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The Pitfalls of Selling Your Home without a Realtor

For those individuals who use realtors to buy or sell a home, the transaction looks fairly seamless. It goes something like this:

• Buyers:
o Contact a realtor, who elicits from them what type of property they wish to purchase.
o The realtor shows them several properties, until they make an offer on one and it is accepted.
o They go with the realtor to the mortgage lender, that the realtor may have lined up for them and set the appointment. The buyers provide any information the lender needs and signs the appropriate paperwork.
o The buyers and realtor meet at the closing to sign all the papers, get the keys, and go to their new home.

• Sellers:
o Contact a realtor, who discuss with them their pricing preferences and timelines for the sale.
o Realtor does a walk-through of the property, suggesting things that should be done before listing the property.
o Sellers make the repairs or renovations.
o The realtor lists the property.
o The realtor, as well as other realtors, shows the property to potential buyers until an offer is made and accepted.
o Inspectors and appraisers show up, then leave to make their reports, and the realtor gives the results to the sellers and buyers’ agent.
o Once the realtor tells them everything is complete, the sellers move out before the closing.
o Sellers and realtor meet at the closing to sign all the papers, sellers and realtor receive their checks, and they hand over the keys to the property.

This is very simplistic; yet when a realtor is handling your buying or selling needs, this is pretty much how it appears.

Of the homes sold across the nation, 20 percent are sold by the owners, without a realtor. Surveys show that the primary reason is money; the sellers wish to save the cost of a realtor’s commission, which usually ranges between five and seven percent of the purchase price of the home. Unfortunately, many of these owners end up regretting their decisions, because it costs them that five-to-seven percent or more due to unexpected pitfalls in the sale.

First, there is a lot involved in the sale of a home. Realtors assist with the before-listing preparation; help you set a starting and deal-killer selling price (the price level you will not accept); setup and hold open houses; set up and coordinate all home inspections and appraisals; and set up and coordinate a real estate attorney and the closing. Realtors market your home to a broad base of interested buyers and other realtors, show your home or coordinate with you for other realtors to show it, negotiate offers, and close the sale. They even coordinate the timing of the sale, when you are buying other property that is dependent upon the sale of your home.

For buyers, realtors first help you to determine just how much you can afford to pay for a home — it is generally more than most people believe. They then weed through the myriad of homes that are on the market, matching potential homes to your purchase specifications. They arrange to show the homes to you, assisting in what to look for, what questions to ask, and after-showing discussions with you on possible problems or good points of the home. Realtors assist you in making an appropriate offer. They do all of the negotiations for you, representing your best interests — especially important when a seller has a professional representing them. Once your offer is accepted, the realtor may even suggest mortgage lenders and accompany you to your first meeting. Your realtor then works with the seller’s representative to ensure all inspections, appraisals, title searches, and permitting is properly completed, negotiating for you resolutions to any bad inspections. Again, working with the seller’s representative, the realtor coordinates a real estate attorney for you, as well as the closing.

Realtors know the right questions to ask — it is their job as professionals to keep abreast of the real estate market for their area. They handle any problems that arise, protect you as the buyer or seller, know what to avoid in real estate and during negotiations, and know what is/is not covered by the home warranty of the sale. They also ensure that all compliance and disclosure issues are dealt with properly, making sure that nothing is overlooked that could cause you a legal problem in the future.

Most importantly, a realtor maintains objectivity during an event that can be emotional for both buyers and sellers. Your realtor remains objective during negotiations, executing the best deal possible for you.

To avoid the pitfalls of selling or buying property, use a realtor, who may save you a lot of money in the long run.


About the Author: John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit www.twtrealestate.com




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