During the past year, while spending lots of time at home with my wife and infant daughter, I learned that DIY projects can be really fun AND save me money. I embarked on a few projects including repainting our exterior shutters, re-tiling our bathroom floor and even installing new light fixtures. While I had lots of fun, I did learn after some trials and errors that it’s a lot more time-consuming than imagined, and it took a lot more knowledge than I initially thought. The tiles were harder to fit once they got near the toilet; the shutters were kind of old, and some were falling apart; and the light fixture wouldn’t turn on despite my matching all the color-coded wires correctly.
When business started picking up, I no longer had the time to finish these projects. The only ones completed are the ones I ended up hiring a professional to do.
So, was I able to do it myself? Technically yes. But since time is money, I learned to stick to what I am good at and invest in the best for everything else.
For sellers, the “for sale by owner” strategy represents freedom, control and less cost. All very appealing. However, when further assessing these so-called benefits, you’ll realize the numerous risks make it far better to use a real estate agent to sell your property. Here are a few reasons why:
Insight Into the Local Market
I’ve seen too many homes that were on and off the market so many times that any savvy buyer would immediately see it as a red flag. An overpriced home is essentially a dead-on-arrival listing. Realtors, who have constant boots-on-the-ground, have a lot more access to data than private owners do. Although you can study the prices of other homes in your neighborhood—and price yours comparatively—there is more to determining the value of your house than looking at the listing price of your neighbor’s home. I analyze the house’s history and the neighborhood’s market activity; and assess the home’s “defining features,” which may determine added or reduced value.
Negotiation Can Be Tricky
Many sellers believe that direct negotiation between buyers and sellers is more transparent and allows both parties to look after their best interests. This is probably true—assuming that both parties are reasonable people and are able to get along. Unfortunately, this is not always the case.
What if the buyer doesn’t like the wallpaper or the mosaic tiles in the bathroom window? If you have an agent, you can discuss your concern or rant about the cost to upgrade it without insulting the seller. For all you know, the seller’s late mother may have chosen the distinguished wallpaper, or the mosaic tile has sentimental value, and insulting the décor may
jeopardize the sale. A realtor is trained to convey this message in a manner to negotiate a discount in the sale without ruffling any feathers.
A realtor can also play the “bad guy,” preventing any bad blood that can kill a deal, by smoothing things over in a tough transaction and keeping it from getting personal.
Access to a Large Network of Buyers
Yes, sellers can post ads in the paper and online and put a “for sale” sign outside, but to get the most potential buyers, you need to tap into where they are located. Agents are usually already working with several active buyers who may be the perfect match; not listing your house with an agent means your house may not show up on MLS search results, thereby losing out on possibly the largest pool of active buyers.
Save You Money
Yes, save you money. “But how? Realtors charge such high fees?!” If your time is valuable, then you will save money. Here’s how. If you ask anyone who listed a home for sale how many times their phone was ringing, and how many texts they were bombarded with, either by Jonathan the broker from 30 miles south who keeps telling them why he’s the best broker, even though he never stepped foot into your town; or it is Danielle who is so excited to see your house, except she does not have a pre-approval letter and is not planning on buying for another three years.
Soon you realize how much time it takes to filter and screen all the incoming calls and texts. Perhaps you didn’t answer in time, so a buyer called the next house for sale down the block, fell in love with it and closed on your neighbor’s house instead. This leaves your house on the market for longer, with another mortgage and tax payment out of your bank account.
Additionally, savvy buyers see a house listed “by owner” as an opportunity to negotiate even lower “because the seller is not paying a broker’s fee, he doesn’t deserve such a high price.” They may come with a buyer’s agent who has lots of
experience negotiating for the “buyer’s” best interest. Buyers are aware of this and may use your lack of experience to their advantage, placing you at greater risk of being exploited. You may also attract a more unscrupulous buyer when you list your house on a private sale.
The Bottom Line
While there are certainly people who are qualified to sell their own house, doing a quick Google search will land you a long list of frequently asked questions that suggests the process isn’t as simple as many assume, and when a difficult situation arises, it can really pay to have a professional on your side.
Levy Tewel is an associate real estate broker and team leader of the Tewel Team at Compass, serving Bergen County and New York City, with more than nine years of experience and over 1,000 closed deals. Levy can be reached at 201.477.0117 or [email protected]. www.TewelTeam.com.
