For sale by Owner Versus Using Realtor

FSBO VS Realtor

When you decide to sell your home, you have 2 options. You can either sell it on your own as a For Sale By Owner, or use a professional Realtor. Each option has the main goal to get it sold, however the methods used by each may differ drastically. Below are comparisons of how typical real estate aspects are handled by both a for sale by owner and a standard realtor.

Pricing

FSBO

When selling on your own, you will decide on the price you want to sell your property. FSBO usually will do this by looking on FREE public websites like Zillow to determine value. These sites have information, but how relevant and accurate is unknown. FSBOs also use what their neighbors have sold for or what the neighbor’s current home is being sold for. Each home will have different square feet, updates, and condition of the property itself, which will affect value. Emotional value can lead to pricing the home wrong.

Realtor

Realtors have tools that can help define a value. They have access to all the relevant comps that have sold in the area. They know which can and cannot be used for your specific home. Realtors will also walk the property to review it and then compare back to the comps. Adjustments will be made for updates, condition, square feet, appliances and more. A Realtor does not have emotion when it comes to pricing. It is based on data and the home itself.

See more on Home Valuation Here

Forms

FSBO

All forms must be purchased. A Seller must provide certain documents to potential buyers to keep in compliance. Sometimes the sellers cannot get access to the documents needed. If a buyer without an agent wants to make an offer, one of the parties must seek out a purchase agreement that both sides agree on using. You should not use a FREE or general agreement.

Realtor

Realtor has access to all documents needed to put a home up for sale. From listing agreements to required documents that must be accessible by other Realtors. A Realtor also has a good purchase agreement that has been used many times.

Marketing

FSBO

When you are selling the property on your own, you must find the best ways to get it in front of potential buyers. There are several websites out there and social media that can be used. Some of these websites connect with others, but you will be doing the marketing one by one, setting up new profiles, logins, and listings. When you make changes, you will need to login to each one and update the information and/or photos. Social media is good, but like real estate websites, you will have to post to each individually.

Realtor

When a Realtor does the marketing, they use the MLS. The MLS is a portal for thousands of Realtors and real estate professionals to search and find homes for their clients. The MLS also connects to thousands of other websites automatically sending out information on listed homes to be seen by potential buyers. When changes are made on the MLS, they are updated on the 3rd party websites in seconds. Realtors also use social media to connect with potential buyers and other Realtors. There are many platforms and sub-groups within these platforms that Realtors use. One of the biggest tools Realtors use, is email (CRM) to get the listing in front of Realtors and clients. Realtors keep solid databases of contacts to be able to market to them in a click of a button.

Showing Houses

FSBO

Someone selling the home on their own will be taking all the calls on their own, setting up appointments, tracking the appointments, and then following up on the appointments. The FSBO must find ways to verify who is coming to see the home. How does a FSBO ensure that the people coming to their home, to go into their personal space, are Realtors with potential buyers and not just people wanting to wander through the home. FSBO also must provide access information to those who request to see the home. They provide lock boxes, leave the door open or stay to let the requested viewer in.

Realtors

A Realtor working to sell your home will monitor all showing requests. Realtors use technology and tools like ShowingTime to approve or reject showings based on the needs of their clients. Those who have access to request showings through this tool are licensed Realtors, allowing the Realtor and their client the safety of knowing that the person showing the home is legit. The tool also only allows lockbox codes once the showing is approved. Another tool Realtors use is electronic lockboxes. This adds another level of security, with being able to track access when it starts and ends. It also does not have the same code being used over and over. It uses the Realtors phone to connect with the box to get to the key. Realtors also get showing feedback from the showings that allow them to analyze the thoughts of the other Realtors and clients who have seen the property.

Offers

FSBO

When an offer comes in to a FSBO, the home seller must review the doc and understand it in its entirety. Many purchase agreements have legal terms and deadlines that can affect the outcome of the sale. FSBO must negotiate with a professional Realtor. Another part of the offer is the review of the buyer’s mortgage approval. If there is a cash offer, this can be another challenge when requesting the docs to show the buyer can close cash.

