When ‘Selling Privately’ is the right thing for you
Let’s face it: hiring a professional real estate agent may not always be the best option for YOU. So when is ‘selling privately’ the right thing to do?
You might be a Private Sellers if…
1) You’re in no rush to sell
Maybe you don’t need to sell within the ‘average’ time-frame of 30 days. You don’t have another home lined up, and taking 3 months, or longer, doesn’t bother you. If that’s the case, going privately may be a good option.
2) You want to sell for ‘above market value’
So a REALTOR® thinks your home is worth $370,000 but you want (or need) $420,000? Perfect reason to go it alone, and hope the potential buyer doesn’t have a real estate agent either. Best not to let reality get in the way!
3) You really, REALLY love having Open Houses
The fore-most marketing method of private sellers is to hold Open Houses. Doesn’t matter that the vast majority of open house attendees a ‘tire kickers’ suffering from low-motivation syndrome. Get them in the house, it’ll make the owner feel good. (Hey, the 1980’s called….. they want their Open-House-Signs back)
4) You’re NOT worried about security
In a recent article, one real estate agent put it best:
Think about it – is there any other circumstance under which you would invite anyone at all to traipse through your house, eye your possessions, observe your calendar and note the type and location of your alarm system Read more here
Your personal phone number is on the front lawn, and on various websites. You have no idea who is coming thru your front door or what their intentions truly are?
Yet as a private seller, you open your door to anyone who feigns interest in your home.
5) You still believe in the myth that you can “save the commission”
And it IS a myth: I know a couple whose home had been valued in the high 380-390 range, but they tried to sell it privately for $415K. Price drop followed price drop, and after 1 YEAR they sold for $355,000. Did they ‘save’ anything? In addition to giving away 10’s of thousands, they also lost one year of taxes, heating, insurance, lost interest-earning for their money, etc.
6) Your home has some hidden structural issues
Got a large horizontal foundation crack that needed covering up? Or maybe it was a ‘Grow Op’? Attic filled with unsightly mold? A REALTOR® is just going to ask you some uncomfortable questions, so why take the chance and get caught in a lie: Selling privately is the way to go in this situation.
One added piece of info
Today, (June 16th, 2015) there are 2,086 homes (not including condos) on the MLS ® market in Winnipeg. 180 of those are Private Sellers. That represents 8.6% of the total.
Yet in the past 31 days, of the 764 homes which have sold on the MLS®, only 21 (twenty-one) have done so without some kind of involvement of a licensed real estate agent. That represents only 2.75% of all sales.
Summary: Private Sales (with no REALTOR® involvement) are about 1/3 as successful as a fully represented seller. Coupled with the inconveniences listed above, is it a good option for you?
As a licensed real estate agent, you would expect me to take this position and consider me to be biased, and I understand that. However, it’s hard to argue with the facts.