FOR SALE BY OWNER: Is it really a great choice?

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John thought it was a good idea to sell his house BY OWNER.  After all, his house was located in Raleigh in a popular neighborhood and houses seemed to sell quickly at top dollar.  So, he wanted to avoid paying commission….well, he wanted to avoid paying a listing agent commission of 3-3.5%(approximately).  He still was paying Buyers Agents to bring buyer clients to see view his home, so he knew he would have to pay a Buyers Agent Commission of 2.4-3%.

How does that initial math work in John’s mind?  John thought he sell his home for a whopping $325,000 and he would pay a 2.8% Buyer Agent Commission of $9100.  He’s thinking his NET is $315,900

Let’s walk through why it is NOT a good idea to sell you house by owner:

 

FAILURE TO PREPARE YOUR HOME FOR THE MARKET

No, this doesn’t mean that you clean up and tidy/stage your home.  This means so much more as a licensed agent can tell you that studies the market daily:

  • Completing the required NC Residential Disclosure and Mineral Oil and Gas Rights (yes!)
  • Completing repairs
  • Removing furniture and de-cluttering to appeal to the masses
  • Enhancing curb appeal
  • Professionally cleaned

 

LACK OF MARKETING REACH

 

The power of the Multiple Listing Service (MLS) by REALTORS® is the key.  When properties are entered into MLS, they are syndicated to dozens and dozens websites through the licensed agent affiliations to subscriptions and Boards of Realtors.  Many sites will not accept a FSBO listing.

 

DEALING WITH BUYERS AND AGENTS

 

A big part of a professional agent’s job is dealing with inquiries and showings.  Are these buyers even qualified to buy a home? Can you imagine…Here the buyers come, to see your home and there you are….showing them around.  Questions come about like, when is the last time the hot water heater was inspected?  Was the HVAC serviced? Do you hear the noise from cars on THAT road nearby?  How are the neighbors? (can you even answer that?) Fun times.  Is it weird for the buyer to discuss the home with you (the owner)?  Yes, probably so.

 

Many buyers just move on to another listing so they don’t have to feel awkward about dealing with the owner. Remember, it doesn’t cost the buyer any commission to buy a home – that’s paid by the Seller.

 

INSPECTION RESULTS – UH OH.

 

So, you are under contract and the buyer is doing his/her due diligence and the home inspection happens and finds repairs needed that you either didn’t know about or didn’t want to deal with.

 

And then, here it comes….they want YOU to pay for the repairs or give $$$ off the sales price.  Bam. You could walk away from the deal as a Seller, but you know another inspector will find the same items and you’ll be right back in the same predicament.

 

A REALTOR® is an expert at negotiating on their client’s behalf and is market savvy enough to know what is typical and standard in similar circumstances.

 

MISTAKES CAN BE COSTLY

John is selling his house advertised with hardwood floors.  But….the floors are really laminate and the new owner discovers this after the sale and decides to sue John.  Does John have errors and omissions insurance to protect him?  No.  So, that cost John $15,000 to settle.  Ooops.  This doesn’t always happen of course, but it can.

A licensed agent knows how to navigate and mitigate risk.

CONTRACTS AND CLOSING

So many documents, so little time to spend the 90 hours it takes to do a crash course in real estate and understand all the language and law.  Hire an agent and they have great attorney partners that get you through a smooth closing, while paying attention to NC law.

THE REAL MATH

John sold his home after 7 months for $299,000, which was reduced for repairs costs from the home inspection and then paid $15,000 for the hardwood flooring mistake and he paid the buyers agent commission of $9100.  The market studies showed he should have sold his home in 30 days.  The carrying costs on the additional 6 months was apprx. $17,000 (mortgage and utilities).

John’s net house sale was $257,900

Let’s say he did not have to pay for the $15,000 hardwood flooring mistake….his net would be $272,900.

Had John hired a REALTOR®, the data shows he would have sold his home for $319,000 (he priced his home too high at $325,000).  Due Diligence out of pocket was $1,000.  He paid 6% commission at $19,080.  His home was sold in 28 days.  He saved $17k in carrying costs.

 

His net would have been: $299,920.  John would have made an additional $27,020 by hiring a licensed agent.  

 

Let NC Pro Realty Group do the math and analyze this for you before deciding to do For Sale By Owner.  We’ve got your back in so many ways.

Organize, Depersonalize & Declutter, Oh My: Tips for Selling Your Home in NC

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We’ve all heard that it’s all about the little things, right? Well, it’s not a fable AND it can make a big difference when you’re trying to sell your home.

When you decide to sell your North Carolina home, one of the first things you should do is clean out! And although it sounds daunting, it’s best to start decluttering and clearing out prior to putting your home on the market.

Here are some great tips that Jill Rigsbee of NC Pro Realty Group recommends.

 

Organize Bedroom Closets and Storage Cabinets

If you want to sell a home, sell it to a woman. And what’s a great way to sell a home to a woman? Fabulous closets. Yup! We said it! Fabulous closets. Prospective home buyers will be curious about storage space and will want to check closets and cabinets by opening every door. It’s important to make sure these are organized, as it sends a negative message if your storage spaces are cluttered with items falling out.

When a buyer sees everything organized down to the last detail, it shows that you take care of your possessions and likely took good care of the house.

Some ways to do that in the kitchen are:

  • By alphabetizing the spice jars
  • Neatly stack the dishes
  • Turn all of the coffee cup handles so they’re facing the same way. In closets, shirts should be buttoned and hung together, and shoes should be lined up neatly.

Some ways to do that in a bedroom closet are:

  • Color coordinate everything!
  • Hang the short sleeves, long sleeves, blazers, sweaters, pants, skirts, etc. hung together, in color order.
  • Have your shirts buttoned and hung together
  • All of your shoes should be lined up neatly.

 

Depersonalize Your House 

When a potential buyer walks into your home, the first thing they want to see is themselves in there, not you. A great way to help that process along is to pack up your personal photographs, family heirlooms, and other objects and clutter that might distract potential buyers from a sale. You want to present buyers with a homey, clean  and inviting environment so they can imagine the home perhaps decorated with their stuff. Their photographs. Their furniture. Their art. Depersonalizing your home makes it easier for potential buyers to visualize how the home might look filled with their own items.

Prior to putting your home on the market, go through each room in your home, one at a time.

Declutter Your House

If you’re like most people, you’ve got lots of stuff. Lots and lots of stuff! Many of us tend to collect a rather large quantity of items over the years. There are loads of reasons that people keep that stuff. Everything from having emotional attachments to it, an intention to reuse or fix the something – sometime in the future, or you’ve deemed it as a treasured heirloom. For many items, if you haven’t used them in over a year, you probably don’t need them. (OH – THE HORROR)

Do yourself a huge favor and repurpose those items in a useful way by donating them to a charity or nonprofit organization such as