Don’t Sell Your Own Home Just Because It’s a Seller’s Market.
One thing that has become very clear this past year is that we are living in a seller’s market. Demand for homes is outpacing availability leading to homes selling in half the time of previous years and steadily increasing offers from homebuyers. The market is competitive, which is excellent news for folks looking to sell their home. With homes being such a hot commodity, it may be tempting for homeowners to consider selling their home without using a professional real estate agent, also known as For Sale By Owner (FSBO). After all, hiring a professional costs money, and people may think they can manage on their own and keep all the profits for themselves. Yet when all is said and done, selling on your own is likely to cost you in the end. In fact, according to the National Association of Realtors, homes sold by owners went for 26% below the closing offers of homes sold by real estate agents. Below are a few examples that lead to these statistics.
Home Prep and Staging
Staging your home correctly and making the necessary preparations can significantly impact the quality of offers you receive on your home. While these things may seem superficial, first impressions are everything, and it is essential that potential buyers can picture themselves living in your home. That being said, home repairs, cosmetic updates, and new furniture can be pretty costly, and not all changes will lead to higher offers. Your real estate agent knows what elements of home preparation and staging will yield the best results, can guide you in a style that will be most generally appealing, and can even connect you with local contractors and vendors.
Home Inspection Negotiations
Suppose you accept an offer from buyers, go through the home inspection, and the report lists some needed repairs or structural damage. Your buyers will likely want to alter their bid, and you will need to know estimated repair costs so you can renegotiate successfully and fairly while not losing out on more than you need to. A professional real estate agent will guide you through this process and help you determine if it is more cost-effective to make some of the repairs yourself as part of the updated closing offer. Once again, in this scenario, your agent can help connect you with the best local contractors for the job when needed.
Knowing How to Price Your Home
Knowing how to price your home correctly is one of the most significant determining factors to the closing offer you receive. The strategy behind initial listing prices is an art form that requires strategic thinking and research. If your starting price is too high, you may attract less competitive bids, and with less competition, the price is less likely to rise to its potential. Price your home too low, and you may not have the room to negotiate upward. Professional real estate agents have abundant experience setting listing prices. They understand what adds to the value of your home, from location to amenities.
Counter Offers
One of the more unpleasant aspects of selling a home for many people is the negotiation part. It is essential to be assertive yet fair and to remember that this exchange is not personal. Not only will you need to know what increments to adjust your price when going back and forth with a potential buyer, but you will need to have the confidence to not back down at times and know what areas to give slack. If you are too forceful or too accommodating, you could lose the sale altogether or miss out on considerable money. Negotiating is an area where a professional has a lot of experience and can help close the deal professionally and confidently.
The bottom line is that despite the cost of commission, hiring a professional real estate agent is statistically proven to increase the closing price of your home. Not only will it make sure your home reaches its selling potential, but it will also take a huge burden and a great deal of work off your plate. It’s a win-win situation. If you’re thinking of selling your home, reach out to me through my website or give me a call at (302) 545-8569, and follow my blog for more real estate-related tips.