1: OPEN HOUSES DON’T WORK AGAIN
The open house is designed to provide potential buyers with a platform to view properties for sale.
Several years ago, when houses and other dwellings were to be sold, buyers were usually invited to come, see and make a choice to buy. In this modern age of technology, buyers do not need to be physically present to make a buying choice.
Nowadays, pictures and videos of properties to be sold are just posted online for buyers to see.
Real Estate agents exploit open houses to their own selfish advantage by using such avenue to gain their own clients rather than actually selling your house for you.
2: MARKETING IS A JOB NUMBER 1
To get prospective buyers for your home or any other dwelling for the highest price, you will need a Realtor, whose job is to help you with the marketing. Marketing is important in making a sale in the Real Estate sector. Realtors that do not market your property for you do not deserve to earn their commission.
A property vendor should:
- Only hire someone who is a qualified Realtor to help sell his home;
- Distinguish between Realtors and Real Estate Agents – Real estate agents are not licensed to list your home on the Multiple Listing Service (MLS), a suite of services that real estate stakeholders use to disseminate information about Real Estate deals.
- Only employ a Realtor that is able to make use of the internet to market your property;
- Make your Realtor to do the S.W.O.T analysis of the property market for you;
- Determine if your Realtor works full-time, and the years of his experience;
- Call for the listing of properties your Realtor has sold successfully.
- Be aware that for monetary benefits, most agents try to deceive you by claiming to promote your property on the internet before the highest bidders;
- Know that no agent is doing you any special favors.
3: DISCOUNT BROKERS/LIMITED SERVICE BROKERS CAN BE A GOOD CHOICE
Regardless of what the industry experts think, engaging the services of discount brokers/limited service brokers will help reduce your expenses especially on full-time Realtors, in finding probable buyers for your property.
As their title suggests, you can save for yourself a lot of money hiring specialized agents to handle several aspects of the process of selling your property. They undertake a high volume of tasks and spread the cost.
* Home Price = $120,000
* 3% commission (Listing Side only) = $3600
* Minus Firm Split (35%) = – $1260
* Minus Taxes (25%) = – $900
* Minus marketing = – $800
* Leaves a net commission of $640, to the agent
The agent takes a cut of the commission (in many cases 30-50%).
How much time can you reasonably expect them to spend on your behalf selling your home If the agent only gets $640 on the deal?
Real Estate is a business, and agents are people who rely on that business to pay their own bills.
Considering that using a limited service broker could save you up to $2000+, the reasonable thing to do will be to engage the service of one.
Scenario 2: You are in a super hot market.
The Real Estate industry can be a highly lucrative and competitive business.
There will be no need for the services of full-time agents if there is a boom in the market.
Once your property becomes available for sale, engage an agent who places your home on the local MLS system and buyers will definitely show up.
If your buyer’s agent presents you with a contract, consult another agent or a lawyer to help interpret the details.
4: ALL AGENTS ARE NOT CREATED EQUAL
When you want to sell your house, do not compromise professionalism and competence in selecting an agent. Different agents have their area of competence.No two agents are the same.
So ahead of selecting an agent, request that they send you the contracts ahead of time, and prepare a set of questions for them to answer.
* What is dual agency?
* Do you practice dual agency?
* What is the difference between due diligence and earnest money?
*What happens if a buyer cancels the contract?
* Am I required to do repairs on my house, or is my home sold as it is?
* Can I be shown the marketing plan for my home?
5: SOME AGENTS WILL TRY TO “BUY THE LISTING.”
Although, most agents deny engaging in “Buy the Listing”, but some of them try to convince homeowners they can sell their home for a price above the market value. After signing the listing agreement, agents desperately want you to sell your house at inflated rates.
When a house is over-priced, it may be unsold for months.
Before long, prospective buyers are turned off and it may eventually suffer price reduction.
Agents always want to “buy the listing” because of the immediate benefits, but a house-owner should not encourage this.
6: FOR SALE BY OWNER (FSBO) HOMES DOES NOT SAVE MONEY AND TIME
Some homeowners try to sell their property without the help of agents. Those who do so try to avoid paying a hefty commission. But the job of prospecting for buyers can be very difficult which is why the need for the services of real estate agents is essential. Agents cannot do this job for free because they have bills to settle too. So, as a buyer, if you are doing business directly with the owner, you need to determine who pays the commission.
This is necessary so as to ensure the burden of commission payment is evenly spread.