SELLING PRIVATELY

 

IS IT REALLY A BROKERAGE?

In the last few years, there has been a number of advertising companies popping up that offer to advertise your home for a very low rate. Your first question should be, “Are you really a brokerage? If they have access to the MLS site, then the answer is yes. If they do not, they are merely an advertising company. Only licensed brokerages can promote their listing through the MLS on REALTOR.ca®. These non-MLS advertising sites take your money, with no guarantee of a sale.

 

 

If things don’t go as planned with one of these sites, you may end up selling for significantly less, lose the best selling season, end up having to carry two homes or carry the mortgage on your current home much longer than anticipated, and having your home appear stale because it’s been available for so long. They will NOT tell you that the vast majority of their sales happen with buyers bringing in their own agent to protect THEIR interests. When this happens, SOMEONE pays the commission. If you tell the buyer that he is responsible for his agent's commission, don’t think the buyer is still going to give you top-end dollar. He will be reducing his offer to accommodate the amount he has to pay his agent. And remember, the buyers’ agent will do whatever they can to protect the buyer throughout the deal. Not you. Most of these companies now tell sellers to set an amount that they might be willing to offer to a buyers’ agent. So….now you are dealing with buyers, making sure you are offering up all info required to close a deal (you hope), paying a lawyer to write up your offer, skipping work for showing your home, and paying the buyers’ agent.  Not to mention that you paid these companies FIRST for the privilege of selling your own home. Where, exactly, in all of this are you saving money? And if you look at their statisticss, you’ll see that most of these companies are not successful in the sale of you home. Why? They are advertisers. Not real estate agents.

 

AN ESTIMATE

A study of the “For Sale by Owner” market over the past six months showed interesting results: *

 

 

-       20% of the people that use the “For Sale by Owner” companies are successful in selling (often with the help of a buying agent)

-       20% list with a real estate agent

-       60% give up

 

 

JUST KEEP YOUR MOUTH SHUT! (OR SHOULD YOU?)

There are two types of defect in a home, patent and latent. Patent defect are obvious. You don't need any special equipment or licenses to see them. These include things like a crack in the ceiling, cracked foundation, an exposed  leaky pipe. broken windows, etc. In law, you are not required to point out most patent defects. Buyers can see this with little to no effort.

                  

 

 

Then there are latent defects. These are the far more sinister ones. These are defects that CANNOT be readily seen. These defects need to be disclosed to the buyer, like it or not. Things like a broken underground pipe going out to the sewer. The presence of galvanived plumbing that is hidden inside the walls, hidden knob and tube wiring, A major crack in a foundation that has been covered up with new drywall, and so much more.

 

 

The Freis Guys can help you through the minefield of these things. Ad companies don't know, and many don't care. We will help you disclose this issues in the best possible light. NOT disclosing could find yourself sitting in court, delaying the close of your sale, having you pay for the damages, or cancelling your sale altogether. This can cause you serious problems on your next home purchase!

 

 

* Stats from keithmarshall.ca, March 2017

 

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