Dispelling the Myths of Selling by Owner
Myth #1 - You can sell your own home for the same price a Realtor
could
Research shows us that over 49% of buyers found the home they
ultimately purchased through a real estate agent. Looking at this
situation with the laws of supply and demand in mind, is it reasonable
to believe that if you had a potential market of 51 buyers for your home
it would sell as easily and for as much as a home with 100 potential
buyers? Ask yourself... is it worth it to save $7,000 on commissions if
you lose $10,000 on the price of your home? Especially if you
have to do all the work yourself?
Myth #2 - Real estate agents make too much money
Stock brokers make too much money. Doctors make too much money.
Lawyers make too much money. Oil company executives make too much money.
Engineers make too much money. People that put your little logo on a pen
or a coffee cup make too much money. The fact of the matter is that
people typically make money based on their skill, experience, and
business acumen. The average agent in Anchorage makes about $20,000 a
year. If he knocks on your door, send him packing. If you find one who
makes significantly more, hire him! He must be doing something right!
Myth #3 - Real estate transactions aren't that complicated... anyone
can do it
This phrase is true of just about anything in life... until a problem
arises where specific expertise is needed. Those are the situations
where true real estate professionals rise to the top. Professionals with
years of experience, professionals with the ability to find solutions,
professionals with a calm explanation and a soothing suggestion for an
anxious buyer, and professionals with two backup plans in place for
every contingency.
I tried fixing my own car once. I had a repair manual and a fairly
good set of tools, and I figured, "It's not that complicated...
anyone can do it." I discounted the experience of a mechanic -
until a carburetor looked vastly different in real life than it did in
the pictures in my book. I discounted the preparation of a mechanic -
until I realized that there were highly specialized tools with specific
ways to use them that I lacked. I discounted the organization of a
mechanic - until I tried to put my car back together. And I discounted
my mechanic's warranty - until my car didn't run correctly and I had no
one to blame but myself. Yep... I saved myself a bunch of money that day
that would have otherwise gone right into my mechanic's pocket!
Myth #4 - You are your home's best seller!
A popular myth spread by FSBO "assistance" programs.
"After all" they say, "who knows more about your home
than you do?" The fact is that most buyers feel very uncomfortable
having the seller in the house with them while they are viewing it.
Think about the last time you looked at a home. If you liked it, fine.
Having the seller point out things about the home would have been nice,
but you probably would have liked it the same anyway. If you didn't like
it, there probably wasn't anything the seller could have said to make
you like it more. Buyers typically make their own decision. The great
sales tool you don't have is being able to say, "This home
has a few of the features you initially said you wanted that the other
homes we looked at didn't have... let's talk about those for a
minute."
Myth #5 - Having open houses is a good way to sell your home
Showing houses is a good way to sell homes. If you're a For
Sale by Owner, and the only time your home is being shown is during open
houses, you'd better plan to do a lot of them. The average listed
home is shown 15-20 times before a qualified buyer is found. That's in
addition to the people that came through the open houses.
Myth #6 - There are lot's of qualified buyers who aren't working
with agents who look at FSBO's
If you were a qualified buyer who knew you could choose an agent with
years of experience to represent you in your purchase at no cost to you,
why would you choose not to and go look at FSBO's? Right! Maybe you can
shave some money off the asking price. You've got your eye on that
commission that your agent would have earned! Except... the FSBO also
has their eye on that commission. How does that work? How can two people
on opposite sides of a transaction save the same commission? Obviously,
they can't. If you have a qualified buyer who is looking at FSBO's
without a real estate agent, you're probably either dealing with a shark
or someone who will be looking for a lawyer 10 minutes after they close.
Remember, in this situation you're the ultimate dual agent...
you're not only handing both sides and advising the buyer, you're a
party to the transaction!
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