The holidays are here and you realize; you need more or less space? Better outdoor living? A first-floor master bed? Or maybe you just want to take advantage of a hot market and low-interest rates? Whatever the reason, you realize you have nothing to lose if you try to sell now in this great sellers market.
We have unprecedented low inventory, so you think you can just sell it yourself and don’t need a real estate professional; you can just save that commission cost, right? Well, let me explain why you might be stepping over a dollar to make a dime.
Here is a story of what my team and I just did for a client who read a recent Portfolio Insights and decided to give the market a try, even though they were not thinking of selling.
I had sold this couple a condo for $199,000 several years ago. It was totally depreciated, I like to say. If the home’s mechanicals and aesthetic components are over 27.5 years old then it is totally depreciated by government standards and needs a total reno to bring it up to 2020. (This is the period of time that the government lets one depreciate a residential rental home on their taxes.) The couple invested $75,000 in their condo updates and got professional advice on selections and decorating. When they had me out to see it I knew it was a showstopper now and would sell quickly in this market.
So I priced it for them based on comps which is the usual way homes are appraised. Then I said there is the number you might be able to get if we apply some of our new strategies to your listing for this high demand/low inventory market. So we went for it and listed it for $379,900 turnkey. With our unmatched Sotheby’s marketing, we had 13 showings by Monday and received 4 offers. The property went pending over the asking price on Monday in a cash deal that closed in 2 weeks for $396,000. But effectively they sold for $403,920 after the discounts they received in commissions. They only had to pay 3% vs our usual 6-7% we charge to list and sell real estate.
I asked the couple if they thought they could have done this themselves and this is what they said:
Dear Lynn, I have done seven real estate deals. The first two I did myself. The next five I hired a realtor. The last three we’re done by you. Your services and expertise were heads and tails above the other two realtors that we used previously. You understand market conditions. You know buyers and sellers. You know multiple deals strategies. You have a variety of marketing strategies. You act as a buffer between the buyer and the seller. You know how to negotiate deals. You know how to close the deal. You know how to address difficult negotiating or property issues that arise, especially the ones that are unexpected. You have access to buyers in many real estate markets which benefits the seller in their existing market, especially the lake markets. You schedule showings instead of the seller. You show the property instead of the seller. Therefore you save the seller a lot of time. You have clearly differentiated yourself in a good way compared to other realtors or we would not have worked with you for the last three transactions. We are very happy how all three turned out!
Are they happy they did this?
The moral of the story? Don’t go it alone. Not only do you probably not have the expertise, experience, or precious TIME to do this yourself any more than you can fill your own cavities but you could leave a lot of profit on the table, and run into issues with the necessary paperwork, possession, inspection, appraisal, and title causing you great stress and maybe more money. Call on a veteran real estate pro with an exceptional team to navigate these numerous steps alongside you for a successful real estate transaction.
And I know just the one to call!