|
WHY YOU WILL MAKE MORE MONEY, REALLY
At first blush it just does not make sense that I can put a front end load of 6% on the sale of your house and still present you with more money at settlement. Well, here is why that happens.
First of all, let’s look at the options a prospective buyer has when they decide to look for a different house.
|
Work With A Realtor
|
Do Not Work with Realtor,
Shop For Sale By Owner
|
|
Tell Realtor what they want
|
Develop own list which is no big deal
|
|
Realtor searches the MLS and makes sure that every house that meets the buyer specifications is presented.
|
Buyer searches newspapers, multiple web sites, many with old information. Buyer misses some homes he would like to see.
|
|
Realtor presents properties to consider
|
Buyer reviews all properties, from multiple sources to decide which to see
|
|
Realtor makes appointments for buyers
|
Buyer makes appointments
|
|
Realtor provides transportation
|
Buyer provides own transportation
|
|
Realtor prepares offer
|
Buyer prepares own offer
|
|
Realtor negotiates offer
|
Buyer negotiates offer
|
|
Realtor arranges for inspections
|
Buyer arranges for inspections
|
|
Realtor negotiates inspections
|
Buyer negotiates with seller direct
|
|
Realtor orders title insurance
|
Buyer orders title insurance
|
|
Realtor clears up title defects
|
Buyer must clear up title defects.
|
|
Realtor arranges for settlement
|
Buyer arranges for settlement
|
|
Above services are all free; Seller pays
|
|
Ask yourself the question, “Why would buyers go through all that work by themselves when they could work with a realtor, save a lot of time and it is all free.
There is just one reason they do that and it is,
TO SAVE THE COMMISSION AND TO GET A GOOD DEAL.
You see, people who shop For Sale By Owner know that you are not paying a commission and they are determined that they are not going to pay it either.
People who work with realtors have a different head set. They are ready to pay fair market value for the house. Please ask yourself, which group of buyers would you rather work with?
HERE IS HOW THE TYPICAL FSBO SHOPPER WORKS
They do a lot or research on what kind of house they want (locations, school districts, amenities like numbers of bedrooms, baths, etc).
They also do a lot of research on prices, price trends, days on market, inventory levels. In fact, they are better prepared with market knowledge than a lot of realtors.
If they come to see you house and make an offer, here is how they probably will develop it:
· Look at your asking price
· Subtract 6% because they know you are not paying a commission
· Subtract another 10% or more because they want to get a good deal.
· Present you with “Comparable Sales” to back up their offer.
· However, their “Comparable Sales” are probably not really comparable. They were selected to convince you that your asking price is way too high.
If you accept their offer, or negotiate close to it, they are overjoyed.
If you do not accept, they move on to the next house that meets their specifications, because their only motivation is to get that great deal.
That is the biggest reason that the median FSBO purchase in 2009 was 16.2% less than a realtor assisted sale.
Even subtracting a 6% commission, leaves more than 10% more money for the seller.
However, if you are not convinced that you will be better off working with me, you can continue everything that you are doing while I also go to work for you.
You are fee to accept the best offer, whether it is one that I generate or one that you get on your own. If you get it on your own, you do not owe me anything.
I CAN PUT MY HOUSE IN THE MLS FOR $350 AND THAT DOES EVERYTHING YOU CAN DO FOR ME, RIGHT?
Well, not really.
First of all, putting your house in the MLS is absolutely a good move on your part. That is where 70% of the sales start from. Short of using me, that is the smartest thing you can do.
However, to make the best use of the Internet, of which the MLS is only one part, you need to understand how to use the tools. Here is what is needed to make sure you get the maximum exposure for your house, which translates into the highest offer.
· Extensive Virtual Tour
· 25 Pictures of Your House for Internet Dispaly
· Enhanced Listing on Realtor.com
· Exposure on all of the following web sites + others: Zillow, Trulia, Yahoo, AOL Real Estate, Homes.com, Redfin.com, RealtyTrac.com, NCI Interactive, RealEstate.com, HomeFinder.com, FrontDoor.com, HomesandLand.com, JohnHerreid.com, Craigslist, Backpage, DotHomes, GoogleBase, HotPads, FrontDoor, Vast, Properrazi, Oodle, Local.com, RealEstateBook.com, Zipvo, ViewThisHome, MLS Trend.com, Realtor.com International, YouTube, Google Maps, Lycos, PropBot, ERealInvestor, CLRSearch.com, HotPads.com, CyberHomes, LandWatch, HomeWinks, InvestorLoft, PropertyPursuit.com, HomeAwayRealEstate, TweetLister, MyNewPlace, MyRealty.com, Overstock.com, OpenHouse.com plus 68 other web sites associated with radio and TV outlets throughout the world.
· That is a total of 114 web sites, plus new web sites are being added constantly via our exclusive Keller Williams Listing System.
OTHER AREAS IN WHICH YOU PROBABLY WILL BE AT A DISADVANTAGE ARE NEGOTIATING WITH BUYERS AND NEGOTIATING A CORRECT APPRAISAL
· Most of the responses you receive via the MLS will be for buyers who are represented by realtors.
· Buyer agents are required by our code of ethics, to negotiate the lowest price for their buyers.
· Realtors are trained to negotiate and probably have access to more information than you do.
· Depending on whether I represent the Buyer or the Seller, I can probably “Prove” that your house is worth 10% more or less than your asking price. I would be glad to demonstrate this for you, if you would like.
· That can result in you coming to believe that you should actually accept an offer for several thousands of dollars less than what your house is actually worth.
Another area in which you could be at a disadvantage is in getting the right appraisal for your house.
· In all probability, your buyer will have to get a mortgage to complete the purchase.
· In this era of declining values and changed appraisal guidelines, it is not uncommon for appraisals to come in at a price that is significantly less than the sale price to which you and the buyer have agreed.
· If you have the right realtor representing you, he will:
· Accompany the appraiser on his inspection and discuss why the house is worth at least the agreed to sale price.
· Present the appraiser with selected comparables that back up his opinion.
· If the appraisal still comes in below the sales price, he will work with the lender and appraiser to present new information to justify the higher price.
· I have never lost a deal because of a low appraisal.
· I know of several cases where this kind of intervention has saved the deal.
|