Why Professional Representation Matters: Sellers Edition
I know you've heard it before… "Why would I hire a REALTOR® and pay x% in commission? I can sell the house myself and save money." I bet that's exactly what the seller who listed their house at $19,000 under market value thought, too. Did I mention they accepted my clients' offer of an additional $5,000 under the list price and contributed $6,000 in concessions *for their closing costs* after only three days on the market?
I'm sure your next thought is, "Wouldn't the seller have just paid the additional $30,000 in commissions had they hired an agent? It would have been a loss either way." I can see how, at first glance, you might think so, but let's do some basic math, shall we?
For these math problems, we assume the FSBO* list price was $285,000, and the fair market value is $305,000. We will keep the contract terms the same, meaning an offer of $5,000 below asking was accepted, and the seller still paid $6,000 in concessions. In these scenarios, the commission is paid based on the purchase price amount.
FSBO [For Sale By Owner]
$280,000 Purchase Price
-$8400 (3% Buyer’s Agent* commission since the seller is representing themselves)
$271,600
-$6,000 Concessions
$265,600 Seller Profit
REALTOR®
$300,000 Purchase Price
-$18,000 Commissions (6% Total Buyer’s Agent & Seller’s Agent*)
$282,000
-$6,000 Concessions
$276,000 Seller Profit
This seller missed an ADDITIONAL $10,500 in profit by not hiring representation!
If an extra $10k in your pocket doesn't make you see the value in hiring a REALTOR®, then keep reading.
Aside from being pricing experts, we implement detailed marketing strategies to ensure a quick sale. Some REALTORS® handle this alone; I, on the other hand, have a marketing specialist on my team (but don't worry, I actually wrote this myself & she approved it.) 😉 No judgment, but what was your game plan? Posting the house on Zillow & FaceBook is boring and underrated, and we can do better. By leveraging our knowledge of SEO*, I can ensure that your property will have maximum exposure. It doesn't stop there; professional photography, videography, digital campaigns, and even direct mail… and yes, we hand stamp each piece.
Did you know two mandatory seller disclosures are required in North Carolina to sell property? No? It's okay; I didn't expect you to. :) Call me to find out how to access these forms. All jokes aside, that's not even the tip of the iceberg. REALTORS® work hand in hand with title companies/attorneys to ensure that all aspects of the transaction are appropriately documented. So many legal complications can arise throughout a transaction; part of our job is to help you understand those risks! Don't take on unnecessary liability without cause.
I could go on for days, months, weeks, and probably years about what a skilled REALTOR® can do for you, but I'll leave it at this… REALTORS® are professionals unlike any other. We are emotional support humans, pricing experts, marketing specialists, landscapers, home stagers, etc. Don't sell yourself short during a real estate transaction because you thought you could do it yourself; I agree that you'd be able to, but you won't be able to do it to the level and capacity that I do & that's just a fact of life. Allow me to leverage my knowledge, 10+ years of experience, and resources to help you navigate the complexities of this market; I am confident that you won't regret it by the end. Call me today to set up a free obligation consultation… JK, I'm a millennial; text me instead.
Toodles,
Rachel Love
Key Word Collection:
Concessions: Incentives or benefits the seller or buyer provides during a transaction to facilitate the deal.
Closing Costs: Fees and expenses incurred by both the buyer and the seller during the final stages of the sale.
FSBO: For sale by owner
Buyer's Agent: A real estate agent representing the buyer's interest in a real estate transaction.
Seller's Agent: A real estate agent representing the seller's interest in a real estate transaction.
SEO: Search Engine Optimization