By Rod Davis, CEO, BBB serving Southeast Florida and the Caribbean
Consumers have options when selling a house or condo. The traditional model of hiring a realtor remains the most common approach with 89% of sales in the US in 2020 being sold with the assistance of a realtor according to the National Association of Realtors. Another 8% were sold by owner and a mix of direct purchases from investors rounds out the other main type of sale. Since our homes are most often our largest investment, making the right choice to sell your property is one of the most important decisions you will make.
Direct Sales to Investors
Some consumers do not want to make repairs, be inconvenienced by potential buyers coming into their home and want a quick sale so they may be tempted by an offer to sell their property to an investor. BBB offers complete tips if you are considering this option at: bbb.org/article/news-releases/24075-bbb-tip-selling-your-home-for-quick-cash-not-so-fast
Essential steps include:
- Research any investor business at BBB.org and other sites to make sure they are legitimate, trustworthy and have a good track record for honest business.
- Obtain a realistic view of the value of your property by looking at online data and comparable sales in your neighborhood. Realtors have ready access to aggregated data, but local sales records are available online for most counties and online services such as Redfin, Zillow and others permit you to review current listings.
- Get offers from several business investors so you can compare the offers and the terms.
4. Scams happen, so make sure you fully evaluate any business you are considering. (See step 1) Scammers prey on a seller’s desire to make a quick sale by offering deals that seem too good to be true. They also take advantage of the fact that home investors don’t need any credentials to buy property. Never give money to an investor before the closing date. Complete all transactions through a closing or escrow agent and don’t let anyone pressure you into making payments “off the books.”
Traditional Sale
If you decide the best option for you is to hire a professional, it does not diminish the importance of a thorough vetting process to find the best option for your home sale.
- Talk to neighbors, friends and co-workers who have sold property recently in your neighborhood to obtain recommendations for top real estate agents in your area. Monitor mailers and advertising in your neighborhood and look for agents that impress you with their marketing.
- Compile a list of several agents and if possible, stop by an open house to see how they manage the process of selling and marketing a property. Even better, talk to the homeowner and gain direct feedback about working with the agent and his/her results. Check out BBB.org, Google, Yelp and realty related sites to see what customers share about the agent.
- Meet with any real estate agent you are considering, ask them how many sales they have made in the past year, the average time from listing to sale and for the percentage of listing price received by his/her clients. Ask for a marketing plan for how they will promote your property and if they assist with staging or have any other recommendations for you to help obtain a quick sale and top dollar.
- Don’t just settle for the form contract. It is important to have the ability to move on to another option if the results are not meeting goals. Keep the contract term fairly short (e.g. 45-60 days) with a renewal option that you control. Since you will be comparing proposal to select an agent, discuss the commission and negotiate the best deal you can. If the agent is also helping to find your next home, they have more incentive to work with you on the commission.
- Select a real estate agent that you have an open, honest and comfortable connection. Selling a home can be stressful and good communication and working collaboratively is essential.
For Sale by Owner
Some homeowners decide to sell the home in the traditional manner (i.e. marketing the availability of the home, setting a price, putting the property on the internet and available listing services, managing open house events and scheduling and hosting individuals seeking to view the property).
Websites like FSBO.com and ForSaleByOwner.com offer in depth resources and guides to help you manage the process to sell your home directly. Before considering this option, ask yourself a few questions:
- Are you a detailed and organized person with the time and energy to manage the sale of your home?
- Do you have the marketing skills and/or ability to utilize the resources available to have your home presented in the best possible manner and to reach enough potential buyers to gain quality offers?
- Since you will be representing your own interests, are you comfortable and capable to show the property and handle discussions and negotiations?
Each home is different, the circumstances and priorities for each homeowner are different. Only you can decide the best approach to sell your home.
