7 Private Seller Pitfalls - Do Sellers Save Commission

Private Seller Pitfalls

For most people, their home is their biggest asset, and therefore it is understandable that they want to sell it at a decent price. However, many homeowners live with the misconception that as a private seller, they will obtain a better net price.

Private Seller

If you are a private seller and miss one of these items, will you really ‘save' anything?

This simply is not the reality for most homeowners as there are many factors to consider. For one, most homeowners do not know how the process of putting a house up for sale works.

Besides the fact that real estate sales can take a long time if you don't have the expertise, it can end up costing you more than the REALTOR®‘s commission you are trying to save.

Proper Market Evaluation

A professional REALTOR® has had his/her fair share of home evaluations, and they have seen it all. The actual prices of homes in certain areas are, most of the time, different from the asking price that one can find online.

Someone who is not a REALTOR® will rarely have access to information on the actual selling prices. Therefore, if you are hiring an estate agent, he or she will know what the real numbers are for your house in your specific neighbourhood.

Factors like the neighbourhood will also influence the appraise of your home. A professional real estate agent will recognize the qualities (good and bad) of your home as well as take into account outside factors and from that come up with a suitable price for your home.

If, on the other hand, you decide to sell your home yourself, you risk pricing it inaccurately. If, for instance, you sell your home for too little, you will end up giving your buyer a huge deal.

Alternatively, if, for instance, the asking price of a house is higher than what it is supposed to be, your home might end up being listed for too long. A house sitting on the market for ages might scare prospective buyers away as they would think there is something wrong with the house. In general, the shelf life of a property is about 4 to 6 weeks.

Bo Kauffmann Real Estate Agent Winnipeg

Understandably, some homeowners would want to price their homes at a much higher price because they might have some emotional attachment to it. But if you want to let go of that attachment, the price needs to be right. The best way to do so is to have a professional take care of it for you.

Get a Reality Check on How Your Home Looks

A REALTOR® will be able to tell you what the buyer wants. At the end of the day, the estate agent wants your home to sell as much as you do, so they will make sure to meet that goal by working with you.

Even if you put in the effort by researching how to sage your home, it might not look as good as if it was done by a professional.

It is not enough that a home looks homey when it comes to selling. Staging one's home requires placement, sight-lines, and psychology to increase the appearance of the space, which can help the buyers picture themselves in the house.

Your real estate agent might suggest some decor changes as well. Or, if you want to take it a step further, he/she can educate you on how specific general contracting projects can increase the value of your home.

By hiring a REALTOR®, you will get some honest feedback about the look of your home and some excellent tips and help along the way.

Have The Marketing Done Right

Marketing a house takes a lot of work, and it can be very time consuming as well if you do it yourself. There are many things needed to market a home successfully. For one, professional photos of the house will be required for the listing to attract potential buyers.

Listing a home on one platform is also not enough, as this is not an effective strategy. Ads will be needed for various online sites and newspapers as well. A real estate agent will also be able to list your home in places where private home sellers can not, like the Multiple Listing Service.

Another benefit of choosing a REALTOR® is that you don't have to worry about buying your own “for sale” sign and sending out promotional fliers with your contact details.

Marketing takes time, and in some areas, it might also cost you money, so to make life easier for yourself, it is best to let someone else handle the marketing section.

Effective Organization

Showing your home to prospector buyers is the realtors' job, and therefore he or she will be able to do so whenever it is needed. Most people with jobs and families will be requesting unpleasant times to see your home and not to mention it might be over weekends as well.

If your home is getting sold through a real estate agent, you will not have to worry about organizing showings and communicating with buyers.

Also, it is crucial to know whether the potential buyer has the financial ability to buy your home. REALTORS® will be ahead of the game in this department as they will request the buyer to provide them a letter from the bank or lender that shows how much they are approved for. A credit check is another thing realtors do to make sure that the people they do the showings for are serious and ready to buy.

Hiring a REALTOR® also assures that the negotiation and sale go smoothly as they know how to talk to the buyer without scaring them off. Other tasks include finances, inspection, legal paperwork, and mortgage papers to take care of. Estate agents already know all the procedures that need to be made and will take care of them sufficiently.

Saving Buyers Agent Commissions

Private Sales companies often (and in error) advertise that the seller can ‘save the commission'.  This is often not accurate.

In some cases, the buyer as well will have an agent. If a homeowner sells their home on their own, it means that they will have to pay the buyer's agent a commission on the homes sale.

If paying a buyers agent is also not something you want to do, then you can expect that your home will not be shown to those buyers who work with an agent, which means fewer home showings.

On the other hand, if you work with a listing agent, you will set this buyer agent commission up front, and will be able to work it into the price of the home.

Private Seller Summary

As you can see, hiring a REALTOR® can have many advantages. Even though you need to pay a commission, you will rest assured that your home will be sold at the right price in a decent time frame.

Covid-19 Reality Check!

While many home sellers and home buyers might be putting their plans on hold due to the current Covid-19 pandemic, REALTORS® are still trying to stay up to date about what is going on in the real estate business in their area.

Real estate agents are taking all the necessary precautions that are needed during this time. This means that even during this pandemic, you can still contact an estate agent if you wish to sell your home in the near future. Not only will they know all the regulations during this time, but they will take the right safety measurements where needed and have a better marketing strategy during this time.

Once the pandemic stops and regulations get lifted, the peacefulness will subside, and home sellers everywhere will be rushing to get their homes sold. Therefore it is better to contact a realtor now and get ahead of your competition.

About Mattea Jacobs

Mattea Jacobs is a freelance writer who mostly writes about both interior and exterior home design, and environmentally-friendly ways to improve homes. She is also a green activist and a mother of two beautiful sons. You can reach her on Facebook and Instagram.

Private Seller Pitfalls private sellerAbout the Publisher

Bo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals.  Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market.  He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist.   Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages.   He can be reached easily   By E-Mail or call/text him   Call/Text Here

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