Why Should You Use A Real Estate Professional To Sell Your Home Now
It is tempting to forgo the services of a real estate professional when you are selling your home in a hot real estate market. Although we are still in a favorable market, the increasing interest rates will lower the buying pool.
As interest rates increase, buyers who were on the margins of qualifying for a higher mortgage may now have to lower the price range of the home they are looking to purchase. This may reduce the pool of buyers in any given price range.
Along with the higher interest rates, increased inflation can reduce the amount of cash a buyer is willing to invest in their new home. This will begin to decrease the amount of competition for homes.
A real estate professional has the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a For Sale By Owner or FSBO, is decreasing.
Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:
1. They Know The Buyer’s Hot Buttons
Before deciding which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what the buyer expects, and what you need to do to ensure your house shows well.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. Previously, I discussed the possibility of over-improving your home in this blog post. In today’s low-inventory market, buyers are willing to take on more renovation work themselves. A survey from Freddie Mac finds that:
“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.”
In the hot real estate market we have been experiencing, the home inspection process has been less contentious than before the market fired up.
Familiarity with staging techniques to make your home more appealing to buyers is a strength of most real estate professionals. They tour a lot of houses and know what makes a buyer light up.
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house, price range, and area.
2. They Help Maximize The Number Of Buyers Who Tour Your Home
Recently, the average home has been getting 4.8 offers per sale, according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s essential to understand your agent’s role in bringing buyers to your home.
Real estate professionals have various tools at their disposal, such as social media followers, agency resources, and the MLS, to ensure that most qualifying buyers view your house. According to realtor.com:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
The real estate community is well-connected. Real estate professionals network with other real estate professionals sharing information on upcoming homes for sale and the buyers they represent. As a result, a well-connected real estate agent may share information about your home before the house is available to the public with real estate professionals who have buyers interested in homes like yours.
Without access to these tools and networks, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They Understand The Legal Requirements
Today, more disclosures and regulations are mandatory when selling a house, whether you are using a real estate agent or doing it yourself. Unfortunately, the number of legal documents you’ll need to understand and utilize is increasing. That’s why Investopedia says:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
There are many timelines to meet after a contract is signed in that fine print! Your real estate professional will make sure everyone meets their deadlines to keep the agreement moving forward, prevent any loopholes for the buyer, and that your home will close on time.
4. Real Estate Professionals Are Trained Negotiators
If you sell without a real estate professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
- The buyer – who wants the best deal possible.
- The buyer’s agent – who will use their expertise to advocate for the buyer.
- The inspection company – that works for the buyer and will almost always find concerns with the house.
- The appraiser – who assesses the property’s value to protect the lender.
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
There may be issues that arise during the sale of a home. An experienced real estate professional knows how to put out fires that may otherwise kill the deal.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may overshoot your asking price. That means you’ll leave money on the table because you priced it too low, or your house will sit on the market because you priced it too high. Pricing a home requires expertise.
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are crucial to making sure your home is appropriately priced to move quickly while getting you the highest possible final sale price.
An experienced real estate professional knows how to price ahead of the market. This means that the price should not necessarily reflect what is happening today but what will happen in the next few weeks or months ahead. For example, if the buyer pool begins to shrink due to increased interest rates, the competition will not be the same as a few months ago. With fewer buyers in the market, sales prices may begin to stabilize. Pricing your home too high is a risk. Traditionally, an overpriced house sells for less than if priced correctly.
For Sale By Owner homes typically sell for 14% less than similar homes listed by real estate professionals. Paying a real estate commission would still yield a for sale by owner more profit than going it alone.
Bottom Line
There’s a lot that goes into selling your house. So instead of tackling it alone, reach out to a trusted real estate professional to make sure you have an expert on your side throughout the entire process.
Contact me, Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. I can help buyers and sellers achieve their real estate goals. Reach me by phone at (718) 253-9500 ext. 1901 or email at [email protected]
