For Sellers

1) Do It Yourself vs. Hiring a Realtor®

 

2) A Professional Can Balance All the Details

 

Do It Yourself vs. Hiring a REALTOR®

"Money talks," and I hear what it's saying. Some homeowners would rather try to sell their homes on their own rather than pay a Realtor to help them. That's understandable…but only logical if the value gained by doing it yourself exceeds the value of the services and outcome achieved by a qualified Realtor®.

Other homeowners may decide that going it alone is not an option because they simply do not have time to deal with everything involved, and/or they lack the knowledge and experience to price, market and show their home effectively and then see all aspects of the contract through to closing. 

Following are some factors to take into consideration when trying to decide whether to try to sell you home yourself or list it with a Realtor. (Please insert "R" symbol where-ever the word "Realtor" appears.) 

The Commission

Commissions are negotiable. That's the bottom line. Realtors® work for companies under the supervision of a Real Estate Broker (for example, I work for Re/Max Realty Group under the supervision of our managing Broker, George Sayers). I am fairly free to negotiate my rates with my clients as I see fit. Naturally, all agents and Brokers try to stay in the same general ballpark when setting/negotiating their fees...as do professionals in most every other line of work. Some Realtors now are offering a "menu" of services, or "unbundled" services; each level of service corresponding to a different rate.

Understand also, that the fee a Realtor earns for his/her work, which usually spans a number of weeks or possibly months, is split between this Realtor, his/her Broker and also the Realtor on the other side of the transaction. That is, unless the listing Realtor is lucky enough to find the buyer also.

Most often, though, when a property is listed in the Multiple Listing Service (MLS) it is another Realtor working with a Buyer, who "brings the Buyer" to the home for sale...The MLS is in fact the enactment of an agreement amongst area Realtors® to co-operate (and share commissions) when selling real estate on behalf of our respective Sellers.

In this way, with the enormous exposure and cooperation, homes have a much better chance of selling quicker. When a seller agrees to list with an agent and have his/her home entered in the MLS, the listing agent is agreeing to split his/her commission and the seller is in essence benefiting from the work of several, possibly hundreds of Realtors (because hundreds of Realtors are looking at the MLS daily, in search of homes for their Buyers).

If the listing agent is lucky enough to find a Buyer for the property before any other Realtor does, then often times he/she will give the Seller a discount, because now he/she does not have to split the fee with another agent.

Pricing the Home Correctly

This is undoubtedly the most important factor involved in selling a home. A good Realtor® knows the current market and can put together a "comparable market analysis" using "active listings," pending sales, recent sales and expired listings in your area to get a good idea of the price at which your home should sell in a reasonable time.

You want to receive top dollar, but you must be careful not to price your home so high that potential buyers begin to look past you, believing they can find something comparable or even better at a more reasonable price. There are several factors to consider when setting the price and it's always to your greatest advantage to do it right the first time! Realtors® have the most recent data and incidental information at their fingertips, software programs for putting together CMA's and possibly the advantage of having visited some of these homes along the way (this allows added insight for comparison purposes).

Knowledge and Experience

Selling a home is not as simple as it used to be. Knowledge and experience in the areas of contracts, disclosures, negotiations, inspections, surveys, mortgages and title companies can mean the difference between a transaction that is smooth and lucrative and one that is not.  The knowledge and experience that a Realtor® has gained through formal education and past transactions can be truly beneficial.

Marketing Capability 

In addition to the traditional sign in the front yard and an add in the classifieds, a good Realtor® will be able to offer you such services as: attractive brochures and flyers, tv advertisement on the local real estate channel(s), wide exposure through the Multiple Listing Service (MLS), a personal website that has been linked to several national and international sites used by home buyers...all enhanced with digital photography and virtual tours.

Time, Patience, Stamina:

Selling a home efficiently and effectively takes a lot of work. Not everyone has the time, patience and stamina to deal with this in addition to fulfilling other daily obligations. Your Realtor® is not only trained, but obligated by the Code of Ethics to work hard for you and your best interests, even when the going gets tough.

A Professional Can Balance all the Details

There are many things to juggle when marketing a home. These include:

1) Preparing your Home for Sale
The typical buyer looks at several homes before deciding upon the perfect place. The "first impression" is critical. Your Realtor® can provide you with some tips that you may not have considered and that may make a big difference in, not only that first impression, but ultimately the price you receive for your home.

