Why Sellers Don’t Save Money by Selling on Their Own.
By
Michelle Fradella, Broker - Pinnacle
Real Estate Group, Picayune MS
Now subtract the cost of all the advertising you will need
to do in order to get the word out about your property.
You will need to put classified ads in the newspaper (not a cheap
venture), and run ads on the internet on “FSBO” websites that make you pay
$1500 or more UP FRONT, even if the property doesn’t sell.
You’ll need to buy signs for your yard, and try to find as many other
ways as possible to let people know your property is for sale.
We are currently in a buyer’s market, which means that
buyers now have a huge amount of homes to look at and consider when making a
purchase. What makes yours stand out
more than all those listed? How is
your home going to be in front of all of those people who are working with a
realtor, looking for a property like yours?
The only way you are going to get it to stand out is to ask for less than
market value, so your property is a “better deal” to the buyer.
Now take into consideration all of the relocation buyers,
and first-time homebuyers that are either not going to even know your property
exists, or are not wanting to deal directly with the seller without having
someone there to help them make the right decisions and help them get financing?
A relocation buyer doesn’t get the local newspaper, and they certainly
don’t have much time when they are here to drive all over creation and happen
upon your sign. If you are looking
to purchase property in a new area, where would you start to look? . . .
www.Realtor.com.
Then their relocation coordinator sets them up with a
broker in the area they are moving to, and they are off to see
properties.
If you have a mortgage on your property, every month that
it doesn’t sell takes the money you are paying in interest payments away from
your profit. Say your interest each
month is $600 (and that is usually on the low side).
When you wait 8 months, you have lost another $4,800.
So, if you started out asking $200,000 for your property
(hoping that it is priced at market value so you can sell it at least attracts
some attention), you then subtract the commission, advertising expenses, and
interest payments, not to mention the amount the buyer haggles out of you
negotiating the price. How much
profit do you have left? And who is
there to consult you if something goes wrong with the sale, or the buyer can’t
get financing? Do you know what
financing opportunities there are for a property like yours?
Do you have a plan B for the buyers if they can’t get the loan?
Selling your property on your own might save you paying a commission, but it will also keep you from walking away with as much as you would have if you’d had an experienced, licensed, full-time professional do it for you.
Copyright 2008 - Pinnacle Real Estate Services, LLC a Mississippi Corporation