Three Reasons Why Home Sellers Hire A Realtor.
Reason #1: We can sell homes for more money.
In fact, most sellers net more money in their pocket, even after they pay the agent’s commission. The typical home sold by an agent sells for $230,000, while the typical For-Sale-by-Owner home sells for $184,000.
That doesn’t mean that every agent is going to sell your home for more money. But, the numbers do show that agents do sell homes for more.
Reason #2: The whole process is easier when you hire a Realtor.
Let me give you a concrete example. I talked to a Title Company Manager who handles For-Sale-by-Owner Closings and Realtor Closings.
He told me that when a For-Sale-by-Owner sells their home it takes about 45 days for the two parties to sign off on the sale contract.
He said that sometimes they don’t even sign it until they sit down for the closing. When a property is sold by a Realtor, the sale contract is usually signed in 45 hours.
Why does this matter to you?
Have you ever heard of “Buyer’s Remorse?” It’s where a buyer makes a decision to buy your home, and then as soon as they have made that decision, they immediately begin to question the decision.
It doesn’t matter if the decision was good or bad. I’ve seen buyers get buyer’s remorse when they were stealing homes. They still question it. And, sometimes they freak out and change their mind.
If you have a signed contract, then you can hold their feet to the fire. If not, then they walk and you have to sell your house all over again.
Now, this isn’t to say that you can’t sell your house yourself.
You probably can. But, unless you have sold a lot of homes yourself, then you probably aren’t set up as well as a professional Realtor is. Does that make sense?
Now, I know that many Realtors are not as good at other things.
For example, I know a lot of Realtors that are not good at working with their hands. Some of us couldn’t fix a lawn mower if our life depended on it. Don’t hire us to fix your lawn mower. Hire us to sell your house. Make sense?
Reason #3: A good Realtor can save you 80-100 hours of your time.
That is because we handle all of the work for you. We are experts at financing, loan conditions, home inspections, surveys, title work, termite inspections, appraisals, negotiating, etc. Some people have estimated that there are 189-213 different things that an agent does to sell a home.
That list is shorter or longer, depending on the property. I haven’t familiarized myself with every item on that list. But, I do know from personal experience that selling a home does take a lot of time.
Reason #4: We solve problems.
That is the most important thing a Realtor can do. After all, it’s one thing to have a buyer that wants to buy your house. But, just because they decide at that moment to buy a house doesn’t mean they will.
Here is a story that illustrates this perfectly.
A seller put her home on the market. The perfect buyer came along and made a full price offer for the home. The seller and the buyer signed a contract and the buyer started working on financing. The buyer ran into a problem with the financing and cancelled the contract.
Later on the seller told the story to an agent. It turns out that the problem the buyer had was completely solvable. But, the seller didn’t know how to solve it. As a result the buyer couldn’t obtain financing to buy the home.
The agent is confident that if they had been involved in the sale, then they buyer WOULD have obtained financing and bought the home.
Unfortunately, the seller had to put the home back on the market. It took another 5 months to sell. The seller had to pay an additional 5 months worth of mortgage payments, property tax payments, and homeowner’s insurance premiums.
In addition, she had to maintain the lawn, pay the electric bill, and maintain the property. If we add up all of those expenses, we can easily say that the lost sale cost her $9,575.
This reminds me of the old story of the importance of “Knowing Where To Tap.”
Have you ever heard the story? I’ll retell it for you:
“A huge steamship boiler system was not working properly. The steamship captain hired a top boiler expert to fix it.
After hearing about the problem the expert asked a few questions and inspected the boiler room. He looked at the pipes that twisted and turned every which way, listened to the boiler and all of the machinery.
He thought for a minute, reached into his tools, and grabbed a small hammer. He gently tapped one valve and “Voila” the problem was fixed. He sent a bill for $1,000 to the owner of the steamship.
When the owner saw the $1,000 invoice he was mad as a hornet’s nest!
He called the expert and confronted him about the bill. “You were only there for 15 minutes! How dare you charge me $1,000!” he said. The expert heard him out and told him that he would send over a new bill.
The owner received another bill the next day. The bill was itemized as follows:
Tapping the valve: $.50.
Knowing where to tap: $995.50
Specialized Knowledge is one of the most valuable resources in the world.
Fortunately, for you, I have specialized knowledge. I know how to sell homes for more money. I know precisely where to “tap the valve” and to solve any problems that come up.
In fact, you will usually make money when you hire me to sell your house.
I know that sounds crazy. The fact that I can sell your home for more money is usually enough to pay my commission. Here is how you make money hiring me. I save you countless hours chasing down surveys, handling inspections, etc.
What is your time worth?
If it isn’t worth anything, then you should sell your home yourself. But, I know that isn’t the case. Your time isn’t worthless! I know from personal experience that most homeowners are successful, hard working individuals.
You have probably spent countless hours becoming skilled at your profession. I am sure that you have a lot of “specialized knowledge” in your area of expertise. An outsider might look at what you do and think it’s easy. It’s not. You know it and I know it.
So, run the numbers. Consider what I have told you. And, when you are ready to hire a highly skilled, professional Realtor, then I give me a call. I’ll be glad to help you.