2) Digital Photography

Keeping up with technology is a must in today's market. Buyers have come to expect quality brochures, virtual tours, outstanding advertisements and great internet exposure. Digital photography has become somewhat of a necessity and so I carry my camera with me at all times.

3) Custom Color Brochures
After a full day of looking at homes, a buyer will appreciate having something to refer back to that is attractive, colorful, has captured all the home's best features and includes pertinent information about the community. A good Realtor will create brochures, flyers and/or other creative marketing materials be displayed in your home, inviting the Buyer to "Take One."

4) Virtual Tours

This relatively new development in real estate marketing is one factor that separates those who are keeping with the times from those who are not. In today's market, where competition is fierce…it's a no-brainer. Buyers love to see great photos; not just wordy descriptions. Photos expanded into virtual tours are even more attractive and this added touch lets the buyer (and buyer's agent) know that this is a property worth seeing! If shown two similar homes on the internet, one featuring a virtual tour and extra photos and the other not, which of these homes would appear more interesting and "important" to you?

5) Multiple Listing Service

Your ticket to the 'Worldwide Web" is purchased here. When you list your home with a Realtor® you hire one person, but you also gain several others who actively work to sell your home. Our local Multiple Listing Service/Realtor Association has over 3,400 members and growing…How many of them may be working with a buyer looking for a home like yours? And that's just the beginning! Your listing will also be automatically uploaded to Realtor.com® the national network. Talk about exposure!

6) The Internet

According to the National Association of Realtors® (NAR), over one-third of all home buyers begin by checking the internet. That is why I have spent and continue to spend much time and energy on the creation and enhancement of a custom, user-friendly website for our real estate area. My intent is to keep this site fresh, enjoyable and up-to-date so that I may proudly promote it locally, nationally and even internationally, through traditional advertising and word of mouth, and by linking real estate powerhouses like "Realtor.com® " and to internet search engines.

7) Sign and Brochure Box

A yard sign and brochure box are instant identifiers for drive-by shoppers and others. The bright Re/Max Red, White and Blue sign stands out and lets buyers know the seller is dealing with a reputable company. Re/Max is a household name worldwide and in Lee County, our agents continue to sell more properties than our next two competitors combined! 

8) Key Safe

Allowing your home to be accessible for showings by other agents provides you with greater opportunity for selling your home. Serious buyers are more apt to call for a private showing than they are to wait for the possibility of an Open House. The Supra electronic key safe, leased by Realtors, provides security and makes private showings possible.

9) Newspaper, Magazine and Cable TV advertising

As your Realtor®, I will use my established accounts and desktop publishing skills to deal with these advertising needs.

10) Additional marketing through networking

In addition to getting the word out to other real estate agents via the MLS, an efficient Realtor may distribute e-postcards to other agents and/or host 'Broker Opens" (where real estate agents preview your home for prospective buyers). Also, after being in business a while, Realtors begin to network with each other and may be aware that "Realtor so-and-so" has a buyer looking for a home such as yours.

 11) Open House

Statistically speaking, the "Open House" is not as effective a method of selling your home as the MLS or other media. This is because the MLS and other media are widely visible 24 hours a day, versus driving by a property and happening upon an "Open House." But on days when buyers are out driving around looking for Open Houses, they are certainly worth the time and effort. There are several tips for making the most of this marketing opportunity.

12) Status Reports

Finally, status reports keep you informed of daily activity regarding the sale of your home. Included are such things as: scheduled showings, feedback on showings, inspection report information and other important dates and tasks to remember as we prepare for closing. A new feature is being added to my website whereby, once your home information and virtual tour is uploaded to the "My Listings" page of "Home Searches", you will have access to your personal status report on-line, by logging in with your password. If your computer is down, you can always receive this information by phone or fax.

Successful marketing will lead to great offers, followed by careful negotiations and meticulous closing preparations. Only after all parties have left the closing table with cash or keys in hand, and hopefully a big smile on their face…, only then can the juggler put away the last few pins. The applause? Well, that comes in the form of referrals to family, friends and acquaintances and perhaps even a request for an encore performance somewhere down the road!