You have put down roots, made great memories, have friends close by, but now you have to sell. The costs associated with selling are not small by any measure – moving costs, lawyer or notary fees, transfer taxes (on your new purchase), and real estate agent fees quickly add up.
Real estate agent fees are one of the greatest costs, but despite this, not a lot of people (less than 5%) try to sell their property themselves. Most people decide to use a real estate agent to sell their home for the same reasons they use a mechanic to fix their automobile or a lawyer to deal with a legal matter. It is possible to sell your property yourself, but what you save in commission you could lose in sale price and there’s a chance you can expose yourself to legal issues.
As you know, real estate agents provide the following services:
- answer questions;
- prepare listing documents;
- Sell your property
- keep you at arms length from potential buyers so that you can maintain your privacy and not get emotionally involved with a potential buyer;
- offer insight on current market conditions and provide real estate advice when needed;
- help your property standout;
- limit your liability;
- Give advice on how to negotiate a good price for your property;
Based on my experience, generally speaking, this is the order of importances most people have when deciding who to use as a real estate agent or brokerage and why most people just rely on a referral from a friend or number of listings agent has to sell their property.
The real estate industry is big business. For example, in Kamloops with a population of about 95,000 on average there is about $75 million of transactions per month in our real estate market. Collectively, real estate agents are trying to make that number as big as possible. Real estate agents are like the managers of the real estate industry and for their services they charge Sellers a commission usually of no more than 4%. In return, Sellers hopefully get a good management team that consistently makes their wealth improve by more than 5% to offset this cost. I say management team because when you hire one agent you are indirectly hiring all agents. In theory, your listing agent is trying to help you achieve the highest sale price while a buyer agent is trying to help buyers achieve a lower sale price.
When choosing a real estate agent, Sellers should look for good management skills and an entrepreneurial spirit. Good managers not only have good people skills, work hard, and are honest, but they also look for ways to make things more informative and transparent. Good entrepreneurs always have the energy to try to become more efficient and effective. When you are seeking a real estate agent keep these managerial skills in mind because they should be at the heart of any good real estate agent’s business. One way to show entrepreneurial spirit is to be proactive in marketing a home with high quality pictures, and even videos that give your property a story so that there is a great first impression of the property.
Obviously selling your home doesn’t suck. But chances are you would not have read this article if I called it, “Sell your property with me for top dollar quickly!”.
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