So, did you think you actually saved 5% by using the “do it yourself real estate companies”? Think again. Let’s look back at 2016. The local market, depending on your city, was up an average of 15 to 18%. Realtors have the knowledge and research to show you the comparable and educate prospective buyers and sellers on recent sales and trends!.
Now let’s factor in the “multiple offers” element of a transaction. When listing with an agent, and having an effective marketing strategy, you increase your chances of getting a “bidding war” started. The “DIY” guys just can’t create that kind of environment. Even some Realtors who have years of experience often fumble in this multiple offers / negotiating process — so you can just imagine trying to do it yourself.
Don’t get me wrong though, I love properties that are for sale and are listed by their homeowners, as I know I’ll have no competition. This saves my Buyers thousands of dollars! However, the Sellers always loses those thousands!
On average, just being able to get multiple offers will get 5 to 8% above the asking price.
Another thing to note, when you sell on your own, the buyer expects you to discount the price of the property as you are saving the commission. So lets say you drop the price by 3% to be fair, now factor the fees your paid the DIY companies, the time, the aggravation and oh yes — the marketing (if there’s any – paid by you).
When all of the above is calculated, you are losing on approximately 10%! What did you save? You saved yourself from having to worry about what to do with the extra cash.
Have any questions about DIY companies or commissions? Call me anytime at 519-624-5555 or e-mail firstname.lastname@example.org