In today’s market and with the ease of access to the internet, many homeowners consider going it alone and selling their homes without the help of a REALTOR™ to save the commission. However, once they realize how complex and intimidating a real estate transaction can be, many people reconsider and enlist the services of a REALTOR™ to guide them.
In reality, a for-sale-by-owner transaction usually doesn’t result in the cost savings the homeowner or even purchaser may have hoped for. After all the 4-6% commission cannot be saved by both parties and yet both parties feel that, as there is no Realtor involved they should be saving it. In addition, according to statics gathered by the national association of Realtors the average private sale, that does successfully complete, sells for an average of 13% less than a similar property that sold using a Realtor. Most often, for-sale-by-owner translates into discount for potential homebuyers.
Of the approximately 3% of transactions that did successfully sell privately more than 35% sold to people they already knew, meaning that very few sellers successfully sell to a “stranger buyer” and when asked more than 50% said they would never try to do it again.
As a Realtor, I know you likely have a friend or a neighbour who sold privately and got a great price with no hassles but remember, that no one brags about a “failure” so if they did not get the price they wanted or it cost them a lot more in closing cost due to a failure to disclose an item, they are not going to tell you. Perhaps they did get an appraisal and got a sale price at market value…that makes them part of the small group that are successful …will you be?
Do you have the time?
A REALTOR™ provides many services including identifying your needs and wants, helping to set a listing price within current market guidelines, developing a marketing plan, offering tips and advice to make your home more attractive and saleable, and acting on your behalf during negotiations to ensure your interests are protected. Even if you had the time to do all this yourself, how much would you really save when you factor in the amount of time you’d have to invest. Another advantage of working with a REALTOR™ is the far-reaching market exposure your home will receive through the Multiple Listing Service (MLS). The greater the exposure your home receives, the more likely you are to find a buyer willing to pay your price.
A REALTOR™ has vast amounts of real estate knowledge and the experience required to stay cool, even in a hot real estate market. In Ontario, a REALTOR™ is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). When you work with a REALTOR™, you can expect strict adherence to provincial law as well as to a code of ethics ensuring you’ll receive the highest level of service, honesty and integrity.
Setting a price
One of the most important services a REALTOR™ will provide is helping you determine the asking price of your home. This is an area that requires extensive knowledge and training as well as access to sophisticated market analysis and knowing the current sales prices of comparable properties. Most do-it-your-self sellers lack these resources and end up guessing at their price. If you set your price too high, many prospective buyers will be frightened off without even looking at the property; too low, and you could miss out on thousands of dollars.
Selling your home is not a simple procedure. It involves large sums of money, stringent legal requirements and the potential for costly mistakes. A REALTOR™ is committed to spending the time it takes to help you sell your home in the least amount of time and for the best possible price.
Some of this information came from the Canadian Real Estate Association
Please call me if you have any questions or would like to meet with me to discuss working together:
Lester Johnstone | ROYAL LEPAGE LAKES OF MUSKOKA | Bracebridge