Yay! I Found My Own Buyer!
In this current market with low inventory and rising pricing, we are hearing more and more tales of those who have been approached by buyers to purchase their homes privately.
Many times this is happening when the seller hasn’t been actively considering selling. This is typical in a market where inventory is low in certain price ranges, and likely will continue throughout this year.
The possibility of saving the real estate fees is attractive to many, which is typical and understandable.
However, there are numerous pitfalls unsuspecting home sellers should be aware of, and are outlined below.
Selling Too Low:
In a rising market, a seller not in tune with the current market may easily undersell. The current market is changing daily, especially in key locations. Relying on a tax assessed value, or even an evaluation done by a real estate salesperson a few short months ago, is likely already behind current market values.
Contract law has become extremely complicated when it comes to real estate. Having a poorly written contract can lead to a lost sale at the eleventh hour or worse, a trip to the courthouse after the fact.
Negotiating on one’s own behalf is a difficult endeavor, and even more so when their largest investment is on the line. If you are not a trained negotiator, it is tough to get top dollar for your home, especially if the buyer is a tougher negotiator than you are.
Having a third party to negotiate on your behalf is invaluable when it comes to real estate.
Although saving the fees is an attractive option, if one ends up netting less in their pocket while doing all the work themselves, their mission has not been accomplished well.
There is always turbulence in real estate sales, and navigating through it is not for the faint of heart. Always contact a professional for advice when dealing with the equity in your home – the risk is just too high.
Hiring a real estate professional who knows the day-to-day activity in the immediate market area will almost always bring a better result.
How do you choose your listing agent?
Everyone knows a realtor, especially in a smaller city.
Some may know numerous salespeople — a friend of a friend, someone they knew from high school or maybe it’s their wife’s co-worker’s husband.
Many people hire a realtor because they know her, or someone they know, knows them.
I would caution you to do more research, and take more care in your decision because it is one of the most important you will make. Your home is likely your largest asset. Don’t entrust its sale with just anyone.
When selling your home, most sellers want three things:
- to sell their home for the most money
- in the least amount of time
- with the least amount of hassle.
When hiring a real-estate professional to market your home, there are also three important things to consider when making this choice.
Exposure: A realtor’s marketing plan is extremely important, as this will determine how many eyes see your home. The first sign of a good marketing plan is one that has a balance of print and online marketing, with a reach that goes outside the local area.
The more people viewing your home online, the more showings you will get, and generally the more offers (assuming other factors are in order such as price, etc.).
Negotiation expertise: When you get an offer on your home, it’s important to have the best negotiator on your side. Dealing with offers can be a stressful time, especially if you are involved with a multiple offer situation. You need cool heads to prevail.
The best way to know if a realtor is a great negotiator is to ask him for his personal statistics that provide proof of how close his listings sell to his list price.
Local knowledge: Knowledge of listings that have sold in your area is imperative to setting the right list price, as well as knowledge of how to adjust your list price based on the current rising market. A price too high and your home will sit on the market for too long, usually netting less money in your pocket at the end of the day.
A detailed market evaluation to determine your list price is important.
Analyzing the above factors when choosing a listing agent will help you make the best decision and ultimately net you more money in your pocket when your sale completes.
Take the time to do your homework and ensure you treat the decision like any other business decision – not a personal one.
How important is a good — let’s rephrase that and say great — marketing plan in selling your home?
In reality, the marketing plan is everything. If sticking a sign up on your lawn or putting your home on the MLS were enough, realtors would not exist. And if they did, they certainly wouldn’t be spending any money on marketing the homes they have been hired to represent.
Of course, you can sell a home without marketing. It happens. However, it’s not just about selling your home at any price. Anyone can do that. It’s about selling a home for all it’s worth.
Anyone can give a product away – however only a true sales professional can sell it for top dollar, in a reasonable period of time, and with the least amount of hassle.
The key to selling for top dollar is exposure.
This is not only true in real estate, but with any product or service. The more buyers you can attract, the more competition among buyers and the higher the price. Or, the more volume you sell, depending on your ultimate goal.
Since every home is special – the big box volume selling does not or should not apply.
The more expansive the exposure for your home, the more buyers are attracted. The more buyers who are attracted to your home, the better opportunity you have to attract more than one buyer at a time – hopefully generating what seller’s desire most: the multiple offer.
Even if multiple offers are not achieved, with more exposure you still have a better opportunity to attract that one perfect buyer who wants your home very much and is willing to pay a good price for it.
Either way, the seller achieves the desired result: selling for more money, in less time, with the least amount of hassle.
Statistics show that by listing your home with a qualified real estate professional, you will net more money in the pocket at the end of the sale than by selling your home on your own.
Furthermore, hiring a realtor with a poor marketing plan may return similar results. It’s all about the exposure. When choosing your realtor, ensure they have a solid home selling system that returns consistent, trackable results.
Your home is likely one of your largest assets – ensure you entrust your home's marketing and ultimate sale with a full time, full service professional and get the return on investment you deserve.
Should I Buy a House Sight Unseen?
Generally, the regular process of purchasing a home is for a buyer to view it, make a purchase decision and go through the offer process.
Some buyers are, however, willing to take the risk of purchasing homes without seeing them first.
For a variety of reasons, these buyers and investors are willing to skip the regular buying process, relying instead on MLS descriptions, Internet photos and virtual tours.
In some situations, the buyer is looking for something so specific that in a fast-moving market similar to what we are seeing in the Okanagan right now, the buyer may not have time to jump in the car and drive for six hours or purchase a plane ticket before other offers are already being submitted on the property.
If they need to act fast, sometimes putting in a sight unseen offer is the only way.
Although this is something our team does not generally recommend, there are some ways that you can protect yourself should you wish to make an offer without viewing a property first.
The first way is to write an offer “subject to viewing” or at the very least have a friend or family member view on your behalf. This way a buyer may generally have anywhere from a few days to a week to view the property, while securing their offer is in first position.
If there are multiple offers on a property, this strategy may not work as it is at best a “maybe” offer for the seller, however it is the only way to truly protect yourself as buyer.
Another option is to write an offer “subject to approval of a professional home inspection." A thorough home inspection will inform the buyer of any major issues with the property and offers a buyer another level of protection.
Lastly, the buyer can enlist the services of a trustworthy, full-time, professional realtor to do a walk through of the property using technology to point out the good, the bad and the potentially ugly.
Facetime, Skype or even a thorough walk-through video can speak volumes and will help protect the buyer from any unsuspected surprises.
However, a personal walk through is the only way to be certain that you love the house, the yard, the neighbours and the area.
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- For sale by owner Oct 9
- House-selling secrets Sep 10
- Watch for red flags Jul 10
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- House won't sell? Mar 13
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