It is completely understandable that people try to sell their own home.
If you consider the perception that many people were left with when dealing with certain estate agents, it is completely logical that they should believe that they could do better or at very worse – no worse.
Over the period of more than 15 years I have come across the following:
- The most common one is, of course, saving the commission.
- Having had a previous bad experience.
- Getting caught up in the hype of the internet is the answer to everything.
- Not understanding what a real professional can do.
In a recent FNB property barometer survey, it was found that despite sellers having more tools than ever before in history (even the assistance of service like Private Property) – For Sale by Owner sales are down, way down. Now when one considers that that figure was low to start with and family transactions are included – the picture looks incredibly bleak for the owner trying to sell his or her own property.
Why is this so?
- Selling your property may appear easy but it is fraught with difficulties which sellers do not even see.
- Determining something as important as the selling price is tricky – and no it’s not what you value the property at.
- Buyers are more armed with information than ever before and they know what on the market and they want a great deal.
- Buyers also are quick to deduct 5% from a private sale because “you don’t have an agent”.
- Sellers often do not realize what they have to disclose putting themselves at risk, without even knowing it.
- A Seller underestimates the amount of work that goes into marketing a home and the inconvenience for them – where agents tend to do a lot of the work behind the scenes.
- Sellers often armed with what they have learned from TV think they can do the same – TV is staged and in reality – things don’t work out like that.
- Real Estate is deceptively complex – it seems straight forward but one needs to know about title deed restrictions, servitudes, latest legislation, CPA, et cetera.
- Private sellers often price too high and in some cases too low. In one recent case, a seller sold their property 10% below market value – an agent would have charged 5% and they would have still made 5% extra.
- Sellers often are not objective enough – they are linked to the property and react badly when buyers criticize the property.
- Private sales attract bargain hunters and investors keen to secure a deal.
- Our office’s screen buyers before taking them to a client’s property – which does not happen with private sellers.
- As an estate agent (and as ant attorney) have years of negotiation experience – we do it every day, all day – sellers often confuse haggling with negotiation. The buyer may in some cases be more skilled than the seller, with negative results for the seller.
- What happened in many cases you as the seller does not have an agent but gets phoned by buyers agents who have prequalified buyers and introducing their buyer is subject to agreeing to pay commission.
- The experience of a great agent is priceless – just ask any person who tried it alone or hired a cowboy/cowgirl agent.
- The list goes on …
There are many professions or trades whose work can be done by the person in the street – however, results may vary. When dealing with you most valuable asset – can you really afford to gamble with it in a field you do not know?
If you are an owner considering your options or an owner who has tried to sell their property themselves and realized its taxing – contact me and we can talk.
The Commission can be negotiated but the pain and suffering of selling on your own – well that is just the business.