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LOSS ON MARKET VALUE : Your goal, in selling privately, is to sell at market value and keep the commission. The buyer's goal, in buying privately, is to get you to sell your house for it's market value minus the commission you would have paid by using Realtors. That's the only reason they are buying privately. Why else would they pass up the other 95% of houses, i.e.; the ones being sold through Realtors? If you're going to hold out for the one buyer that is buying privately and also willing to pay you the market value of your home, you'll never sell it. COMPETITION COSTS: The highest prices are paid on houses that have attracted multiple offers. Even with 750 Realtors in Barrie doing an average of 10 purchasers per Realtor, multiple offers are hard to attract. How many offers can you expect to attract if there are only a handful of buyers out looking for private sales? It's the basic supply and demand principle. One buyer means a lower sale price. COSTS OF DELAYED SALE: If it takes an average of 50 days to sell on the MLS system, how long will it take you to find a buyer if you're working on your own? During that time, you're still paying interest on your mortgage. You're still paying for maintenance on the home. You could be paying for repairs that would have come out of the pocket of a buyer if you had listed it with a Realtor. NUISANCE COSTS: Realtors weed out the real buyers from the tire-kickers and nosy neighbours. You're going to have weed out the bull---tters yourself, and be there when they want to call, and come over. LEGAL COSTS: If you actually get an offer, you'll have to pay your lawyer to review it and advise you on the implication of the clauses and terms. He'll want to change things, and all of that advice and assistance costs you money. A Realtor does all of that as part of their services. COLD FEET COSTS: While you're waiting to meet with your lawyer to review that offer, a day or two will pass. All that time, the purchaser will be losing that initial excitement about buying your home. When you go back to him with your counter-offer, he's likely to have decided not to buy or, worse yet, he may have found another private vendor that he thinks he can nail for an even better deal than he did you. NEGOTIATING COSTS: The buyer has passed up 95% of the houses on the market because he's hell-bent on getting the best deal privately. He believes he can be more brutal in negotiating a deal for himself than a Realtor could do for him. Do you want to be sitting across the table from him? Do your negotiating skills match his? How much is the difference in your negotiating skills and a Realtor's negotiating experience going to cost you? SECURITY COSTS: Who's knocking on your door when you're not home, or when you're at work and the kids are at home? Who are you letting into your home? Are they planning to come back when you're not there to do some "shopping"? Realtors screen their "buyers" to ensure they are working with sincere people. To add to the misery, criminals have begun to exploit private buyers and sellers through identity theft. REPUTATION LOSS: There was a time when people sold privately because they wanted to. Today the majority of people sell privately because they can't afford a Realtor, and have no choice. Before taking a listing, I get the mortgage verified by the lender to make sure there is going to be enough money left over to pay the commissions. If there isn't, I won't take the listing. The sharper Realtors do the same. In this market, when I see a For Sale By Owner sign I think "There's another family in financial trouble." So do most of their neighbours. OPPORTUNITY COSTS: If you finally overcome the odds, and become the one seller who is successful in finding a private buyer, what could you have bought with the money you lost through doing it yourself. What better things could you have accomplished with the time you had to put into it? Do you want to sell your house? Do you want to get it over with as soon as possible? Do you want to put the most money possible in your pocket when the deal is done? Then call me now, and get on the FAST-TRACK! |
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Bill Rinehart |
705 436-5111 |
Toll Free 1-877-436-5111 |
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