Why For Sale By Owner Properties Need An Agent
You may have noticed some signs starting to pop up in yards this spring; they are red and white with a hand written phone number, usually hard to read, written on each side. That’s right, those for sale by owner signs really hit the market come spring and summer because sellers know it is the best time of the year to put their home on the market and they also believe they can do it without the help of an experienced agent.
Now, I can understand why sellers would want to try and sell their properties by themselves, the main reason being they don’t have to pay commissions out to an agent, meaning they would save money right? Well I hate to tell sellers this but research shows that houses sold by their owner often sell for 5.5% less them comparable properties sold with an agent posted in the MLS. Agents bring a lot to the table, a lot of behind-the-scenes work that many sellers have no idea about and that is why it is imperative to hire a good realtor to represent you when putting your home on the market.
Here are a few reasons you should hire a realtor instead of attempting to sell your property yourself:
Time – We all understand that time is the most valuable thing you possess and realtors know that better then anyone. If a seller say is out of town for a week and an out of town buyer wants to put an offer on the house but only has a day to do so, how would a seller handle that without help? Realtors have teams and co-agents for a reason. They also respond to emails and phone calls in a timely manner.
Knowledge – Realtors went to school for a reason, to possess every piece of knowledge they could about real estate. Most sellers don’t know the depths of the laws and contracts that could land them in some hot water.
Marketing – Realtors have a budget for marketing their clients homes, do sellers want to pay a large amount of money to have fliers, signs, etc. made? Probably not, but an experienced realtor will have that put in place the minute they represent the seller.
Presentation – Many sellers think their home is “showing worthy” but 80% of the time, there are changes that need to be made and updates before a house is market ready, realtors are the people to help see those changes and make recommendations.
Negotiations and transactions – Negotiating is a lot of a realtor’s jobs, many of us have been trained to handle every type of situation thrown at us. Sellers have no idea the behind-the-scenes talks that go on between a selling agent and buying agent. Without the experience of this and the understanding of the contracts and keeping them in order, a seller could easily lose a deal.
Inspection and getting to closing – The inspection might be the most stressful part of any real estate deal; it can make or break the deal and leaves both the sellers and buyers on edge. Is the seller prepared to fix whatever the buyer asks for? Does the seller have a highly-skilled team of handymen etc. to make corrections? Most sellers do not have the connections to do this while realtors have a black book full of help for any type of problem. Then, handling closing. It is more then just a few signatures and a realtor can guide a seller through the process making it a smooth transaction.
If you are thinking of selling your house by yourself this year, I highly recommend giving it a second thought and to sit down with an experienced realtor like myself to see what I can offer to help you get the best price for your home and make it as easy a transaction as possible!
Why using an agent with a good track record is imperative
If I asked you how many real estate agents you knew at this moment, my guess is you could name a dozen or so of your family and friends who are in the business. It’s no secret that there are copious amounts of real estate agents in Denver and the surrounding areas. Currently, the city has around 22,000 real estate agents, not all of them active but plenty to choose from. Of these agents, Scott Grossman (Past Chairman Of The Board at Denver Metro Association of Realtors) says that probably around 15% of the licensees out there are driving 80%-90% of the business. These are the agents who have their systems down and know how to drive their business for success in an extensive market. So of the agents out there, around 3,000 agents are doing most of the business. That might seem like a large number, but in a market where inventory is at an all time low, you are going to want to make sure to have one of the best agents on your side when making a deal.
Even in our seller’s market, it is important to make sure you have a Realtor who understands the ins and outs of the selling process. If you are looking to use an agent who is newer to the field, make sure they have either a good mentor, employing ber, or team that will help them navigate the real estate waters. I’ve had clients who come to me even though they have a relative who is a Realtor or a friend who is a Realtor and they come to me for many reasons. They come to me because of my success rate, because of my dedication to each one of my clients, because I have a team who also ensures every transaction is smooth from start to finish and at the end of the day, my honesty, my integrity and my ethics are some important things my clients are looking for to represent them best.
Pulling numbers from DMAR (Denver Metro Association of Realtors) shows that the most recent numbers as of April 11th, 2018 for the number of active listings is only 554 homes – down from 879 homes last year. Denver is experiencing an all-time low when it comes to our inventory and for that reason alone, you should be very picky about who you hire to be your real estate agent. I have worked with clients and heard stories from other buyers and sellers that they had bad experiences with agents in the past and some of these agents caused them to lose a deal or a home. Unfortunately, I explain that many times, realtors get into this line of work for the money alone and when it comes to being an advocate for their clients, many agents fall short. It is a very important thing for me to build trusting relationships with each and every one of my clients and let them know that I will be with them every step of the way from the day we decide to work together until we get to the closing table (and beyond).
I am grateful for every one of my clients, they are my motivation to be the best Realtor I can be. If you are thinking about getting into Denver’s competitive market, I would love the chance to represent you. Contact me today and let’s chat about how I can help you achieve your real estate hopes and dreams
April 2018 Market Stats
A fourth of the year done, how are your yearly goals going?
It seems like 2018 just started a day ago but here we are into mid-April and we are already a quarter of the way through the year! I know at the start of the year I sat down and wrote down a list of my goals for the year. I actively work on them daily and try to remember that it is not a sprint but a marathon, I do not need to get everything done in the first few months but also not to leave everything until it is about to be another new year.
A few proud accomplishments for me so far:
- I have been doing my best to read the Bible every day. I have an app called YouVersion that keeps track of my reading and I find it helpful to show myself how well I am doing and it encourages me to keep it up.
- We were just about to pay off $58,000 in business debt, which is always a huge sigh of relief. Money issues appear to be a big thing for many people these days and being able to sit down and come up with a good business plan for the year is imperative to getting yourself out of debt and into a good financial space.
So how are all your goals going? Are you happy where you are today with your professional life and your personal life? As we come out of the winter season, many people find themselves in that winter lull still, figuring out how to take on the spring and summer. I know during the warm months too it can be hard to stick to goals when the weather is always nice and there is so much more going on in the city. I have a few recommendations for keeping on track with your goals when the rest of the world gets a bit more distracting –
- Keep a running list – it has been proven time and again that writing things down, not on a computer or text but the actual physical act of writing it down helps the mind keep it in check. Whether you have a journal, notepad or even a white board, make sure to write down your goals and feels good when you can cross them off as finished or when you get to add new ones!
- Words of affirmation – I like to start my day by writing words of affirmation. This is a taught practice with a lot of realtors to get them to start their fay focused and ready to go. I like to write down what I am thankful for that day, what I hope to accomplish that day, who I appreciate and my business goals. Try it sometime; it really is a great way to start the day.
- Make designated down time/personal time – as a realtor, the spring is my busiest time of the year, which means I consistently work a seven-day workweek. While it is great for business, I find it is imperative that I make time for my family, my friends, my church and my other businesses. I like to look at my week on Sunday evening and plan out times where I can take some time for just me because I know that is crucial to me being a good mom, wife, friend and realtor.
You’ve still got plenty of months ahead of you but there’s no time like the present to start checking those goals off your list!