Selling your Own Home vs Using a Seller’s Agent

If you have ever thought about selling your home yourself, I’m sure you have wondered what the positive and negatives points are compared to a real estate agent selling your home for you.

First let’s go over the positive reasons for selling a home on your own.

1.  You will not be giving a sellers agent a commission.

2.  You will meet any potential buyers yourself.  I’m not sure if this is a positive reason, but it might mean a lot to some home owners.

3.  You are in control of the entire process.  For those of you who like to have their hands in the entire process from meeting buyers to the negotiation process directly with those buyers, this might be a plus.

4.  You decide when to show the home and will be present for those showings.

Now, let’s go over the negative aspects of selling your own home.

1.  You pay for any advertising.  On top of that, you will not have access to the MLS which all agents have access to.  That means that instead of agents emailing their clients your home information when it appears on the MLS, you have to find the interested buyers yourself.  Agents are also more adept at only showing clients who have a definite interest in the features of your home.  You could have people looking at your home that aren’t pre-approved, are just window shopping or truly are not looking for what your home has to offer.

2.  You will need to understand all of the paperwork needed to sell your home.  It is also highly recommended that you hire an attorney to write-up the paperwork and make sure everything is included.  An attorney might be more expensive to use.  Another consideration is that an attorney doesn’t typically write-up paperwork to sell  homes as part of their job and might miss something along the way.

3.  If you aren’t available to show your home, your home won’t be shown if you sell it on your own.  When you work with an agent, it doesn’t matter if you are on vacation.  The home can still be viewed and an offer can still be made.

4.  Knowing what to price your home at.  Why waste your time if you price your home to high?  You also have to worry about what an appraisal will decide your home is worth.  You could get an interested buyer who is willing to pay the price you are offering.  If the appraisal comes back and is lower, the bank will not finance the buyer at that price.

5.  When a buyer knows you are selling a home yourself, they know you aren’t paying a sellers commission.  Because of that, the buyer will typically bid extra low to cover the difference.  Meaning you might still be out the same amount of money or more.

6.  If you don’t offer a buyer’s agent a commission, many real estate agents won’t be enthusiastic about showing your home verse a home that is similar with a commission included.  (Although this is ethically wrong, it has been known to happen quite frequently).

7.  It will take much longer to sell your home on your own.  This is because of the amount of advertising needed. Also, the less you are available to show your home, the longer it will take to sell.

8.  When you take into account fees for advertising and the lawyer, you might end up paying more money, than if you used an agent.

9.  You will have to make sure you understand the laws.  You aren’t exempt from getting in trouble for lack of knowledge.  You must understand the laws regarding who you decide to sell to and why.  You will need to understand how to get a clear title before the closing of the home can occur.  Some cities require a city inspector to view your home and there is a fee.  You must also understand that any defects in the home must be disclosed to anyone who views your home.  Not mentioning that there was a flood in the basement several years ago, for instance can result in a lawsuit if the buyer finds out after purchasing your home.

Many people try to sell their home themselves.  A good majority of these same people end up using a realtor after a lot of frustration and money spent.  If you decide to go it alone, make sure you truly understand what you are getting into before putting up a sign in your yard.

If you are interested in a consultation with Wendy McCance, you can contact her at:

Real Estate One

26236 Woodward Ave

Royal Oak, MI 48067 

248-414-1248 ext. 119
wendymccance@realestateone.com

http://www.wendymccance.realestateone.com/

 

Real Estate Agents are not Salespeople. We are Consultants.

When I decided to get into real estate, I figured that my background would be a perfect fit.  I have a strong history in the sales field.  I was really good in my field, and truly enjoyed the social aspect of a sales job.

When I took the classes and worked with a mentor, sales was what was discussed.  There were strategies and outlines.  There were even scripts you could use.  It wasn’t until I really got off the ground that I realized that sales has nothing to do with being a good real estate agent.

