Marte Cliff is a Freelance Copywriter with a 19 year background in real estate sales. She has extensive experience in writing for real estate, as well as for a variety of other businesses. Marte is also an animal advocate and co-founder of Priest Rivr Animal Rescue. She writes all news articles, fund raising letters, and newsletters for the organization. In addition, she offers discounted rates for other rescue groups needing fund raising help.
When you decide to sell a house you usually want it done in a short period of time. You want to use the best methods to attract that perfect buyer, and you'd like to do it at the least possible cost.
With that in mind, some people get creative. Instead of merely calling a Realtor and listing the house, they try to think of ways that might work better. Here are 5 different ways to choose from:
1. Give one Realtor an exclusive listing on the house - meaning that no matter who sells it, your listing agent will be paid a share of the commission.
2. Give every Realtor in the area access through an "Open Listing."
3. Talk two Realtors into doing a "Co-list."
4. Sell it yourself as a FSBO and welcome participation from Realtors - meaning you'll pay them the normal selling side of the commission while you retain the listing side.
5. Sell it yourself as a FSBO and exclude participation from Realtors.
Only two of these methods are beneficial to you.
- #1: Give an agent an exclusive and
- #4: Sell it yourself and welcome Realtors.
Here's why:
Selling with an agent
When you give an agent an exclusive listing, that agent will do your marketing. He or she will promote your house to buyers and also to other Realtors. He'll also help you with all the selling details such as arranging inspections, letting the appraiser in while you're off at work, and staying on top of the closing process.
On the other hand, when you extend the invitation to all Realtors to sell your house, none of them will market it. No one will want to waste their time because someone else could come in and sell it and they wouldn't even know it unless they had called you. The chance of selling with this method is slim.
Co-listings aren't much better. Each agent knows that no matter what, they're going to split the listing side of the fee with someone else. Neither will want to spend money on marketing and neither will be very interested in escorting other agents to the house. They only have so many hours in a day, and they can better spend that time marketing houses that will result in a full commission.
Selling as a FSBO
When you sell it yourself and welcome Realtors you'll have to do the work of promoting the house to them, but they'll be interested because they'll know if they sell it they'll be paid.
You DO want Realtors to bring their customers, because the majority of buyers do go first to an agent. Secondly, when buyers approach a FSBO they expect you to lower your price and give them the benefit of the money you aren't paying the Realtor. I know, you'll tell them the price already reflects that fact, but that idea is hard to overcome.
Should you choose a Realtor or market it yourself?
That all depends on your time constraints, your knowledge, your personality, and your tolerance levels. If you're at home all day every day, and if you know a lot about the market and the selling process, you might be successful as a FSBO.
However, if you have to get out of the house and go to work every day, or if you aren't sure of the steps that must be taken before closing, you need an agent. You also need an agent if you are shy or if you are easily upset by rudeness.
Some buyers can verbally tear a house up to such an extent that you wonder why they would even consider buying something they hated so much! Of course they don't hate it, they're just trying to beat down the price, but it can still be unsettling. If that will upset you, let your agent hear it so you don't have to.
Your agent is also a good buffer to use during negotiations. Buyers who are talking directly to you are apt to say "Would you take…" and expect an immediate answer. And unless the offer is "Full price, all cash, and no contingencies," you should never respond to a verbal offer, nor should you answer immediately.
For one thing, verbal offers don't contain important details - details that can come back later under the label "Misunderstandings." Secondly, if forced to answer immediately you don't have time to thoroughly consider the offer. It's better to have a little time to think before you answer.
If a buyer does ask you that question, your answer should always be "I don't know. Put it in writing and we'll consider it."
If you do choose to hire an agent, remember that he or she is working to earn a living. So don't ask to have the commission rate lowered just for you. The agent may agree if you really push, but you'll get less service and your relationship with the agent will be compromised.
Hire good people, pay them what they're worth, and let them do the job!
Marte Cliff is a Freelance Copywriter specializing in writing for real estate and related industries. Her e-book, the Land Buyer's Survival Guide, offers 18 questions buyers must answer before finalizing a land purchase. Read about it at http://marte-cliff.com/Survival.html. While there, sign up for her free advertising ezine. Marte also offers a no-obligation critique of your present advertising.