As the real estate market in Metro Detroit continues to be one of the hottest in the country, some sellers are taking the home selling job into their own hands and considering the For Sale By Owner or “FSBO” option.
Usually the biggest concern for many home owners when considering to sell is what will be their net proceeds, or the amount of money they will walk away from the closing with. Some home sellers look at the real estate commission and figure that they can save that by selling on their own. Often, I will see home many FSBO’s willing to cooperate with real estate brokers or offer a commission to a real estate broker if they bring a home buyer to them and accept a purchase agreement on their home. Is the home seller really saving themselves the commission by not retaining a real estate broker? Here are a few reasons why a home seller could be shorting themselves potentially thousands of dollars if they choose to try to represent themselves or sell “By Owner”.
- Selling your home below market value – Home owners are not professional real estate agents. Real estate agents work in their communities and neighborhoods on a daily basis and know exactly what homes are selling for. By retaining a real estate agent, they will be able to give you comparable market analysis and help you price your home to a current value of what homes are selling for. The average home seller sells a home only 1-3 times in their life. If you’re not in the market selling real estate every day, and knowing the trends for your community and neighborhood, you may price your home low and could be leaving thousands of dollars on the table that could have been in your pocket. This is a huge benefit of having a real estate agent on your side. By a Realtor representing your best interests and giving you the proper advice on pricing your home correctly, you could easily erase the commissions expense.
- Let the buyers bid your home up in value – With the lack of inventory of homes for sale in the Metro Detroit Real Estate Market, many homes that are priced well, show well, and have proper exposure are selling anywhere between 1-10% above the sellers asking price. With the proper marketing techniques, such as my exclusive, “Coming Soon” home selling program, you can create a bidding war environment to have your home sell for thousands of dollars above your asking price. For more details on my exclusive program to create multiple offers, visit http://www.OneDaySold.com
- It is all about the exposure – You could have the best home for sale in your entire city, but if it is not seen by the masses, you may never know what the top dollar for your home is. Don’t under-estimate the power of the multiple listing system or the MLS. Here in Metro Detroit, the largest multiple listing system is a data base used by over 11,000 real estate agents and brokers. These agents and brokers are working with many home buyers that are dependent on getting current inventory of homes for sale by their Realtors. I would estimate that the average real estate agent is working a dozen home buyers at any given time. If you take those 11,000 Realtors and the home buyers they are working with, that is over 100,000 home buyers in the Metro Detroit Real Estate market waiting for your home to be seen on the Multiple Listing Service. There is not a better way for your home to be seen then this. It is all about your home being seen by the masses and with this amount of exposure, you could easily have multiple buyers ready to start bidding on your home.
So the bottom line is, look at the big picture. Sometimes the real estate commission can initially be the determining factor on if you will hire a real estate agent to represent you, but in the long run, having a professional Realtor advising you how to market and price your home could end up helping you net more at the closing table and walk away with a bigger check.