Information and Tips on Selling Your Home
Are you considering selling your home? Well, if you’ve done much research, I’m sure you know that times are changing. You HAVE choices.
For Sale By Owner
For Sale By Owner has always been an option for someone selling their home. There are various reasons that a homeowner may try this option. Perhaps they have no equity in their home and cannot afford representation, are in a market (unlike the Charlotte area) where going FSBO is occassionally successful, or simply think that they can do it just as good as a Realtor. This may be a homeowner’s only option but they should know that there are many details involved with selling a home. There are the costs of signs and other materials, the costs of marketing, the prequalification of prospective buyers, understanding and interpreting contracts, arranging “showings”, keeping up with important dates, frequent communication with the other party, negotiations and how to handle them, understanding your rights in regards to home inspections, knowledge of reputable contractors and attorneys, etc. A good Realtor earns their commission and if possible, a homeowner should consider hiring one.
Limited Service Brokers
Limited Service Brokers are becoming more common. They are not all exactly the same but generally speaking, a limited service broker offers to put your home on the Multiple Listing Service (MLS) for a small upfront fee such as $395 – $795 and from there you essentially act as a “for sale by owner” and are on your own. Often, a condition may be that you agree to compensate a buyer agent if they bring the buyer. The agent may or may not take pictures, provide a yard sign, etc. Often, they act in an a la carte manner. This can, indeed, save you a little money…if it works. Keep in mind that you are already agreeing to pay 3% (standard commission to a buyer agent) so the only money you would be saving is the typical 3% (due to the listing company upon closing, if the home closes) minus the upfront, non-refundable fee that you have already paid…and there is no guarantee that your home will even sell.
Remember, because you are acting as a for sale by owner, you will have no representation on your end. Because of this, the buyer agent usually has to work harder and take on more responsibility to make sure that things are on the right track for BOTH sides of the transaction. That means more work to the buyer agent for the same commission. Because a “limited service listing” must be noted as such in the MLS, a buyer agent may want to avoid your listing and show other homes for sale first. In my opinion, the most important thing to know is that simply putting a home on the MLS just doesn’t cut it. The MLS is not a magical, “sure thing” for getting a home sold. It is simply a database of homes for sale in our particular market. And, there is a difference between simply placing the bare facts of a home on the MLS and placing it on there with care and diligence while paying special attention to pictures, description, characteristics, etc.
Full Service Brokers
Full Service Brokers typically give you more exposure. They may put your home on the MLS, take one or more pictures, place yard/directional signs where appropriate, provide flyers or inside brochures, more and better internet exposure, provide a lockbox, schedule appointments for showings, newspaper advertising, magazine ads, or a combination of things, and will provide you with representation. Many full service companies charge a full 6% commission (3% to buyer agent and 3% on the listing side).
At Hendrix Properties, we give all of our listings FULL service. If you are contemplating selling your Charlotte, North Carolina area home and want to experience what top-notch, full service is all about, contact us. We truly want what is best for you.