Realtor

A Realtor handles offers of real estate for a living. They have seen the various wording and versions of local real estate companies and knows what to look for regarding price, deadlines, and concessions. Purchase agreements seem like boiler plates, but they can come with some legal issues if one side fails to perform. If there are issues found after the bottom line, it can be difficult, if impossible to correct. A Realtor knows what to review to not have issues. Realtors are also professionals when it comes to reviewing approvals from mortgage companies. They know the right questions to ask the mortgage companies. If a cash offer comes in, the Realtor knows how to request and review the right documents to make sure the cash is available to close.

Post Offer

FSBO

After the bottom line of an offer the seller must make their home available and handle the inspection and appraisal, along with requested walk-throughs. Depending on the outcome of the inspection and appraisal more negotiations may happen to request a reduction of price or change to the terms of the purchase agreement. This can be difficult for a FSBO since they do not have access to comps and other current information or understand the write up of the inspection. It is much harder for a FSBO to argue appraisal valuation and the buyer’s agent will not help since they want the best pricing for the buyer. They do not work for seller.

Realtor

A Realtor will handle the inspection and appraisal. Your Realtor will review both the inspection and appraisal as it comes in. If there are additional negotiations, they will review the requests and make their opinions. Some buyer’s agents look to offer one price, knowing they will ask for a reduction after an inspection. Realtors also can review inspections to see if the requests are correct or just a way of getting a price reduction. A Realtor can help argue valuation if the appraisal comes in lower than the purchase price by proving comps that are recent and that match the subject property. A Realtor who prices the house right will have the information to back up value when an appraisal comes in lower than expected.

Closing

FSBO

When documents come in for the closing. A FSBO will need to look at all the costs and understand what is being charged to them and to the buyers. A closing statement has a lot of fees, commissions, payoffs, and taxes. If there are errors in items like commission, you will need to negotiate and work that out with the buyers Realtor. Doing this can delay or cause the closing to not happen.

Realtor

A Realtor knows how to review all closing documents from the closing statement, the title work, and all docs required to sign. A Realtor will make sure that all charges are to the right party in order to have a smooth closing. Any discrepancies the Realtor should have documentation to back it up, especially commission, which is part of the listing.

 

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email at info@josephwalterrealty.com

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

For Sale by Owner and the Buyers Agent

Being a For Sale by Owner or FSBO, you will most likely still be dealing with a buyer’s agent. Many times, these buyer’s agent will seem as though they are there to help you, but THEY DO NOT REPRESENT YOU – THEY REPRESENT THE BUYER.

When you are selling a property or business on your own, be aware of the overly helpful buyer’s agent who has NO AGENCY AGREEMENT with you. They will present the offers on their forms and make all sorts of suggestions which will “HELP THE PROCESS ALONG” – most likely in their clients’ favor.

Read the purchase agreements all the way through and look for some of the following items:

  • OTHER ITEMS SECTION:
    • This is a section in almost all purchase agreements where custom requests are done, such as:
      • Seller to Pay XXX in Concessions
      • Seller to make all repairs from inspection
      • No EMD
      • EMD to be returned to buyer under all circumstances
    • Property Description Section:
      • Lists Appliances
      • Does it list other items you did not want to include
    • Taxes – make sure you are only paying for taxes on the days you are responsible.
    • Repairs – some purchase agreements have a section for inspection and municipal repairs and who pays them.

 

The buyer’s agent may also want to suggest you work with their title company. If your state allows, choose to do a split closing where you have a title company separate from theirs. Some states the seller picks the title company and other states the buyer does. There are also some states where an attorney is involved in all closings. You may want to reach out to a title company in your area to find out how your state does closings – you can call Inked Title who works nationally and someone can help provide information at 248-617-0004 or email info@inkedtitle.com

Do not feel pressured to use any services offered by the buyer’s agent.

(title company, home warranty, repair company, etc.)

 

Selling your home on your own has many moving pieces. Stay in control of your deal and stay in contact with the people you choose to provide services. A lawyer is always a good idea or a transaction coordinator to help review documents and get you to the closing with the greatest of ease.

A transaction coordinator is a licensed real estate professional who will charge a small fee or percentage of the sales price (much lower than the full service Realtor) to review docs, may help negotiate, and handle the process from offer to close to you getting paid.

