The real estate market in the Waterloo Region is still on fire! 🔥 This has many potential sellers asking themselves if listing their home with a real estate agent is necessary or not, especially when homes are selling so quickly.
While “For Sale By Owner” (FSBO) is still an option for any seller in 2022, it comes with its own set of risks and downsides that even in a hot market will often not result in the home selling experience you are hoping for.
Just what can a real estate agent offer that will get you that great price and quick sale you would expect in a market where homes seem to be snapped up almost as soon as the for-sale sign has gone up? Here is a look.
Larger Networks Mean More Exposure
When it comes to an FSBO - for sale by owner - transaction, marketing your home can seem as simple as utilizing your circle of contacts and/or listing your home yourself using a plethora of online listing services such as Zillow Canada, Zoocasa or Point2. However, it's important to keep in mind that these resources are limited.
While using your personal or professional network to sell your home is always an option, there is a good probability that this network will have little interest in spreading the news about your property being up for sale. It can result in a smaller pool of potential buyers viewing your house, leading to a longer home listing period or perhaps a lower sale price.
To improve future closing transactions, a real estate agent's job entails nurturing and expanding prior clients, databases, and other agent and real estate agency contacts. A successful agent will be able to notify this large list of contacts at any time and generate interest in your newly listed home. Email marketing, social media marketing, the usage of a real estate professional's website, and good old-fashioned word of mouth are all methods agents use every day to do this.
Another important factor is a licensed agent's or broker's access to the Multiple Listing Service (MLS). Other agents who represent local buyers will heavily rely on the MLS to inform their clients about exciting new listings. Frequently, a new list of properties with similar qualities to yours will be compiled by real estate agents across every brokerage in the area and provided to any buyer looking for a home like yours.
Another thing real estate agents have over those online listing services is access to information about properties that have yet to be formally offered for sale but will be available soon. In a hot market, this information can prove invaluable to would-be homebuyers and a savvy agent may be able to line up eager bidders from day one that your property is officially listed for sale.
Using a combination of these resources, your home is constantly receiving the exposure it deserves, ultimately providing a smooth and rewarding sales experience.
The Emotional Side of Selling a Home
It's easy to get emotionally invested when selling your property. If you love your home and have invested a lot of time and effort into it, you may find it quite difficult to let it go. A real estate agent can assist you with this process by providing you with unbiased professional advice and knowledge. Your judgment may be influenced by your emotions if you don't have an agent on your side.
You can be insulted by a lower-than-expected offer or sensitive to what others have to say about your property during the showing process, for example. An agent can deal with any offer by making a fair counteroffer to the buyer's agent or by refocusing emphasis on the positive aspects of your home.
Real estate brokers will be able to interact with potential purchasers far more objectively than you could on your own. Agents have a lot of experience selling properties, so they know how to interact with buyers effectively by using the right terminology and maintaining a neutral tone.
Negotiation Skills
Even if you have sales experience, which most Waterloo Region home sellers do not, you probably don’t have the same specialized experience negotiating the sale of a home. This could lower your chances of succeeding in the negotiation, meaning less money in your pocket.
When listing your home, you want to sell it for as much as possible, and you may think dispensing with the extra agent commission will help you accomplish just that. On the contrary, FSBO usually sell, according to a number of independent statistics, for an average of 30% less than comparable homes sold by an agent, and stay on the market longer too, even in a hot market.
An experienced agent may have negotiated hundreds of home sales, giving them the upper hand in identifying warning signs of bids that might not be quite as simple as they seem, or in handling a number of bids submitted at once and managing them all effectively.
Sellers who sell their home FSBO are also often not familiar with their area's local procedures or market conditions. An experienced real estate agent knows the pulse of the market, which gives them the leverage of knowing which terms are worth negotiating for and which aren't.
Home Selling Paperwork
Don’t underestimate the amount of paperwork and 'legal stuff' that goes into selling a home. Your real estate agent knows the ins and outs of the transaction, so while they can help you take the emotions out of selling your home and ensure it’s marketed properly, they’re also going to help you avoid future legal risks.
One of the biggest examples of this is disclosures and whether or not they’re done properly. Without the proper documentation, you open yourself up to risk that an experienced agent would avoid. For example, do you need to tell the buyers about pests or leaks in the roof? What about if there was a death on the property? While you may not be 100% sure, your agent will be able to help you through.
Real Estate Is A Full-Time Job
Of course, there are exceptions to every rule but generally speaking, most listing agents work in real estate full-time - and by full-time, we mean 24/7, 365 days. That’s right. Agents often work atypical hours, including nights, weekends, and holidays. But while great agents are busy providing their clients with full-time value, chances are you, or someone in your household also has a full-time job.
At first, you may feel like you can handle the showings on your own, but realistically you can’t rush home from work every time someone wants to see your home. You can’t take every midday phone call inquiring about your home because you have your own job-related responsibilities to tend to. You probably won’t have the time or the knowledge to properly market your home reaching buyers where their attention is today.
The good news? A full-time agent takes care of all of those tasks and more! They say being a jack of all trades means you’re a master of none, which is true in this situation. A great real estate agent knows the industry inside and out, and their sole focus is on you and your home.
Most households have a lot on their plate. Why would you want to add learning real estate to your plate when you can lean on a seasoned professional to take care of virtually everything for you with minimal stress involved? Even if you’re still convinced you can sell your home on your own, the calls and showings are only the beginning of the process. It only gets more complex from there as you move into negotiations, appraisals, and stacks of paperwork.
