The Pitfalls of Selling Your Own Property
By JD Esajian on November 1, 2013
When you are working under budget constraints or trying to squeeze every possible penny to make a profit, it can change the way you approach a project. Accordingly, many investors will attempt to sell their properties without the assistance of an agent or broker. Attempting to sell a property by yourself, however, may not contribute to your bottom line in the way you had anticipated. While it may appear to save money on the real estate commission, selling your own property could turn out to be counterproductive on several levels.
Investors selling their own properties are ultimately stepping over the dollar to pick up the penny. More importantly, there are better things you can be doing with your time. If you want to sell your home for top dollar, you need to do everything possible to increase exposure and generate interest. You may get lucky finding a buyer through your social media efforts or through Craigslist, but you can spend weeks, if not months, waiting for a buyer that may never come. Even if you do manage to generate interest, you will be responsible for all of the property showings and reviewing of all legal forms and contracts.
If you have been waiting weeks to get an offer, any selling point will start to look good. At this point, you are subjecting yourself to rash decision making. The alternative is to spend the money and enlist the services of a local realtor. Sure, the commission may seem excessive, but by doing this you ensure maximum exposure and attention that you could probably never get through any advertising you do yourself. The main reason for this is the access to the MLS (multiple listing service). This is the site that most realtors check daily to alert them of any new listings. If it is on the MLS, a majority of realtors will immediately be interested in your property.
Listing the property with a realtor and on the MLS will not guarantee that offers will come pouring in, but it does give you the best chance. Contrary to what you may think, realtors do earn their money. They advertise the property; either through their own website, the company website, local newspaper ads or through open houses. They handle all of the showings and paperwork on the property. Since there is a commission for the buying realtor, you increase your chances of a realtor showing your property.
The goal for selling a property is to create demand and ideally create a bidding war. Using a realtor is the best way to do this. What you lose in commission money you can make up for by selling at a higher price. Don’t let the tales of a homeowner who got lucky finding a buyer persuade you in thinking that it is easy. Successful sales by owners do happen, but they are more likely to happen with the help of a realtor.
When you own a property, you can do almost anything you want with it. You have the option of selling on your own, but if you want to sell for the highest amount and make the transaction as smooth as possible, you will use a realtor.