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email at info@josephwalterrealty.com

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

 

 

 

 

Preparing for Closing

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When closing on a property, there is more than just the paperwork and the signing. Selling your home has many moving pieces and many people involved. That is why preparing for closing is crucial for it to run smooth.

Closing check list

Keys

Interior

Cleaning

Exterior

Misc.

Utility Providers

Closing Checklist

Keys

You would think this would be a no brainer, but many sellers leave only the front door keys. Forgetting the many other doors in the house have key access.

  • Garage
  • Backdoor
  • Shed
  • Interior doors
  • Other outside building or second garage

Interior

Replace the light bulbs or provide the new buyer with the NAME of the device they will need to control the lights and other functions of the house

Alexa, Google Home, or other internet home voice activated devices

Voice activated devices have passwords and set up processes the new buyer may not be able to do until their internet or devices arrive – DO NOT LEAVE THEM IN THE DARK

Cleaning

Seems straight forward, but with moving and people coming in and out of the house, many people forget to leave the home clean for the buyers.

There are cleaning companies that you can hire that can come into an empty house and get it done quickly or within reasonable time to let your buyer come into a clean home

Exterior

Much like the inside of the house, a maintained yard can also add to the welcome feel

Maintain your yard

If you have dogs, PICK UP THE POOP!!!!! Do not leave your dogs poop to be picked up by someone else

Misc.

Garage door remotes

Front door or other door keypad codes

Garage door keypad codes

Instruction manuals and warranties

Utility providers

Leave names and numbers of your utility providers

  • Gas
  • Electric
  • Cable
  • Internet
  • Garbage

What is also helpful is if you have local repair people or maintenance people you used on these items, provide their names and numbers

If you have the booklets that came with the appliances, furnace, hot water tank, water softener, fireplace, pool, well, septic or other feature, place them in a drawer that would be easy to find – this helps a new buyer ease into the home faster

Prepared for Closing

There are so many moving pieces when it comes to moving from your home. We hope it can be as enjoyable to you as it is to the new buyers. It can be a stressful time, but with the right organization and enough time (time can be the issue), your move out and the new buyers move it can be a memorable day.

 

If you have a question about buying or selling your home, please reach out to Joseph Walter Realtyat 248-294-7849 or via email: info@josephwalterrealty.com 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

Michigan Licensed Broker 6505431020
Ohio Licensed Broker 2020008974
Florida Licensed Broker BK3491231
Texas Licensed Broker 9010704
Arkansas Licensed Broker PB00090741
Georgia Licensed Broker 79028

More states 2021


3275 Martin Parkway, Ste. 125, Walled Lake, MI 48390

Preparing For Closing

 

 

5 Reasons Why Homes Don’t Sell

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Listing Expiration

Even with all the benefits of listing on the MLS, thousands of listings expire nationwide daily. A common listing term is 180 days or 6 months, starting when property is first marked active on the MLS. An Expiration on the MLS usually triggers an open floodgate of hungry listing agent calls. Expired status and Days on Market are always recorded in the property’s history (PRD). Needless to say, expiration should be avoided at all costs, to do this you will need to limit days on market.

Avoid High Days On Market

Buyers jump at the chance to offer a reduced asking price when they see extended days on market. High days on market results in a downward slope of attractiveness. Every counts on the MLS

.a but can be a red flag to buyers that suggests something is wrong with the property

In the digital age, all market data is a click away for most realtors.  So selling within a reasonable timeframe is highly important.

 5 reasons Why Homes Don’t Sell And How To Avoid Them

  1. Pricing

  2. Curb Appeal

  3. Photos and Video

  4. Specific Problems

  5. Bad Advice

 

1. Pricing

Less is More

Pricing higher than what the market can bare is fairly common for sellers to do. However, being overpriced is a surefire way to limit your ability to sell. Pricing is the #1 sale killer in real estate. When the pricing on a home does not fit, it will not sell. 

A good rule of thumb is to look at changing price after a few days or more of little to no activity.

Over-pricing leads to extended days on market, which results in a downward slope of attractiveness. Although days on market does not technically affect the value of the home, it will affect the value of buyer offers. 

