Are you thinking of selling your home and are on the fence about enlisting the help of an agent? This type of transaction is called “For Sale By Owner,” and it is becoming increasingly popular in today’s market. While many sellers still embrace the idea of having a real estate guide, others wonder if they couldn’t make use of all of the tools available and handle the task themselves. It’s easy to see why this has become a major decision point.
Thanks to modern technology, it’s easier than ever to uncover relevant statistics and gain insight into the current market. If you know your way around social media and are handy with a smartphone, you may even be able to bring your listing to the attention of some potential buyers.
Unfortunately, selling a home successfully isn’t nearly as simple as it seems. Achieving the optimum outcome involves much more than throwing together a listing, posting it online, and waiting for the offers to roll in.
If you’re considering going the for-sale-by-owner route, you’ll need a high level of expertise to achieve the best outcome possible. Ultimately, your decision will depend on your skill level and the amount of time you have available to perform all essential selling activities.
Know What You’re Up Against
Let’s imagine that you’ve decided to forgo the service of a real estate agent. It may be to save money, or you may just like doing things for yourself. In either case, you now become what we call a “self-represented” party. However, just remember that you are only half of the equation. In order to sell a home, you have to have a buyer. And in most cases, your buyer will be working with a real estate agent even if you aren’t.
Under the Trust in Real Estate Act (TRESA), which was introduced in 2023, all real estate agents have a fiduciary duty toward their clients. This means they must act in their client’s best interest at all times – even if it’s at the other party’s expense.
Put another way, the buyer agent is legally obligated to help their client secure a home with the best possible terms and at the lowest possible price. This goes against all of your goals as the seller as you will be up against a well-trained professional and expert negotiator.
In addition, your agent must disclose any information they encounter that could help their client. If they find out that you have an offer on another property and are counting on a fast sale, you can bet that will get back to the buyer, who now knows that they have the upper hand. Unless you have a high degree of knowledge and skill, having representation of your own is the best way to ensure you receive a fair price for your home.
The more you know before putting your home on the market, the better. The posts below will make you a better informed seller:
- Selling Your Home? Here’s How to Maximize its Value in Any Market
- What You Need to Know About Closing Costs in Toronto
- What Is Your Home Worth Today?
Local Market Expertise
Every step in the selling process should be informed by in-depth local market knowledge. Before you put your home up for sale, you’ll need a thorough analysis of recent sales data for listings similar to yours in your neighbourhood. And it’s not enough to know the stats; you also need to know what they mean and how they will impact your strategy.
For example, a house in your neighbourhood may have sold for $1.5 million, but that’s after the current owner invested $50,000 in strategic renovations. Without knowing what’s trending with today’s buyers, you’ll run the risk of setting the wrong price, which could mean selling your home below market value (or failing to sell it at all).
Whether you’re identifying your most likely buyer, deciding what upgrades will increase the value of your home, setting a compelling price point, or entering into negotiations, a firm grasp on what’s happening in the local market is absolutely essential.
Home Marketing Expertise
Effective marketing isn’t just about getting the most exposure for your listing. You also want to ensure you’re targeting your message to the right people. Otherwise, you may have people coming in for showings more out of curiosity than a real intention to buy. The other alternative is that no one pays any attention to your listing at all. Neither of these scenarios bode well for selling your home.
A skilled real estate agent will have the tools and insight to identify buyers who are most likely to place a fair offer. They will then work to create a highly-appealing listing to attract them.
For example, low-quality images are one of the biggest turnoffs for buyers, while failing to market your home in the right places will limit who sees them in the first place. To sell effectively without an agent, you should have professional-grade staging and photography skills (or seek help from someone who does). You should also know how to access the right buyers and networks—through the multiple listing service (MLS®) and appropriate marketing avenues.
Before you even begin marketing your home, however, you must ensure it is immaculate. In addition to decluttering and cleaning, you may want to perform a few minor repairs so nothing distracts potential buyers from imagining themselves living there. Having trustworthy contractors and tradespeople in your network will be invaluable.
Can You Negotiate Effectively?
Negotiating isn’t a skill we’re taught in school, and few people have the opportunity to do it regularly. If you’ve worked in sales, you may have a solid understanding of how negotiations work. That said, the process is unique when it comes to selling a home.
It starts with getting access to your local real estate board and familiarizing yourself with recent sales data for homes comparable to yours. Knowing how to use this information to your advantage is critical if you want to command top dollar for the market. You should also have a basic understanding of home-seller psychology, since people tend to be emotional when they’re selling (or buying) their home.
Do Your Buyers Feel Comfortable With the Process?
In spite of your best efforts, most buyers will feel uncomfortable when dealing directly with the homeowner. They want to be able to ask questions and view your home without fear of offending you.
You should also be prepared to answer frequently-asked buyer questions. Know the age and condition of your home’s major systems and structures (such as your HVAC system and roof), and be aware of any potential issues you should disclose.
Successful showings begin with beautiful presentation. The posts below will help you impress potential buyers:
- 5 Toronto Furniture Stores To Give Your Home A Makeover
- Fabulous Lighting – Illuminate Your Home on Any Budget
- Is Staging Your House to Sell Still a Good Idea?
You May Work Harder for Less
As you can imagine, selling a house FSBO is a lot of work. There is a reason most successful real estate agents work in the industry full-time – because it is a serious business that takes a significant amount of training and experience. If you do manage to sell your home by yourself, there’s actually a good chance that you will earn less than you should, even after accounting for real estate commissions.
Working with a professional real estate agent takes a lot of stress and unnecessary effort off of your plate while helping you to fully maximize the value of your sale. Performing in-depth market research, understanding how to present your home, deciding on a price point, and crafting an offer strategy are just a few essential skills that go into achieving outstanding results.
If you’re not 100% sure you have the time or expertise for the task, you should strongly consider finding an agent you’re comfortable with. It could mean the difference between a successful outcome and one that falls short of your expectations.
Preparing to put your home on the market? We have the experience and local market knowledge to help. Get in touch at erica@ericareddy.com or call 416.443.0300, and we’ll discuss your strategy.
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