by Denise Brown
on Tuesday, December 26th, 2017 at 3:17pm.
In a hot market like Whistler is currently experiencing, many properties are selling only days after they are listed on the market.
So it’s understandable why some homeowners might think, “Huh – that looks easy.”
Private property sales – or “For Sale By Owner” (FSBO) – might seem like a simple way to save a few dollars on real estate commissions, but before you choose to go down this path, you need to understand what is at risk.
A private sale is not always easy, won’t always net you the most money, and may even expose you to potential liability. Read on to learn more.
More Exposure = More Money
The most common reason that people partake in private sales is to save money by avoiding commission. However, properties sold in a private sale often sell for less than what that property would yield if it was listed by a REALTOR®.
That’s because licensees are professional marketers: we market your property to get it in front of as many qualified prospective purchasers as possible, which helps your property sell at its top value. Maybe you know someone who is keen on purchasing your property – but they might not be willing to pay as much as another party would be.
FSBO sellers might do some marketing on their property – a sign on the lawn, perhaps – but odds are good that these efforts won’t reach the right audience, especially when you consider the fact that most Whistler home purchasers come from outside of Whistler. That’s where a licensee’s network and marketing reach comes into play.
The Value of Your Time
There’s a lot that goes on behind the scenes in a real estate transaction. Scheduling showings, ensuring paperwork is properly completed and submitted, negotiating terms and conditions, acquiring and reviewing the necessary strata documents (if applicable), coordinating with other service providers (lawyers, inspectors, appraisers), overseeing the subject removal period – these are all typical tasks involved with every property transaction and they can be very time consuming, especially if you aren’t experienced in the process. Expect the FSBO process to feel like a full-time job, and consider whether you have the time to spare to manage the process.
Paperwork, Paperwork, and More Paperwork
From the contract of purchase and sale to subject removal addendums, from property disclosure statements to the property title, there are a lot of legal documents involved in the sales process. Filling them out incorrectly could, at best, delay the sale, and at worst, land you in legal hot water.
Last Word: Understanding Commission
Despite the difficulty involved in a private sale, it is understandable that sellers might want to save their money by avoiding commission. This is particularly true if the seller does not understand the value in paying commission – in other words, if they view it more as a tax or mandatory fee, rather than paying in exchange for receiving a service.
I want my clients to understand what they are receiving when they pay a commission. If you are interested in what it is, exactly, that you are paying for, please contact me – I’d love to tell you about how my customized marketing plans and years of experience will help you realize your property’s highest potential. My goal is for you to understand the value of my services so that you understand how paying a commission can net you more in the long run. I promise to be completely transparent with you so that you can make an informed decision in how you want to sell your property.