Reasons Why a Private Sale Could End up Costing you More Money
For Sale by Owner.
You’ve surely seen these signs before.
Of course, we all want to save as much money as possible when selling our homes, but is selling it yourself really the best way to do it?
What most people don’t realize is the thousands of dollars they miss out on by trying to do it themselves.
How? When you chose not to use a Realtor, you lose out on a MASSIVE pool of potential buyers. We all know that price is driven by supply & demand. The more demand for your home, the higher the selling price.
So if you’re selling it yourself, how do potential buyers find your home?
Maybe you posted it on Kijiji or Facebook Marketplace. Sure, the internet is available to everyone, but most serious buyers have hired a Real Estate Agent. And, that Agent has done a thorough job of making sure their clients are qualified. This means anyone coming to view your home is likely a serious candidate.
Of course, not all of those buyers are the right ones for “your” home.
But, if you choose to sell it yourself, you lose a huge piece of this puzzle. Realtor’s place listings on the the MLS system, which includes the public site realtor.ca. They also promote properties via print, online and social media channels. You’d miss out on all of this.
Most Realtors are working with at least 2-3 buyers at any given time. So, if there are 50,000 Realtors in the province of Ontario, all working with at least 2 buyers, that’s a pool of 100,000 buyers looking for a home with a Realtor at any given point, are of whom are using MLS (and consequently realtor.ca).
And, even if given the chance (if they happen to stumble across your property) it is unlikely that a Realtor working with a serious buyer would be open to showing your home if you’ve chosen NOT to co-operate with a Realtor. Why? You’ve cut them out of the equation!
All of this combined leads to a loss of a HUGE potential pool of buyers. The only likely way someone might find your home would be through your “For Sale” sign placed on the lawn, or through whichever online avenue you’ve chosen. These avenues likely won’t contain a large pool of serious, or qualified buyers.
This leads to fewer showings, less competition, and of course, a lower selling price if you are lucky enough to receive an offer.
Trying to do it yourself could end up costing you THOUSANDS– perhaps more than the commissions themselves.
So, if you’re thinking of selling your home, look beyond the commissions. Rest assured that the amount you could save yourself in commission is MORE than made up for in the eventual selling price, provided you’re open to following the professional advice of your Realtor, and also employing a great pricing strategy.
Not to mention, when you work with a Realtor, you also have access to all of their professional services that would be included in a listing, like photography, open houses, print, and online advertising, etc. And this is all in addition to their extensive knowledge of the real estate market.
I hope you’ve found this information useful when trying to decide whether you use a realtor or not. You might get lucky with a serious buyer right away, but in most cases, a property listed for sale by owner will sit on the market for a long period of time and will rarely get the top dollar you deserve.
My advice? Interview at least 3 Realtors when thinking of selling your home. Find one you know, like and trust, and that you’ll feel is working in your best interest. Watch out for those who tell you what you “want” to hear, just to get the contract but are unable to deliver on unrealistic promises. Selling your home is a BIG deal and you need to make sure it is done with the utmost professionalism and integrity. After all, it is likely the biggest asset you’ll ever own.