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Do it Alone, or Use a REALTOR®?
The fact is, most people who try to sell their own home end up using a REALTOR® in the end anyway. Before anybody decides to fly solo through this complex, time consuming and financially perilous process, they should consider these questions.
Will you really “save” the real estate commission?
When buyers see a home for sale ‘by the owner’, they see a bargain. They imagine the REALTORS® fee going into their pocket, not yours.
Are you familiar with real estate law?
Complicated and ever changing, real estate law governs nearly every phase of selling your home.
One wrong move and an entire deal can fall through, or worse, a lawsuit can ensue.
How many potential buyers will you reach?
Selling a home takes more than just hanging a “For Sale” sign. How will you promote your home? Will you write your own ads? How will you use the Internet, knowing that you’ll have no inside access to Ontario MLS system and therefore will not be able to post your home on this service?
Do you have the time?
Promoting a home is a full time job, and you may already have one. Will you be able to take calls at any time? How about screening the callers to figure out if they’re qualified to buy your home?
Not everybody who calls is even suitable to walk through your home, but how do you tell?
Do you know the market well enough to get the most for your home?
Lacking years of experience, the average do-it-yourselfer is merely guessing at their listing price. Often they set the price too low and miss out on thousands of dollars, or they price their home too high and drive away willing buyers.
What about your selling skills?
If the personalities of prospective buyers rub you the wrong way, can you still deal with them effectively? What about your own defensiveness when you hear negative comments about your home? Best to keep it at arms length through a REALTOR®.
Do you have the negotiation skills to keep a deal on track?
When an offer comes in, emotions can run high with so much money on the line. This is why direct seller-to-buyer deals often end in disaster. REALTORS® keep it professional and are indispensable when it comes to bargaining with buyers.
How to Choose a REALTOR® ?
There are many reasons why a REALTOR® is essential when selling your home but which REALTOR® is best for you?
Your REALTOR® who helped you buy your current house is a good start.
Sticking with a REALTOR® just makes sense. If they did a good job helping you buy your home, they’re probably the best candidate for helping you sell it. They already know the home inside and out, and they know you, so you’ll save time two ways.
Think locally.
Write down the names and numbers of REALTORS® on the “For Sale” signs in your neighbourhood. Maybe your local friends or nearby family have a REALTOR® to recommend. You can also visit one of your local real estate offices; it’s guaranteed they’ll know your area.
Should you choose the REALTOR® who suggests the highest asking price for your home?
Ask what method they used to assess your home’s market value. How was your home compared to other homes in your neighbourhood that have been sold recently? Step 5 will give you a better understanding of listing price and how it affects the sale of your home.
Interviewing candidates.
Don’t be afraid to ask questions, or screen a few REALTORS® before deciding. Make sure you feel comfortable with them and that they show a genuine interest in helping you. Here is a list of questons you can ask potential candidates :
1. How long have you been in the business?
A freshly-licensed REALTOR® can do a wonderful job and will have up-to-date training; those in the business longer bring more practical experience to the table.
2. What is your average list-to-sales-price ratio?
A competent listing REALTOR® should hold a track record for negotiating sales prices that are very close to list prices.
3. How will your marketing plan meet my needs?
Specifically, how will you sell my home? Where and how often do you advertise? Will you show me a sample flyer? How do you market online?
4. Will you provide references?
Ask if any of the references are related to the REALTOR®. Ask if you can call their references with additional questions.
5. What separates you from your competition?
Key phrases to listen for: assertive, available by phone or e-mail, analytical, professional, reliable, and able to maintain a good sense of humour under trying circumstances.
6. May I review documents that I will be asked to sign?
A good REALTOR® makes forms available to you before you are required to sign them. Ask to see agency disclosure, the listing agreement and seller disclosure.
7. How will you help me find other professionals?
Ask for a written list of referring vendors. Get an explanation if you see the term “affiliated”. It could mean the REALTOR® is getting compensation from vendors.
8. How much do you charge?
You don’t have to ask if the fee is negotiable, since all real estate fees are negotiated. It may be a good idea to ask what their commission fee is for your reference.
9. What kind of guarantee do you offer?
If you sign a listing agreement with the REALTOR® and later find that you are unhappy with the arrangement, will the REALTOR® let you cancel the agreement?
10. What haven’t I asked you that I need to know?
Pay close attention to how the REALTOR® answers this question, because there is always something you need to know--always.
Not Yet Convinced? Take a look at ‘The REALTOR® Oath’ to learn how a trained REALTOR® helps sellers and buyers achieve their targets.