I’m sure there are agents out there that will argue that this is a sales job, but let me tell you why I think it’s not. My feeling is that if you are a good agent, you are not a salesperson but a consultant.  This is one of the few jobs where it doesn’t matter how hard you might try to sell someone on a home.  Buying a home is incredibly emotional.  It is also one of the biggest expenses you will have in a lifetime.  I don’t know anyone who is casual enough to allow a salesperson to come in and twist their arm to buy a home that might not be right for them.  Let me state it another way.  I could never be that person who puts pressure on a client.

My personal feeling is that if you are a good real estate agent, you will treat your client like you would treat a good friend.  There is respect, understanding and help in figuring out what type of home might suit that particular client best.

As a real estate agent, you are there to guide your client.  You must be knowledgeable and able to teach them the steps in home ownership.  You are the person that a client will go to for consultation.  Maybe the time is right for a customer to buy, and maybe it’s not.  The goal is not to sell a home, but to help a customer decide what’s right for them.

If you go about your job in this manner, the rewards will come.  A customer might use you later down the road because of your honesty and integrity.  You will gain a good reputation, and yes, you will sell homes and make a good living.

It’s all perspective.  I know that I would be turned off by an agent who felt like a salesperson.  On the other hand, an agent that acted as a consultant would impress me and leave a lasting good impression.

For those of you just starting out in real estate, this way of looking at your job might be of enormous benefit to you.  If you are an agent, how do you approach your job?  Are you a salesperson or a consultant?

 

Buying a Home? Here are 5 Things to do Before you Start Looking

I have received several calls from people who are planning to buy their first home over the summer.  I tend to get the same questions, so I thought I’d put together a list of things to do before looking for a home.

1.  Get pre-approved.

I can’t stress this enough.  People tend to drag their feet getting pre-approved.  The reason why it is so important isn’t just so you know what amount of money you are approved for.  You also need to know how much you might need to save up for a down-payment.  Cleaning up any credit blemishes is another reason to get pre-approved as soon as possible.

2.  Put together a plan for how you will save up the money for that down-payment.

The amount needed for a down-payment can be quite a chunk of money.  Another thing that needs to be considered is extra money for unexpected expenses.  If you are getting a foreclosed property or if you want to update the home you have chosen, having extra money set aside is a must.

3.  Decide where you would like to live.

There are a million reason’s why a particular city is picked out.  The homes might be more affordable, you love the night life of the area, or maybe the area is close to friends and family.  What ever your reason, it is much easier to find a home you will love when you have an area picked out as being perfect for your personal needs.

4.  Start shopping taxes.

This really goes hand in hand with picking the area you will live in.  It’s amazing how two cities next to each other can have such a wide range in what is taxed on homeowners.  You should be aware of how much you can afford and how the taxes will play into your decision.  Maybe the taxes are low and you will be able to afford more home.  On the other hand, maybe the taxes are incredibly high, but the lure of the location is enough for you to go for the smaller home because you love the neighborhood you are choosing.

5.  Get familiar with what you want in a home and how realistic it might be.

At Real Estate One, we have a free program where we send emails to the customer which show homes for sale.  The homes the customer views take into account the criteria that is important to the customer.  Let’s say the customer names 3 cities as possible choices.  The home should have 3 bedrooms, 2 bathrooms, a garage and 1400 sq ft minimum.  The criteria will be set and the customer will get email updates with pictures and information on homes that fit those needs.

It’s a great program in that it gives the potential homeowner a peek at what is available with the criteria they have chosen.  If the choices are sparse, the customer can tweak their criteria and see if they fare better with what is available.

If you are interested in discussing how you can get into a new home or maybe you have a home you need to sell, give me a call.  I would be happy to help you set up a plan to get ready to move and then find the home of your dreams.

Wendy McCance

Real Estate Agent

Real Estate One

26236 Woodward Ave

Royal Oak, MI 48067 

Direct: 248-414-1248 ext. 119
wendymccance@realestateone.com

http://www.wendymccance.realestateone.com/