SELLING YOUR HOME WITHOUT A REAL ESTATE AGENT

SELLING YOUR HOME WITHOUT A REAL ESTATE AGENT
by Roger V. McCaffrey-Boss
Copyright by gay Chicago Magazine and Roger V. McCaffrey-Boss
April 9-15, 2009
http://www.gaychicagomagazine.com/advice/legallyspeaking.shtml


With the depressed real estate market we are now facing, some sellers are questioning the need for the services of a real estate agent. Dropping sales prices and high mortgage payoffs leave home sellers wondering where they can cut expenses to make the sale happen.
Discount internet brokers and for sale by owner companies are promoting their services to an eager and willing market. And legitimate realtors faced with this strong competition and declining sales are struggling to pay office expenses and advertising budgets. It’s bad for everyone, except buyers who are willing to jump into unknown territory.

For 30 years, I have always believed the expense of a sales commission was justified by the benefit a realtor provided to the seller even though the cost may have seemed high at the time. I still believe that, but I would never argue that a house seller should pay a six percent sales commission. Those days are gone.

When my partner and I sold our Oak Park two-flat last year, we faced the same dilemma - the desire to save money and yet have the help of a realtor. What we did was to use a company that provides a MLS listing, photos, house tour and internet advertising that we would pay a 2.5 percent sales commission to another realtor that brought a qualified buyer. We advertised our open houses, placed newspaper ads, hired house stagers, and fielded calls from buyers and other realtors. And then we sat for 10 months with only one low ball offer.

I don’t attribute the lack of a steady stream of buyers to the listing company as we got full internet exposure with photos and a house tour that was fantastic. I attribute the slow sale to the uniqueness of the property – a very limited appeal to most buyers – and a horrible selling market that continues to this day.

We eventually received an offer from a buyer who saw our house during an open house in the summer and signed a contract the following February, ten months after we listed our two flat. Our buyer was working with a realtor and would only present an offer through their broker. That offer required us as sellers to pay a $20,000 sales commission or 3% of the sales price. Even though it seemed steep, the cost was well worth it because the realtor had something we needed – a qualified buyer who wanted to buy our real estate. And we saved two percent of the sales price if the commission had been the standard five percent.

The day is gone of sellers putting an advertisement in the Sunday real estate section of the local paper, staying home on weekends and acting as tour guide and salesperson and making a quick sale. Now properties can sit and sit with realtors wondering how they can make their advertising expense in newsprint.

Using the services of a real estate agent can offer some real advantages:

• Overpricing: Many sellers overestimate the value of their homes resulting in a very hard time for the owner in selling the house. Real estate agents can offer guidance in setting the selling price of the property based on market value from sales of similar properties in the area. Remember your house is only worth what someone is willing to pay for it.

• Screening: When a seller places an ad in the paper to sell their property, the ad attracts not only genuine prospective buyers but also browsers and curious neighbors looking for a free tour. A real estate agent will be able to distinguish between the looker and the serious buyer.

• Helpful advice: Real estate agents can suggest ways to make the dwelling more saleable - painting a room, removing debris, cleaning an offensive odor not noticeable to a seller etc. Agents can suggest how to best describe the features, details and highlights of a house. And they can suggest staging, well worth the expense.