Selling Your Home By Yourself?
Discount brokers and companies that facilitate ‘for-sale-by-owner’ (FSBO) transactions have popped up in the last six months driven by a landmark deal that has opened up the MLS listing service.
Struck in October between the federal competition bureau and Canadian Real Estate Association (CREA) allows realtors to offer their clients flat-fee services, including listing their property on MLS, which is owned by the CREA.
It means users are free to pick a la carte services, such as signage, a comparative market analysis, and webpage and MLS listings, to best sell their home for as little as $100.
That compares with full service real estate commissions which average between 3 and 5 per cent of the home selling cost. On a $300,000 home, the fee could range between $9,000 and $15,000.
Sure it’s a lot cheaper, but you also get a lot less help in selling your most valuable asset. Can you price it right? Can you close a deal by yourself? If the answer is confidently yes, then not using a full-service agent can save you a bundle.
Do-it-yourself sellers manage their own viewings and open houses. They also price their home without the expertise of an agent and manage negotiations with a potential buyer. Without an agent acting as the middle man, this can make some sellers feel awkward.
There are plenty of scenarios like this when an agent can be very useful and worth their commission. These scenarios include:
1. Pricing
In a market like Toronto, knowing how to price your home properly is crucial.
If you overprice your house, or don’t do a proper comparative market analysis to gauge the temperature of the local market, it can be “property suicide,” according to Von Stedingk.
A properly priced home can yield quicker offers, and get you the value your home deserves.
2. Location, location, location
Good agents are often location-specific and know the neighbourhoods and market of the area in which they work. This expertise can cut down time and help you discern what areas are of interest to you and what you’re looking for, and where buyer should beware. Without this knowledge, a buyer may get into an area that they thought was great, but it turns out, for example, there are noise problems or a high crime rate.
3. Time
As a seller, if you don’t have the time to host your own open houses, and coordinate times for potential buyers to view your home, an agent can be a blessing. An agent takes care of viewings and should host open houses that allow people to drop in and view your home.
4. Staging
A good agent has an eye for detail, and knows what kinds of homes sell. They can help you ‘stage’ your home and get rid of clutter and personal affects that may seem like a small detail, but could deter a potential buyer.
5. Legalities
If you’re new to the housing market or you aren’t familiar with the legalities or structure of a real estate transaction, an agent can be very helpful in navigating these waters. However, all real estate transactions require a lawyer, whether you use an agent or not.