Inside Scoop Home Seller London Ontario

There are quite a few discount real estate brokerages and for sale by owner companies now promising to sell your home, some for as low as $450!

 

The proposition of saving thousands of dollars is enough to catch the attention of anyone. It awakens the entrepreneur inside some of us.

The burning question private sale companies use as their hook is why you would give profits from your home sale to a Realtor if you didn’t have to?

If you are trying to decide between giving that licensed & regulatory controlled Realtor thousands of your dollars or selling your home yourself because some do it yourself real estate company says its a snap, then take a moment to learn some cold hard facts.

 

There are quite a few reasons why 96.8% of homeowners in Canada choose to use a Realtor when they sell.  I’ll share some facts and some myths with you, but please don’t just take my word here, do your research and verify what I am telling you for yourself.

Myth number one: Realtors will charge you a standard 5-6% commission to sell your house.

Fact: Most for sale by owner companies base their selling pitch on the notion that real estate companies will charge you 5- 6% to list and sell your home.

Real Estate sales are one of the most competitive industries there is. The seller set the choice of services and fee packages offered by Realtors in London, Ontario and the last word on commissions. If you can’t agree on compensation with one Realtor, there are over 1900 more you can approach in London, Ontario and the area.

There is no such thing as a standard commission.

Myth number two: “Selling your house on your own isn’t as difficult as most Joe Schmo agents make it out to be” (a direct quote from the website of the non-licensed PropertyGuys.com)

Fact: Less than one in five homes listed privately actually sell. Whereas over 95% of homes listed with a Realtor sell. Listing a home is as easy as banging a sign into the lawn, but it is only a first step.

Myth number three: Selling privately will always save you money over using a Realtor.

Fact: If you are listing privately in a seller’s market and or have time to wait it out, eventually, you should see offers coming your way. Every buyer that comes to you will also be looking at homes listed with Realtors, or else they believe there is a financial advantage to be had in buying a private listing.

Most buyers who hunt out private listings do so because they believe you are saving money in commissions and can discount their offers accordingly; they assume they are dealing with someone who is not a professional negotiator of real property, and chances are they know the area market better than most private sellers do.

Private sellers become quite familiar with and often weakened over time by this breed of buyer. The longer it lasts, the better the chance to take advantage. If you have listed privately in the past, you know what I am talking about. A good percentage of successful private purchases are from these buyers. Often, the difference between the original list and the final sale price is higher than the buyer’s commission costs believed they would be saving themselves.

Note: Yesterday, I just finished listing a house that was a For Sale By Owner, and this lovely couple tried it for 56 days! The sad part was they had to pay $495.00 upfront to get all this sign and marketing stuff!

Realtors don’t get paid until YOU sell your home.

And to top it off, they had 26 Realtors contact them about if the house did not sell, to list with them! ( That 26 was 14 more than the 12 people who did want to see their home! Hmmmmmmmm! Something wrong here!)

 

Myth number four: Any money you can save on Real Estate commissions = cash in your pocket.

Fact: If the last myth bust wasn’t convincing, then consider these facts: Marketing to the degree of most licensed  Realtors does not come cheap. Prepare to spend at least a bare minimum of $200 a week and resolve yourself to the fact that your advertising will be relegated to the classifieds along with the used bicycles and outdated computer equipment where few serious home buyers will ever look.

You could also do Kijiji, which is free. But what about Realtor.ca, which every house on MLS is listed, and 100% of all buyers go to to check out homes for sale, and Realtor websites, both their personal and their brokerage’s site.

Also, be prepared to market your home for a much more extended period than a Realtor would need to. Your most effective selling tool will be the sign on your lawn and the open houses you do, but keep in mind that of all properties sold through licensed Realtors, about one in every ten is the result of a sign call.

The other 9 out of ten come through buyers introduced to the property by their REALTOR® and professional marketing efforts.

All closings require legal documentation, the search of title, transfer of funds, closing existing mortgages, and assignment of new mortgages just for starters. Proper documentation and legally acceptable contracts safeguard both the buyer and seller and without a Realtor, you are the one who is responsible should complications arise. All that documentation a Realtor handles for your sale will be left to you and your lawyer and comes at a price.

Realtors carry Errors & Omissions Insurance to protect sellers and buyers in the event of a mistake, misrepresentation or unforeseen discrepancies and deficiencies relating to the property. Individual homeowners do not. An error in the property’s square footage or some other detail or event often leads to litigation, or the sale is delayed or not at all.

A single mistake could end up costing you far more than a real estate commission.

You can bet that I hear by those who will say this is fear-mongering, and they have never had a problem in all of their private sales. The ones who have had issues likely won’t give you the benefit of their experiences here.

Other advice & things you need to consider as you make your decision to list privately are:

Make yourself available for the next few weeks –  Many showings are booked at the last minute, and though often frustrating from my perspective as a Realtor, we have to accommodate this. It’s kind of like being a firefighter on call.

Many will see you are listed private and knock at your door, expecting to come in and view your house on the spot. With the number of listings available to see, you want to accommodate showing request or risk them crossing you off the list and moving on to the next home.

Good Realtors screen buyers before taking them through a home. You may have to compromise precautions as your agent, but here is some valuable safety advice for private home sellers:

·        During open houses, take people’s names and phone numbers at the door before allowing them into your home. Write down their license number and type, and the colour of the vehicle.