For Sale by Owner. In recent years we all have noticed the increased number of those signs sprouting on our lawns... The reason: KEEPING THE COMMISSION in your pocket. Saving money is on everyone's mind and some succeed in doing so by selling their home on their own. However many homeowners shoot themselves in the foot by choosing to go that route. It all sounds great in the beginning, in fact it looks amazing, especially in a strong, aggressive, upward market. But how does it really work if things slow down drastically? What happens when little tiny element goes out alignment? Oh, let's see: the obscenely high gas prices, for example? What happens with those doing it on their own? What's happening to the For Sale by Owner crowd? Without current access to the market data, many of them are left behind, refusing to accept the facts. When things get tough in the Real Estate market, people get anxious and things start to happen even if that same market was soaring just 6 months ago. Today there are 944 current, active listings on the Barrie Real Estate Board. Every two days we get about 25-50 new listings and each one only has about a week, perhaps two to really get the ball going and dazzle the buyer. Buyer on the other hand is happy and content. He has plenty to choose from... welcome to the Buyers market! Now what happens, when a savvy Homeowner decides to sell on his own in this tough market? We all have an idea how much our homes are worth. That monetary value is engraved in our mind. We have a tendency to forget that the true value of a home is the actual amount someone is willing to pay for it. Many of those For Sale by Owner people concentrate so much on the bottom line that they forget everything else that goes on around them. We also have those people listing with a Realtor at a price nowhere near where it should be. Your home is probably worth as much as you say it is... but what good will it do you... if you CAN NOT sell it, when you need to? Here's where we have to be drastically honest with ourselves. If you truly need to sell, if your situation is tough, you really don't have a choice, than do your research, or get a Realtor to do that research for you. Get as much accurate information as possible and then base your pricing decisions on that info. If a Realtor provides you with a Comparable Market Analysis (based on recent sales of similar homes in your immediate area) and it says that your home will sell in the price bracket of $280K-$290K take their word for it. The data that we are working with is true and easily verifiable. When we tell you $290,000 and you list for $315,000 because your next door neighbour listed his identical home for $320,000, you both will be sitting there with your For Sale signs on your lawns for months to come! Why? sale by owner Because we are all smart, and savvy Buyers! Yourself included. When you go shopping for your next home, you will be looking for the best deal there is. You will do your homework, your Realtor will guide you through the process and advise you on all the little details. So when a Buyer goes shopping for his new home, by the time he looks at yours, he already has been through 15 other ones... If your home has nothing to impress them... they will start looking for all the negative elements to bring the price down, even those you may consider positives... That's why when your home goes on the market, "Sale By Owner" or with a Realtor, you must make sure that it is ready, spotless and available for viewings at all times. Do not make the mistakes of relying solely on your own perception of value. It may be a great mistake that will cause you the sale. If you have a pool, a finished basement, a wet bar, exotic hardwood flooring that cosed you an arm and a leg... do not assume that your potential buyer will be willing to pay extra for those. To them, those elements will be welcomed bonuses. Nothing more. Did you know that in Barrie, homes with finished basements sell a lot faster than those with unfinished ones? The difference in price however, between those with finished basements and those with unfinished once will shock you. It is about $1,500! Yes, just $1,500. To the buyer a finished basement is just... a bonus. These days, the replacement value of the home is much higher than it's true value. This is especially true with bigger, upscale homes. Smart people will understand that and will accept it, even though it is so hard to accept. In this slowing Barrie market you must be smarter than your competition. Those who are, cut their losses, get their homes ready, list them close to their true market value and sell within a month of listing. Than they watch their neighbours frantically trying to lower prices on their stale listings, and finally witness in amazement the final sale event accompanied by the tearful confessions of: "I should have..." from those same neighbours. I know well how hard it is to let go and say I will take less for my home. This is your hard earned money, after all. But the bottom line is: how much are you willing to loose if you continue to play the game of "I can get more, just wait and see". Barrie Market is now correcting itself and the game days are over. Be smart about it. List with a Realtor... after all it is our business and we know it well. All the best to all Home owners who decided to go with the "For Sale by Owner" signs! If you need help with a Comparable Market Analysis, give me a call, I will be happy to help! On a final note; if you have your mind on going the "Sale by Owner" route, my hat is off for you. But please do not attempt to purchase a home without a Realtor. That can cost you a lot of money and grief in the long run... Read about it here. Return to top of Sale by Owner page.
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