If you’re thinking of selling your house, it’s important to work with someone who understands how the market is changing and what it means for you. Here are five reasons working with a professional can ensure you’ll get the most out of your sale.
1. They’re Experts on Market Trends
With today’s housing market defined by change, it’s critical to work with someone who knows the latest information and how it impacts your goals. An expert real estate advisor knows about national trends and your local area too. More importantly, they’ll give insight to what all of this means for you, so they’ll be able to help you make a decision based on trustworthy, data-bound information.
2. A Local Professional Knows How To Set the Right Price for Your Home
(This will be the longest yet most important section)
Real estate professionals look at a variety of factors, like the condition of your home and any upgrades you’ve made, with an unbiased eye. They compare your house to recently sold homes in your area to find the best price for today’s market so your house sells quickly.
Get a second opinion if you feel the suggested price of your home is too low. Especially from anyone offering to buy your home. If they are not purchasing it as their primary residence, they are purchasing it as an investment; to rent or to flip. You could potentially be losing a lot of money from unscrupulous individuals/companies. I've personally sold homes for clients for a substantially higher amount than what they were initially told by companies offering to buy their homes. The offer - always a quick cash offer at a significantly lower price. They want it before you have the chance to get 2nd or 3rd opinions.
Home price appreciation has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. At the other end of the spectrum; pricing your house too high can deter buyers or cause your house to sit on the market for longer.
If there is one golden nugget of professional advice I can give anyone looking to sell a property it is the following: Beware of a suggested price that seems way off from others. This is known as inflating prices just to win a listing and it's deceptive practice. A real estate agent that inflates a list price beyond reality just to get the listing may be harmful to the sale of your house. The deceptive practice of inflating the list price is effective because the client wants to hear that their house is worth a high price. There are agents that are more than eager to feed into this delusion. However, good agents base their suggested list prices on real conditions. If you want to get the most for your house, and everybody does, you would naturally pick the real estate agent with the inflated price. Now you're falling victim to the Inflatable Agent's trap. Good agents give truthful facts, even when the facts may not be attractive. They know you need to know the facts to effectively sell your house. I see this sort of thing happening all the time. Never use price as a factor for choosing an agent. Here's why it will work against you.
Chasing the Market
The first month of the listing is usually when the house receives the most attention. If your house is priced too high initially then it will not receive the attention that it could receive if it were priced right. Waiting a month to drop the price to a more reasonable price is too late. You've already blown it. It's too late because your listing is getting stale. Even worse, in a competitive market prices may be dropping so your reduced price may be overpriced for the current market. The process repeats and the price drops further keeping the house on the market longer. In most cases, if it's priced right, it will sell for more than if it's priced wrong, even if the wrong price is higher.
Increased Time on Market
Your house becomes less attractive to home buyers each passing day it stays on the market. That's why it's important to be competitive from day one. Past a certain amount of time your house becomes stale and it will remain stale until the next price drop.
Significant Price Drop
I've mentioned price drops three times already. If the agent lets you chase the market with small price reductions, the only way to catch up is a big price drop. By significantly dropping the price you attract the attention of the bargain shoppers. Bargain shoppers never pay retail so expect to get an offer for a "lowball" offer.
Sometimes Less is More
In most cases, inflating a list price and gradually reducing it over time results in a lower sales price than the other agent's lower suggested list prices. It also means a longer time on market.
3. A Real Estate Advisor Helps Maximize Your Pool of Buyers
Since buyer demand has cooled this year, you’ll want to do what you can to help bring in more buyers. Real estate professionals have a wide range of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS); to ensure your house gets in front of people looking to make a purchase. Investopedia explains why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.”
Without access to your agent’s tools and marketing expertise, your buyer pool – and
your home’s selling potential – is limited.
4. A Real Estate Expert Will Read and Understand the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. The National Association of Realtors (NAR) puts it like this:
“There’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
5. A Local Professional Is a Skilled Negotiator
In today’s market, buyers are regaining some negotiation power. If you sell without an expert, you’ll be responsible for any back-and-forth. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible.
The buyer’s agent, who will use their expertise to advocate for the buyer.
The inspection company, which works for the buyer and will almost always find concerns with the house.
The appraiser, who assesses the property’s value to protect the lender.
Instead of going toe-to-toe with these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
Bottom Line
Don’t go at it alone. If you’re planning to sell your house this spring, work with a real estate professional so you have an expert by your side to guide you in today’s market.