Thursday, April 11, 2013

For Sale By Owner - The Dangers of Going It Alone and the Benefits of having a Realtor

Every once in a while, we all know someone who says "I'm going to do it myself."  In real estate, these are the types of situations as a buyer or seller that could get you into financial or legal problems if not done correctly.  We strongly advise against a go-it-alone strategy.  

A Realtor provides...

Research!
1)A Realtor can provide you with a comparative market analysis including recent sales data to help you accurately price your home.
2)What if your home does not sell quickly? Realtors can keep you up-to-date on current sales activity in your neighborhood, as well as new competing listings and any other factors that may be affecting sales such as new homes or foreclosures in the area. They can assist you with price adjustments as necessary. Sellers have no access to current sales data and would have to “blindly” adjust their price if their home does not sell quickly.  The public does not have access to recent sales data.
3)In terms of Buyer Research, Sellers do not have the ability to properly pre-qualify buyers before letting them into their homes.  Realtors can pre-qualify potential buyers to make sure they are qualified prospects before showing them your home.

Marketing!
1)For sale by owner listings are generally not listed on any major real estate listing distributors. Buyers will therefore not see a for sale by owner listing when shopping for homes.  This limits exposure by a large margin. Realtors also generally advertise in paper publications and on their own personal websites, generating additional exposure for your home.  For sale by owner listings are not listed in real estate magazines.
2)The high vast majority of the active listings are advertised on major real estate listing distributors. For Sale By Owner listings are not included on those sites. Buyers & agents are shopping the Internet to find homes—they will not see a FSBO listing!  We believe Trulia came out with an article that said currently the number of potential buyers looking online is at over 85% of the pool of buyers.

Negotiations!
1)Realtors are skilled negotiators and are well-versed in contract legal terminology. They can assist you in obtaining top-dollar for your home and negotiate contract terms that work best for you and avoid pitfalls you might not see yourself.

2)Sellers do not have access to local area contract forms whether it be HAAR, Marshall County, etc.
3)Realtors stay in contact with the buyer’s lender, agent, and title company after a contract is signed. 4)Realtors are crucial in helping to coordinate closing and ensure that all critical details are completed as agreed upon.

Overall, if we said it once we will say it over and over again.  You can let the Realtor become one of your closest allies, if you let them.  Trust in your Realtor and they'll take you far.

Today's Tidbit:  There is nothing wrong with interviewing an agent.  Some people go through four or five interviews before they find the right agent to represent them.  If you already have an agent then you know that you have to feel comfortable about who you're working with.  If you don't feel comfortable working with your agent, then you're already on a bad footing and could have some trust issues later on down the road.  Experience and their willingness to protect your interests are two of the top things you should look for in an agent.