I can absolutely see why someone would want to try to sell their home privately – it’s all about the money. What perplexes me is why a seller would think a buyer would choose to purchase privately, with no representation. You see, when a Realtor represents a buyer it costs the buyer nothing and the buyer get a multitude of services for FREE.
Now, let’s look at what the private seller typically does. They look at the MLS to see what other houses like theirs are listed for. Then (because it’s human nature) they determine that their house is superiour so up goes the asking price. But surely they’re going to discount it in some fashion because they’re saving on commission? Yes, it would be logical for a buyer to assume that the seller would share the commission savings but, this generally is not what we see when the house is listed.
It is also worth noting that the market value of a home is not determined until it is sold. So, using active listings as comparables to determine a list price is not the correct approach.
Here’s a sampling of the services provided by a Realtor for a buyer
- find & notify buyer of new property listings
- schedule showings
- provide background data on listings (eg comparables-”solds”)
- provide data on competition (ie active listings)
- answer any number of questions the buyer will have
- prepare all necessary legal documents
- bring about a successful negotiation (ie best price/terms)
- provide professional contacts if required (eg home inspectors, lawyers, mortgage specialists etc.)
- ensure all documents are complete & forwarded to appropriate professionals (eg. lawyer, mortgage lender etc)
- bring their experiences & expertise to every step of the buying process
Just some food for thought.
Jean
