THE IMPORTANCE OF REPRESENTATION WHEN SELLING
Brian DuBois, Broker/Owner/Partner, DuBois Realty Group
Seller’s Market! Need representation? Here’s a brief guide:
In today’s robust Seller’s market, the temptation may be to sell your property yourself. It will sell, but is it the right move? The results are astonishing.
The usual motive for a FSBO (For Sale By Owners) is to save the money invested in representation from a real estate professional. It’s not a matter of the property selling or not, but it is a matter of selling for top dollar and in the least amount of time.
For instance, the National Association of Realtors® conducted a study only to find that FSBOs sold their properties for 15% -18% below market value. On a $300,000 home, that equates to leaving $45,000 to $54,000 “on the table” in an effort to avoid paying a commission to a real estate professional.
How can that be true?
First, many Sellers do not understand the market like a real estate professional.
Setting an accurate price is critical and should be based on hard market data, market trends, and the Seller’s motivation.
Secondly, how the property is marketed is vital to the success of the sales process.
Maximizing exposure in all markets – local, state, national, and worldwide – generates the most interest in the property. The marketing plan should include exposure where the buyers search, not on personal platforms. A private YouTube channel or website is nice, but not where the majority of the purchasing public is engaged. 97% of buyers are finding homes online through trusted real estate sources.
Third, access to the property for viewing can be challenging. With a FSBO, Sellers often overlook that the house needs to be available for viewings at times that may not work with the Seller’s schedule. By engaging a real estate professional, proper coaching should lead to an expansive availability schedule, and each viewing is conducted with a licensed agent present. The Seller does not need to be home.
Finally, and arguably the most important, is negotiating. Statistics suggest that people who choose to sell their own property are not strong negotiators. Perhaps leverage is compromised from the beginning as the buyer perceives a “bargain” since there is no representation. Think diamond ring: a consumer expects to pay market rate at the Jewelers vs. receive a handsome discount at a private estate sale.
The fact of the matter is that most buyers are already engaged with a real estate agent.
This means two things: the Seller usually agrees to pay the buyer broker commission as compensation for bringing the buyer to the table (reducing that “savings” the seller sought in the first place), and that the broker is a skilled negotiator. The odds are stacked against the Seller in achieving the highest and best price.
Not to be lost in all of this is the protection AFTER the sale is complete.
Did the Seller disclose all known material defects as required, or did they expose themselves to a costly lawsuit?
So, by inaccurately determining the price, marketing it to a fraction of the buying audience, and exercising sub-par negotiation skills, it is clear to see that a 15% – 18% “discount,” as stated by NAR, is entirely achievable for those who choose to sell without engaging a real estate professional.
ABOUT THE PRO
Brian DuBois was born and raised in Auburn, educated at Bentley University, and later employed as the Executive Director of the Auburn-Lewiston YMCA. Brian has in-depth knowledge of the greater Lewiston Auburn area, the professional skill set of a community leader, and the interpersonal skills to facilitate smooth real estate transactions. Brian has a genuine interest in the real estate market, and this industry is also an excellent fit to meet his desire to serve by connecting families with a new home, guiding sellers through a thorough process, and providing investors with new opportunities.
Together with his wife and business partner, Marnie, they reside in Auburn, raising three children and two dogs.
Brian welcomes your inquiries regarding this subject matter, content suggestions, or questions regarding all things real estate.
207-344-3230