Owners often believe that the money put into the home increases its value, this is false. Putting money into the home can increase the value, but  $150,000 in upgrades, does not equate to a $150,000 price increase.

Pricing Solutions

A good way to avoid pricing issues is to make sure your Realtor prices it correctly. Realtors have access to all the comparable sales and can adjust for some differences in houses for the market.

Local Realtor professionals have accurate, real time data that allows them to value your property better than websites like Zillow.

More on Home Valuation

JWR Product: Comparative Market Analysis

2. Curb Appeal

Why is Curb Appeal Important?

Curb appeal is the attractiveness of a property when viewed from the street, hence the “curb”. Since the outside of a home is the first thing buyers see, putting extra time into a properties curb appeal can significantly improve it’s desirability. If the exterior catches a buyers eye, the odds of them viewing the property in person skyrockets!

Unfortunately, the saying “don’t judge a book by its cover” does not apply here. An exterior’s attractiveness is key to establishing a good first impression for buyers. If the exterior looks bad or needs work, buyers will likely skip over the listing entirely.

Improving Curb Appeal

You don’t need to put a ton of money into a home to have good curb appeal (unless there are serious issues). Maintaining the lawn and doing minor exterior maintenance is usually all it takes.

When a home goes up for sale, sellers should walk around the yard and see what can be done to improve it. Standing on the street as a buyer would is a good strategy for addressing potential 

Curb Appeal Check List

Questions sellers should ask.

  • Does the outside need a power wash?
  • Are there any tripping hazards?
  • Is there fading or chipping paint?
  • Do the windows need to be cleaned?
  • Are the gutters empty?
  • Is there any rotting wood or siding coming off?
  • Do trees or hedges need to be trimmed?
  • Any bald spots on the lawn?
  • How does the roof look?

3. Photos and Video

Today, buyers and their agents will almost always see photos and video before scheduling a showing. High quality media can instantly spark a buyers interest, while low quality media can instantly turn off potential buyers. Investing in good photos and video can improve listing activity significantly.

Cell Phone Photos

Though it is true that many cell phones today are fully capable 4k cameras, it’s recommended to avoid using  them for listing photos.

Phones and mobile editing apps are still very limited compared to professionally enhanced photos and videos shot on a DSLR Camera. Mobile formats are also often not aligned with MLS upload requirements so it is best to find correct settings online or let a professional handle it.

Too Much Photo and Video

Understandably, many sellers want to post as many pictures as possible of their property.  No matter the size of your home, overwhelming potential buyers with an abundance of photos is not advisable.

25 – 40 photos can easily represent your home, along with a video. Buyers can get bored and lose interest in the home when clicking through the photos. Use the best photos that show the best features of the home. Videos should not be movies. They should be short walk throughs of the home focusing on top selling features.

Hire a Pro

To improve interest and desirability for a listing, professional photos and video can do wonders.

Hiring a professional photographer/videographer is helpful to ensure a home sticks out and captures the attention of buyers . Many Realtors will pay for these photos and videos to be taken, but if they pay, they own the photos and they cannot be used in the future without their permission.

4. Too Much Work

Every home is unique and may have it’s own problems requiring attention. As homeowners, It is fun and exciting to customize our homes to represent ourselves, or just to be different. However, specific problems arise when it comes time to sell the home. Any Item that a buyer will want to change or update becomes a point of negotiation since it will equate to time, effort and money on the buyers side. This not beneficial to the seller

Solution

Since most buyers go into a home with their own visions in mind, creating as much neutral ground early on is important. Items like paint, appliances, fixtures, and other miscellaneous items should be attended to prior to marketing a property. Prioritize what you can and cannot do. The more updates, the better the pricing will be on the home. By putting the money into the home before, it will help make the home more appealing to buyers and many times allow for a quicker sale. Money in before saves on holding costs of a home sitting on the market.

5. Bad Advice

Bad advice can heavily add to the stress of selling a property. Avoiding bad advice in real estate will reduce headaches and get you to the closing table faster. The trick will be differentiating the good advice from the bad. Selling your home is stressful enough so getting accurate information from a professional is advised. An experienced real estate professional will have all the answers you need, or are connected to someone more experienced who does.

