This topic comes up a few times a year. This year more than ever as the market continues to be strong people are asking themselves this. Let’s go over some facts, myths and numbers on this topic.
So can you sell your house privately? Yes of course you can and people do. You can do almost the whole process on your own. You must have a lawyer of course and I highly recommend you hire someone you know and can trust. Unless you have bought and sold houses a few times there are legal changes happening all the time and you want someone who knows what they are doing to review your documents.
Now let’s talk about why you may not want to do a FSBO in a hot market.
First the market and pricing your house. Unless you currently live under a rock we all have heard how the market is taking off. You need to know if the market is staying like that and if it changes what change is happening. Also, we can all look at list prices and property details. However, you need to fine tune the data to compare properties equally. The sale price compared to the list price of a home plays a huge factor as well. Currently we are seeing some properties going over sale price by quite a bit. In saying that does that mean you should list your house higher? Maybe it’s too high for the market or doesn’t directly compare to other houses on the market. If you list to high it puts you in place where you have to do a price change, re list and start again.
Now lets have a chat about documents and contracts. These can be pulled off the internet or from your lawyer, (please don’t get them online!). My contracts are updated through my real estate board as soon as a new law comes into place. These contracts protect me, you the seller and the buyer. You do not want to sign something that is out of date or incorrect and have a mess on your hands later on.
COVID! Ugh will this ever end. Our real estate companies and boards have put so many systems in place to keep everyone safe its truly outstanding how well they have done in such a short time. With the new online systems in place it is making this situation much easier. Showings are scheduled through our online systems so we know exactly who is there, when, how long and can make sure people do not overlap. Also each agent must ensure their clients are healthy and have not traveled. We are all adhering to strict no touch policies as well.
I understand why the thought is there, sell your house yourself and save money! Let’s break this down. If you hire a reliable, respectable and hardworking agent they are doing so much to keep you safe and get you the most money for your home. Do to our changing climate the use of additional photo’s is very common. We used to be able to post about 20 photo’s and now we can post over 40! We use professional photographers who capture every aspect of the house. Also, with the use of drone’s we can show the outside of the home and the neighbourhood. Floor plans are another great way to showcase your home so that only the people who are interested are coming to look at your home. Marketing is another key, we as realtors are using. With our professional photo’s we can get your home out across all aspects of social media. Most importantly your home is listed on realtor.ca and this is where almost everyone goes to do a home search. So my question would be where are you attracting your buyers from???
Let’s talk numbers. The standard commission is 5%, 2.5% to the buyers agent and 2.5% to the selling agent, (yes standard not set ). If you try and sell your house and ask $500,000 you basically pocket those monies IF you find a buyer who will pay that. If you hire an agent they assist you with preparing your home for sale, marketing and pricing accordingly. If you prepare and your home is priced correctly the way the market currently is we are finding properties are selling over list price anywhere from $25,000 to $100,000 over. Now if I’ve done my math that means even more money in your pocket!!!