For sale by owner perspectives
When we think of for sale by owner, what we think depends on our perspective. From my way of thinking there are three very different perspectives the seller or vendor, the buyer and the Realtor.
From the sellers perspective, his ability to sell, depends on how he is able to manage the competition, the competition being other private sellers and the professional Realtors. Selling takes time, skill and resources. There are some non professionals that have an abundance of these and don't mind being around to show there property to prospective buyers. What is to gain by selling your own property? Well thats kind of a no brainer most are trying to save on commissions.
From the Buyers prospective the gain in buying from a private sale is price. As buyers typically pay nothing for the use of a professional Realtor then, the added leg work and hassle negotiating there own deal researching properties, prices and market conditions must have a pay off, other than the satisfaction of doing it themselves. There are some private sellers that are more than willing to split there savings with the buyer.
Now the Realtors perspective. Now I realize that my opinions on this subject are going to be viewed as somewhat one-sided, however is the purpose of a blog not to voice ones opinion? I will let you decide on whether I am being fair. For sure private sales are an added competition that we do not need. There are some private sellers that are far better at selling their property than a lot of Realtors, but a t what cost. Realtors have access not only to private listings, as do the public. We also have access to all properties on the MLS, on only those on the market today but those from years ago, the price they sold for, how long they where on the market and a wealth of information such as market rends and statistics,not available to the general public.This helps us set price both as a sellers representative and when negotiating for our client buyer,
I as Re/max agent have access to no less than 4 websites all dedicated to advertising Real Estate for sale in the Edmonton area, as well as the MLS listing service and Realtor .ca. When listed on those websites the listing populates out to numerous other Realtors and affiliated websites marketing the listing to buyers all across the country and around the world. This takes me about 2-3 hours to market to thousands.
We have a finely honed communication network between Realtors and offices, strict time lines, regulatory bodies that oversee our business practices and ethics.
Yes the seller pays a commission to be able to use the services of a Realtor, by doing so he also buys fair ground for himself and the buyer. Why should the seller want a fair playing field for the buyer? Because without it he must give up something else, and that comes down to price. He first must attract the buyer against that of the professional Realtor. Then there has to be some incentive for the buyer to leave the security of a professional to deal with someone he knows nothing about and has no recourse, in the event of a dispute, other than the legal system. Even then if they win there is no guarantee, that after a lengthy court process, they will ever collect what they are owed. Realtors and the Brokerages, they work for, have a standards of practice and ethical guidelines which they must adhere to. Much like doctors lawyers and other professionals we must carry insurance that protects our clients, and those we do business with, that in the unlikely event of an error or omission ensures that the insured party is compensated.
I am not against the private sellers. Selling a house is a complex, time consuming and resource draining endeavor and my hat goes off to those who can do it themselves, unfortunately the reality is that they will most likely end end up spending more on marketing and promotion than a Realtor and still sell for a lower price, than could have been obtained using a Realtor and all the resources at their disposal.
Thats just my 2 cents.
I would love to hear your comments on this subject.
Making your Real Estate needs my priority.
Dave Dry
www.davedry.ca
Licensed Realtor in the province of Alberta