. You may have accepted the fact that you will have to pay something to the buyer’s Agent, typically half the commission in order to get your property sold. You reason that by acting as the seller’s Agent, you can save half of that $25,000 keeping more of your property’s equity for yourself. Acting as your own selling Agent is surely worth saving that kind of money – or so you think. Here’s 6 reasons why you should think again:
1. Buyers Agent don’t want to show your property to their clients
In a FSBO deal, buyers know they are not dealing with a professional on the other end of the transaction. Most experienced brokers have been burnt in the past on a FSBO deal where the seller did not pay the full or any commission to the Agent who brought the buyer. Additionally, buyer’s Agents know how many people are involved in the transaction and that most FSBO sellers simple do not have the experience to negotiate with buyers, buyer’s Agents, attorneys, property inspection companies, appraisers and banks.
2. FSBO sellers do not have exposure to prospective buyers
Studies show that 92% of buyers search online for a property. The Cabo real estate market is not one where prospective buyers drive around looking for For Sale signs and call up the seller. Buyers are shopping on-line long before they even board their flight.
3. You net more money when using an Agent
Agents have a larger network than you do. Plain and simple. They have the relationships with clients and other Agents to bring the largest pool of potential buyers to your property. This means more demand for your property which translates to waiting less time to sell your property and getting top dollar for your property.
4. Its hard for you to keep your emotions out of the sale
Selling your property is emotional. It’s your property. Surely everyone else sees the value in your property. Can you see the flaws in your property? Agents are experts in what makes a property sell. They are able to point out flaws that you are oblivious to because you see them every day – and maybe you don’t view them as flaws. Agents know the changes you need to make to attract buyers and get the best offers. An Agent keeps you one step removed and makes it less likely to make mistakes such as overpricing your property, refusing to counter a low offer because your offended or negotiating under pressure because you have a deadline to sell your property. Prospective buyers do not like viewing homes when the owner is present – it’s awkward and uncomfortable and will likely result in the buyer keeping his real thoughts to himself. Additionally, if you decide to sell your property yourself, you will also have to deal with rejection every time a buyer’s Agent tells you their client is not interested.
5. It’s an Agent’s full time job to sell your property.
Can you get away from work every time someone wants to see your property? Can you take calls throughout your work day about your property? Do you spend the time that is needed to properly market your property? Do you have any experience in negotiating the sale of property? Can you tell if the prospective buyer is qualified to purchase your property or just a curious dreamer? Likely you answered no to these questions. A real estate Agent answers yes to all these questions and more. It’s a lot of work to sell a property and it’s a full time job.
6. Negotiating the sale is an art
An experienced Agent has negotiated many property deals and know all the games and warning signs of fickle buyers. Agents have experience in turning emotionally charged negotiations and inappropriate responses from sellers into counter offers. Agents also know the pulse of the market and what’s driving demand, which gives them the advantage during negotiations and ultimately nets you the highest price for your property.
The bottom line
Selling your property is probably going to be one of the biggest transactions of your life. You can try going it alone but using an experienced Real Estate Professional will ensure that you get the broadest exposure for your property, negotiate the best deal and dedicate the time and effort to your sale. An Agent brings expertise to a complex transaction with many financial and legal consequences.