Selling your Property Privately
Are you thinking of selling your home or condo without the use of a real estate agent? If so, here are some important points to consider:
1. Along with other methods of advertising such as online social media, internet sites, flyers etc., real estate agents list your home or condo on the Multiple Listing Service (MLS). The MLS (www.realtor.ca) is a far reaching database of current listings available to over 98 000 members of the Canadian Real Estate Association spanning 11 provincial associations. Your home was a large investment so why not give it maximum exposure to ensure you get the highest price possible?
2. Based on experience, real estate agents know which features of the home should be highlighted and can make recommendations to make your home more attractive to potential buyers. Some real estate agents use staging techniques if necessary.
3. Some homeowners who have tried to sell privately will agree that even when they find buyers who are genuinely interested in purchasing the property, an offer may not appear as they had hoped. Those buyers, especially first time buyers, may have felt the process of putting in an offer privately was overwhelming and talked themselves out of the process. Real estate agents guide buyers through the offer process and can handle concerns about whether the property is suitable for them.
4. After an offer of purchase and sale is signed, there are important conditions which need to be fulfilled within a timeline in order to have a binding sale. This is a time when buyers may experience buyer's remorse and back out of the deal by not delivering the required deposit. Without a real estate agent to guide them, it is more likely for the deal to fall through in a private sale transaction.
5. Some buyers have an impression that a private sale would be a good deal since they know the sellers are not paying real estate commissions. For this reason, they often expect to pay less than what your home may actually be worth if it was on the real estate market.
6. Some buyers, especially first time buyers, are intimidated by the negotiating process and avoid for sale by owner properties altogether.
7. The sale of a property involves various legalities. Without the experience of a competent real estate agent, you may find yourself ending up with errors in your contract which can negatively affect the private sale transaction.
8. Real estate agents are experienced in dealing with offer negotiations. As a private seller, that lack of experience could cost you a higher selling price.
The time you spend as a private seller dealing with unrepresented buyers as well as the lack of exposure of your home can cost you far more than the real estate commissions you are trying to save.
Have any questions about the process of selling your home or condo? Contact me today!
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