If you’re a fan of “reality TV” shows like Love it or List it, Flip or Flop, and Flipping Out, we understand. There’s a sense of drama, entertainment, and sometimes a financial windfall. It can be very tempting to jump into the real estate market with a false sense of confidence after watching these shows. Before you decide to jump in by not using an agent to list your home, ask yourself…
Is this in your best interest?
For Sellers
This study by Collateral Analytics is clear that FSBOs may, in fact, lose out by NOT listing with an agent. Typically, owners who choose to handle selling their own properties want to avoid paying the Agent’s commission.
In doing so, they are responsible for:
Right-Pricing: This requires understanding square footage cost, current market conditions, and a whole lot more! Finding comparable properties (aka. “comps”) in your area that truly match search criteria requires a wealth of knowledge. Differences in material grades, location within a neighborhood, and additions like in-ground pools or finished basements will affect values. As agents, we know where to get the most up-to-date information that will help us “right price” your home.
Research: In addition to “right-pricing” based on property values, you will need to understand the current market. Although Rochester, New York is known for a reasonably stable market, fluctuations in either direction can have an impact on how long a home stays on the market. This may lead to other problems like…
Time: Simply having your home on the market for more than 30 days will have an impact on the perceived value. The longer your listing lingers, the more likely the Buyer is to try to negotiate your home for a lesser price.
But wait, there’s more…
Appraisals: If a buyer needs to get a mortgage, the house has to appraise for the price that the buyer is willing to pay. In addition, the appraisal must match what the lender is prepared to offer in a mortgage. If the appraisal is less than either of those numbers, what do you do? A real estate professional will help you through that, and help you avoid the issue altogether!
State rules and disclosures: Federal law requires that Sellers disclose to Buyers that any home built before 1978 can pose a lead paint threat. Do you know where to get the right brochure to give to your Buyers? If you don’t know this most basic of answers, the question is, “What ELSE don’t you know?”
Collecting Earnest money: This is basically a promise from the Buyer that they’re serious. How much is should you collect? How do you account for it? Under what circumstances will you need to return it to the Buyer? This can become very complicated, very quickly.
Working with an attorney. No matter what you do, the transfer of real property in New York State requires an attorney to be involved. Not all attorneys can perform real estate transactions and among those who do, not all real estate transactions are equal. Who will you call?
Tax Impacts: Once sold, the transfer of monies may have some impact on your tax status. There are methods to defer some taxes while others must be attended to quickly. The myriad of details will require an accountant who works in this area and is an expert at safeguarding both your funds now and in the near future.
As Real Estate Professionals
We understand the lure of “saving money” on a high-value sale. However, on average, the amount of time, stress, and resources needed to properly sell a residential home vastly outweigh the commission “saved”. The Sharon Quataert Team has serviced homeowners in our region for more than 30 years. We’re ready today to make your selling experience a positive one and look forward to serving you. Call us today for a consultation on how to make the most of your home sale.