 

Conclusion

In the end the goal is to sell. This is a multi-step process that involves more people than just a seller and a buyer. It takes a team of professionals, from Realtors to photographers to title companies to inspectors, appraisers and administration people (and probably more that we do not see) to close a property completely. If just one thing above helps guide you to this amazing place we all love called the closing table, then we did something right today.

 

 

 

 

If you have a question about buying or selling your home, please reach out to Joseph Walter Realtyat 248-294-7849 or via email: info@josephwalterrealty.com 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

Michigan Licensed Broker 6505431020
Ohio Licensed Broker 2020008974
Florida Licensed Broker BK3491231
Texas Licensed Broker 9010704
Arkansas Licensed Broker PB00090741
Georgia Licensed Broker 79028

More states 2021


3275 Martin Parkway, Ste. 125, Walled Lake, MI 48390

Joseph Walter Realty

 

Marketing your Property

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Role of Marketing in Real Estate

If you want to sell by owner, you will have to take on the role of the marketing department.

Many for Sale by Owners only rely on free listing websites or the MLS to market their property. Depending on the market we are in, this can work in your favor. However, remember your home is now amongst hundreds if not thousands in your market, all trying to do the same thing.

Additional Marketing for your property

Additional marketing for the property is a common service for experienced realtors to do. This is where a majority of our time and expenses come in. A few examples are neighborhood mailers (yes they are still a thing in the digital age), advanced web marketing, email blasts and digital marketing on all the social media platforms.

Marketing your Property as a For sale By Owner

You should start by deciding an advertising budget and how you would like to use it toward selling your home. There is no magic number when it comes to budgeting and selling your home.

Lets start simple and work our way through some marketing options and you can start to decide in your head what you feel is appropriate to spend on the sale of your For Sale by Owner home.

MLS Only Listing Marketing

This markets your property on the MLS of your local area through a Broker, but still allows you to sell it For Sale by Owner. MLS Only listings are a common and inexpensive way to get seen by the Realtors in your area. You generally pay a small fee or flat fee, and the Broker will list your home on the MLS.

MLS Only Tip

MLS Only listings should have your name, number, and e-mail as the contact information (some MLS systems have different rules, but you should have at least your number). You should also be set up with a showing application that will help you receive and reject REALTORS who have clients to see your home. These showing applications are used only with licensed Realtor/agents.

There are many companies that offer this service which ranges between $199 and $499 for the basic service. Check out  www.RealEstateFlatRateListing.com and click on the coverage by state to help list in your area.

Social Media Marketing

Facebook, Instagram, Twitter, and many other platforms draw people to them every day for personal and professional reasons. They are good platforms to market your property and be seen by people you know and people you do not know.

Posting on your personal feed will get people to know you are selling, but it will take expanding your network to get your For Sale by Owner home noticed. To do this, you can boost an ad or create an ad. When you boost or create an ad, it will ask you where you want it seen. It will have you choose a city and how far out. Your ads will show up on the social media you are using for people who are registered within that distance. You can narrow down some demographics more, but usually a general radius is best.

Social media marketing allows you to set a daily or total budget for the ad. As you move up and down it will show you an estimated number of daily and total people you could reach.

Website Marketing

Making a website specific for the home is useful when it comes to showing people more than what they can find on the MLS, social media, and flyers. With a For Sale by Owner website, you can add as many pictures as you would like, videos, more descriptions, and it does not fall within the rules of the MLS.

You can get a domain from Godaddy or another web domain seller. These companies usually have easy to build website templates. Basically, they are drag and drop websites and very inexpensive.

You can also get help building one on our site here. We can make a website for you,  just provide the photos, video links and text for $249.

E-mail Blast Marketing

For Sale by Owners typically do not have the database of emails for real estate professionals and others who may be in the market for a home (if you do, then you are way ahead of the game).

You should still email your flyers out to family, friends and business associates and encourage them to pass it along. You never know.

Open House Marketing

As a Realtor myself I am torn as to whether an open house is worth the time and effort. Many real estate professionals use open houses to collect names, numbers and email of people who are buyers looking, but may not be interested in that specific home they are doing an open house for. Open Houses bring more curiosity from neighbors and window shoppers than actual buyers.

