So... you've decided to sell your home "By Owner"

Hey, that's not necessarily a bad thing! Many Realtors often wonder why people decide to sell their home By Owner. Well, there's a hundred reasons homeowners can come up with that may persuade them to offer their home for sale without the use of a Real Estate Agent... The two most used are (1) "I just don't think I want to hand over a percentage of my money to a Real Estate Agent... it just cuts deep when the property is sold." and (2) "Why should I use a Real Estate Agent anyway? All they do is put a sign in my yard and I never see or hear from them again... it's a waste of my time!"
If that's the reason you have decided to sell your home By Owner, hey, I can understand. Particulary on the second reason... but let's address first things first. In the situation where one feels it cuts too deep to pay a commission to a Real Estate Agent, well, I can understand that too, but there's a few other things one must consider before making that decision. First, If the Real Estate Agent is working and "earning" that commission, it's saving the property owner a lot of time and money! The Agent is advertising the property in as many venues as possible, the Agent is seeking qualified buyers to sell the home as quickly as possible, and the Agent is working withing the laws, rules and regulations that govern Real Estate transactions. One thing property owners often fail to remember is just how much money it takes to "properly" advertise a property for sale and how much money it will take to ultimately close the transaction. There is a HUGE difference between "Listing A Property For Sale" and "Selling a Property"! If the agent is doing his/her job, the Agent is spending a lot of money in advertising, without the benefit of having sold the property. This is up-front funds the Agent must expend to get it in front of ready, willing and able Buyers. The Agent also has the benefit of knowing the governing requirements for real estate transaction including all of the necessary forms and disclosures necessary to sell that home. Property owners are not always aware that there are some stringent requirements for disclosure in selling a home whether working through a Real Estate Agent or selling a home By Owner... The law requires certain things and if they're not done, it could ultimately catch up to the property owner and come back to haunt them even after the transaction is completed. And, failure to properly disclose can cost the selling party thousands of dollars! Keep that in mind when selling a property By Owner. As for the second issue of not using a Real Estate Agent because they don't work for their commission... well, I'm with you 100%!!!!! If a Real Estate Agent is NOT working to earn that commission, then why should they get paid? Many Real Estate Agents will say anything and everything you want to hear to get you to list your property with them. Many will go to any extent, even to put a property on the market that they absolutely know will not sell at the price at which they're offering it. You've heard of "Loss Leaders" in the Retail business... well, in the Real Estate industry, these properties are considered Loss Leaders. They have their sign in the front yard, someone calls to get information, they tell the calling party the price and the calling party says "Oh, No Way!" Then, the Real Estate Agent goes on to tell the calling party "I know, it's priced way too high but the owner will not lower the price. But, they go on the tell the calling party that they have another property that may better suit them." See how that works? The more signs they have in front of properties, the more calls they make, using these properties as "loss leaders" to get business and sell other properties that are listed. Anyone can stick a sign in a yard and yell to the top of their lungs that the property is for sale... but that doesn't necessarily get the property sold! They can also say "Well, I've got it on the MLS and that should be enough... Sorry, that's not enough either! For those Real Estate Agents that list a property for sale, put it on the MLS then go sit at their desk and wait for someone to call them, well, it's like throwing dice. They may get LUCKY but, hey, if a person wants to hire a LUCKY Real Estate Agent, they just as well go to Vegas to hire one, there are thousands there looking for "the next big thing!" That's not earning a commission.
There's one other thing a property owner should consider... NOT ALL REAL ESTATE AGENTS ARE CREATED EQUALLY! That's right... First, there are Real Estate Agents and there are REALTORS. Let me tell you folks, a Realtor MUST follow standard state procedures and adhere to the Ethical Standards laid out by the Local, State and National Association of Realtors. And, I'm here to say that, unfortunately, as hard as the governing bodies have worked to make sure there is a standard in Real Estate, there are still unethical, decietful people out there in the Real Estate industry. Even a REALTOR is not necessarily your answer. Property owners should interview as if they're hiring their next employee. Because that's excatly what is happening! You're hiring your next employee. It just so happens that this employee is going to be in charge of selling your most prized possession! Your home!
