Do you really save by selling on your own?
By Alexis A. Acacio, Contributor Philippine Daily Inquirer News Service
EACH one of would want to save money. If we can do something on our own, then why do we have to pay for services that we may never need? This thinking follows through when it comes to the real estate transaction. When one sells real property, there are always two paths to do it –
(1) sell on our own; and,
(2) sell it with the help of a professional that is through a real estate broker or salesman.
Selling on one's own can offer advantages:
You can save on commissions. Selling on your own can save you the commission that you may have to pay the real estate professional who will sell your property. This is why most house owners would want to sell on their own.
Certain situations also warrant that you can sell on your own:
It is your profession. You may be in the sales and marketing profession only that it is not real estate that you are currently selling. You may want to try your skill in selling real estate. Remember though that if you are used to selling medium-priced items in the range of a few hundred pesos, selling a five-million-peso property with a lot of legal paperwork is entirely a different ball game. If you are in the legal profession, then going through the process of documentation and paying the necessary taxes can be easy for you.
Your relatives or friends might buy the property. If you have a ready buyer who has been constantly telling you that should you decide to sell your property, they will buy it in a snap, then go ahead -- sell without an agent. In this situation, you already have a sure buyer.
If you think that you can sell your property on your own, ask yourself if you can handle these things:
Do you know where your buyers are? Selling real estate requires that you reach able, ready and willing buyers. Knowing where to find them is half the battle.
Real estate professionals work together as a team and have a network to share and to exchange listed properties. It is then made known within the network that a certain property is for sale at a certain location at a certain price. If you do sell on your own, you cannot possibly use this network without having an agreement with a broker.
Do you have the time? Selling your home will involve meeting the prospective buyer, showing them the house, answering questions and discussing financing possibilities. This can take a few hours and can easily take up the whole day especially if the property is located outside the metropolis. Showing the property means that you may have to take off from work and cancel some of your important appointments.
Do you know the market value of your property? If you price too high, many prospective buyers would not even consider making an offer and worse, your property may not sell at all. If you price too low, then of course the property will sell in a flash but you will have lost money.
Having a real estate professional on board will give you a proper appraisal of the property so that you neither would price it too high nor too low.
Do you know how to negotiate? Selling real estate involves a series of offers and counter offers until the buyers and sellers agree on the price and terms. This process can cause a lot of stress on those who are not used to negotiating.
Your real estate professional can negotiate in your behalf.
Do you know the legal aspects? Selling real estate involves legal documentation and transfer of title. The process involves going to the various government agencies, filling up the necessary forms, paying the required taxes and picking up documents that you would need for the next process. This requires knowledge and experience and involves a lot of your valuable time.
Real estate professionals are very familiar with the process and can perform the tasks for you in a breeze.
Do you know the process? Not knowing the process of selling real property especially the legal aspects can be a waste of your valuable time or much worse, can cause you legal problems. If you sell on your own, you would still need the advice of a real estate professional or a legal counsel that means that you will also spend money on professional fees.
Real estate research has shown that four out of five pieces of real estate property are sold through a real estate professional. If you think you can save money by selling on your own, just make sure that you are ready to face the risks of doing it on your own.