Home buyers and sellers tend to always blame their Realtor when things do not go as they had planned, but is your Realtor the problem? Buyers and sellers are quick to just jump to a different Realtor if they don’t see the results they want in a short amount of time but this is not always the best decision. Working with a Realtor is a two way street where each party needs to do their part. Sure there are all types of Realtors out there and not all Realtors are the same but you need to think about why you chose the Realtor you did and why the relationship is not working as you had planned.
If you are a buyer that is not finding the right property, think about what your Realtor has recommended and what you have put into the search. Have you been open and honest with your home search criteria? Have you made your schedule flexible so you can view properties when they come onto the market? If you have lost out on homes in multiple offer situations, but not followed your Realtor’s suggestions on making an offer? Your Realtor can only do so much to find homes for you and they cannot read your mind to know what you are looking for. It is up to the buyer to also put in a certain amount of effort and to accept some guidance.
Is your home on the market and not selling? Have you priced your home as your Realtor suggested based on comparable properties? Is your home staged correctly and kept neat and orderly. Are you allowing showings when buyers request them? Don’t forget to take your emotions out of the sale. Just because you love your home as it is does not mean the buyers see it the same way. Let your Realtor give you an objective opinion and seriously consider what they have to say.
Sometimes it is necessary to switch Realtors because let’s face it, not everyone “clicks”. But often buyers and sellers blame their Realtor for things that are actually their own fault. Before you move on to a new Realtor take a good thorough look at your situation and make sure that not only your Realtor, but you are also doing everything you can to buy or sell a home.
Is FSBO (For Sale By Owner) a good idea? Right now with sellers hearing about the shortage of homes on the market I have noticed a lot of FSBO signs going up but is this really the best way to sell your home? FSBO sales account for less than 10% of all home sales. About 40% of all FSBO sales are to friends or family members. Small towns have the most success with FSBO sales, while suburban areas have only about a 7% rate of success.
What are the advantages of FBSO? The main reason people try it is to save on the Realtor commission which is typically 6% of the sale price. The other reason is that you, the seller are in charge of showings, advertising and all marketing. These advantages sound nice but are they really advantages?
What are the disadvantages to selling your home FSBO? Most homes that actually sell do sell for about 16% less than homes sold through a real estate agent. People that typically by a FSBO are deal hunters looking for a really low price. Here you saved the 6% commission but you still lost 10% and that is not including your costs for marketing, etc. Over 80% of FSBO homes end up being listed with a Realtor eventually, but when the seller makes the switch they have lost months of valuable sale time. The majority of buyers are working with a Realtor and the majority of Realtors do not show FSBO homes because they end up doing the work for both parties for half the commission. You also need to know your contracts and selling a home is a legal process which means you may need to hire an attorney to help you out which costs you more money.
Selling a home on your own is always an option but before you decide to go that route make sure you do your research and make sure it will really be the best option for you in the long run. By listing with a Realtor you save yourself all the work of marketing, paperwork, negotiations, the closing, it makes everything much easier for the seller and in the end is well worth the commission.
*Statistics are from the National Association of Realtors
Take a look at the home buyer statistics for Minnesota vs. the Nation provided by the Minnesota Association of Realtors. Who are the buyers, what types of homes are they buying and where are they searching?
Characteristics of Minnesota Home Buyers
Wisconsin home sales continued to grow at a robust pace in November, extending a strong growth trend that started in July last year. Existing home sales rose 24.8 percent last month, compared to that same month in 2011, according to the most recent monthly report by the Wisconsin REALTORS® Association (WRA). Remember that I am also a licensed Realtor in Wisconsin and do help buyers and sellers in Western Wisconsin!