When your house first hits the market, it is not a bad idea to try marketing your property with an open house. If anything, you can ask for feedback from those who come on price and the home itself. Feedback itself can be valuable.

Mailers and Flyers Marketing

This can be an old school method in the world of digital marketing, but it can get the word out. By letting your neighbors know your home is for sale, you could run into someone who loves the neighborhood so much they would pass along the information to friends and family.

Flyers are also good to put up around town at places people gather. Please ask for permission before placing on bulletin boards and other public spaces. You do not want to spend money printing to have it thrown out.

For real estate professionals, e-mail blasts can sometimes be the biggest part of the budget.

Word of Mouth

Tell everyone you are selling! Word of mouth self-marketing is a tool that will always be useful. You never know who is looking to buy. From your dentist to your dog groomer to your hair stylist. They speak to people all day and are a wealth of information and connected to a whole different network of people. They can be your boots on the ground marketing team.

Joseph Walter Realty

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email: info@josephwalterrealty.com 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

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A Realtor is a powerful tool to use when you are selling (or buying) a home. For a For Sale by Owner, there is a hope there will be no need for a LISTING REALTOR. Saving the commission on one side of the deal by not having a listing realtor can be a significant savings (generally around 3% of the home sales price), but what happens when your home does not sell and sits on the market. When should you get a Realtor involved?

On the MLS, there is a counter called DAYS ON MARKET (DOM). This shows the other Realtors how long a home has been listed. The higher the number of Days of Market, the more likely the offers will not be what you were hoping for. A home sitting on the market is usually priced wrong, the condition of the home is not what buyers are looking for, or location is not where people are looking. Two of the three of these is curable, but which one is it?

As a home sits on the market, there are costs associated with it. These are the holding costs. The costs typically include – utilities, taxes, insurance, maintenance, and mortgage. They add up as time passes reducing your potential profit on the home. Since most mortgage payments go toward interest, you are paying out money, you will not get back. The same is true with all holding costs.

Many For Sale by Owners drop pricing thinking that is the solution. It could be but dropping the price without understanding the market may in fact hurt you. There could be another solution that could get you your price, so randomly dropping the price may not help get a buyer to make an offer. The real estate market is a funny beast. If you understand it, research it, it can be tamed and understood. It just takes the right person or company at times to assist.

We could go on and on about the different aspects of why your home is not selling, but the main question we need to answer is when you should get a Realtor involved. The best answer to this is – when the costs and time outweigh the savings on your home.

Typically you are told that Realtors charge 6% to sell your home (this is not always the fact, but it’s a on-average commission with 3% on each side of the deal – but the seller is always in charge of deciding the commission). The listing Realtor on a deal of $200,000 would be earning $6,000. This $6,000 would have been your savings if you would have sold it on your own. Let’s look at the costs for a home sitting on the market for 3 months:

                Holding Costs for 3 months:

  • Mortgage: $1400 x 3
  • Taxes: $300 x 3
  • Insurance: $100 x 3
  • Maintenance: $100 x 3
  • Utilities: $150 x 3
    • TOTAL: $6150

As you can see it would cost just over $6,000 to have your house sit on the market for three months without selling. This is 3% of your home cost already. Now after three months, you decide to get a Realtor involved. You will now be adding 3% of the Realtor cost, plus the holding costs for another 1 to 3 months (depending on when a purchase agreement is signed and closing happens – closings are usually 30 – 45 days after a purchase agreement is signed).

Your costs to sell the home are now 2 ½ to 3 times what it would have cost to have a Realtor involved, along with time you put in showing the house and maintaining the house while you were selling it For Sale by Owner. Time is valuable.

 This information is not to scare you into running out and hiring a Realtor from day 1. This information is to let you understand that you may need to get a Realtor involved to help sell your home and reduce the holding costs and time on the market. For many For Sale by Owners, mentally they are so against using a Realtor and pride takes over causing them to accumulate holding costs, make bad pricing decisions or put too much money back into the home they will not get out (updating home).

The main goal with or without a Realtor is to get your home sold either as a For Sale by Owner or with a Realtor. Both information and professionals are powerful tools.

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email at info@josephwalterrealty.com

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.