That's sad for me to say, but it is absolutely true and it can't be denied. The governing bodies are working hard to insure all licensee's are adhering to standards but as in any other industry, some slip through the cracks. So, here is what I think about selling a property By Owner.
Perhaps you feel that it may be your best option. Do yourself a favor. Interview some Realtor's and find out what they have to say. Find out if they're willing to WORK for you and provide you with the information you deserve. If not, by all means, do what you think is the best for you. But, keep "greed" out of the equation. You'll need some disclosure information, you'll need a Comparative Market Analysis (CMA) to determine how to properly price your property... don't settle for the "my neighbor sold her house for $XXX,XXX dollars so mine should be worth at least $XXX,XXX dollars." That's not good enough. Maybe your property IS worth that $XXX,XXX! Make sure with properly compiled data to back up the price of your property. If you're in the Middle Tennessee area, the next thing you should do is... visit www.ronsifford.com ! There you can search the Multiple Listing Service to compare your property against properties that are currently for sale and properties that have already sold... this will help you determine at what price you should sell your property.
The next thing to do is to e-mail me at ron@centerhill.com I'll be happy to help you put together everything you'll need to sell your property By Owner!
WAIT, WAIT, WAIT! You're kidding me right? A Realtor is going to help you put together a package to help you sell your property By Owner... did I read that right??? Absolutely!!! You read it right. I'll help you put that package together. So, you ask, why would I do something like that? Well, it's simple. After you've had a chance to put the information together and try your hand at selling your property By Owner, you'll find out just how much work is involved and how much money is going to come out of your pocket anyway... probably more than if you paid commissions to begin with. Perhaps you will sell your property because I do have a very nice package of information. And, where does that leave me? Well, it leaves me where a Realtor should be... thought of as a friendly, helpful, professional Realtor. It would make me proud if you sell your property. That tells me that you received the proper information to help you sell you property. And, if you DO sell your property and purchase another one, perhaps you'll think of me the next time you want to buy or sell. Maybe by doing it yourself, you'll gain enough knowledge that you'll want to leave it in the proper Realtor's hands to handle the details... maybe you won't like staying at your house day in and day out to take phone calls and answer questions. Maybe you won't like the fact that every Tom, Dick and Harry that is "curious" about your house wants to call you all hours of the day and night to get information, whether they're qualified to buy or not. Maybe someone will call you who has absolutely no intention whatsoever of buying your house and set up an appointment to see it. In your enthusiasm, you show them everything you know about the house as they smile and walk from room to room. Looking closely at every detail, then, as they watch your house for several days, you must run to the store and get groceries, and they break into your house and wipe it out of everything of any value. It will only take them a few minutes as they already know where everything is located. Then, where do you stand. I don't wish anything bad on anyone... but can you see how easily this could happen? A good Realtor would have interviewed the potential buyer and determined if they are qualified to buy the house and have them answer a series of questions that would help the Realtor determine if the party should in fact even go into your house. You will not have that option as they will all meet you at your house anyway. Finally, when you're worn out, tired of people in and out of your house, you set down to rest... and BEHOLD! The telephone rings with another party wanting to take a look at your house. You tell them that you're sorry and will not be able to show it again until tomorrow... but, that person calling is already sitting in your driveway. What now? You don't know this person, it's after dark and do you really know what they have in mind? Do you know if they're actually interested in your house or perhaps have something more dangerous or devious on their minds. So, you tell them to go away. Then you find out two days later that they purchased the house next door.... UGH! Why do that to yourself?
Anyway, I think you get the picture... I'm here if you need me and if I can help you in any way... just give me a call, e-mail me, write me, blog me... whatever. I'm a professional Realtor and I'm here to help you with your Real Estate Needs! HAVE A FANTASTIC DAY!

Ron