Los Gatos Weekly-Times
Homes
The Real Deal
In sales, don't try to do it yourself
As the housing market makes the transition to a more normal and balanced state than in previous years, homes may become harder to sell. It is during these times that advice from a real estate professional becomes even more valuable.
"After five years of outstanding growth, the housing market is undergoing a period of adjustment and becoming more and more of a balanced market between buyers and sellers," said Thomas M. Stevens, president of the National Association of Realtors. "It's even more important now to work with a professional who can guide you through current changes and the negotiation process."
Do-it-yourself homeowners want to save money and often enjoy the satisfaction of a job well done. However, there's a big difference between the skills involved in fixing your home versus what is necessary to sell it.
"Do-it-yourself home selling saves you neither money nor time. Many people who sell their homes on their own make less money than those who rely on the skills and expertise of a real estate professional," said John Tripp, president of the Silicon Valley Association of Realtors.
Research by the National Association of Realtors indicates the median for-sale-by-owner selling price generated 13.8 percent less than the median selling price of homes marketed by real estate professionals. In 2005, the median sales price of a home sold by an unrepresented seller was $198,200, compared with a sales price of $230,000 for sellers who are represented by a real estate professional.
Most sellers are not experts in the time-consuming and sometimes labor-intensive marketing strategies necessary to expose their home to a wide audience and attract potential buyers.
Realtors have access to the Multiple Listing Service, other marketing tools such as Realtor.com, and in many cases their own website.
If you go it alone to sell your house, your buyer likely won't be working solo, putting you at a further disadvantage. According to the 2005 National Association of Realtors Profile of Home Buyers and Sellers, 77 percent of recent homebuyers used a real estate professional to purchase their home.
These buyers have someone to help them screen homes and ensure their rights are being protected.
Recent unrepresented sellers reported the most difficult tasks to undertake are preparing the home for sale and getting the price right.
If you don't have a Realtor on your side, you won't have a sounding board to help you decide whether to update your house in preparation for the sale or to help strategize about the best asking price. In addition, a Realtor can show a home more objectively than an owner can and has the experience necessary to prequalify potential buyers.
"Not every buyer who walks through your door will qualify for a mortgage or is motivated to see the process through to settlement. That can waste your valuable time," said Tripp, who is with Foundation Trust in San Jose.
Selling a home is a complex transaction. A Realtor will ensure the proper paperwork and various disclosures and inspections are handled correctly and in a timely fashion.
Negotiating terms on behalf of the client is a skill Realtors practice continuously to help their clients get the best deal.
Without the experience and training in negotiation, an unrepresented seller might let problems take the sale off track over a minor issue, or let a buyer with representation take advantage of the situation.
Many aspects of the sale can be risky for a novice and are better not left to chance by the unrepresented seller. As the saying goes, "You get what you pay for."
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to rmeily@silvar.org.
