LOSING MONEY BY SAVING MONEY
As the property market in Wellington heats up and properties sell faster, there are more frustrated buyers desperately searching for a home, causing them to approach home owners directly, hoping to avoid being placed in competition with other buyers - yet again - and secure a purchase at a price that they are happy with. But is that the best option for the home owner – or the buyer?
It is easy to understand the attraction of selling to someone who has approached privately – no need to do all the jobs to get the house ready for sale, no marketing costs, no opens homes or buyers constantly wanting to view - and, most importantly no agent commission to pay. So the house is sold nice and easy and money is saved - or is it? What if the sale price is markedly lower that it might have been if the property had had been marketed fully and buyers had competed to secure it?
Time and time again I am hearing stories from people in my area about how they sold privately and saved themselves so much money on agents fees. But what if that resulted in the house selling for a lot less than it may have on the open market, with buyers competing for it and a skilled agent negotiating on your behalf.
Did they save $20,000 on fees and marketing costs or did that transaction actually cost them ? A situation I saw recently is a case in point – a private offer which seemed very attractive and was significantly over the RV was nearly a done deal, but after taking advice they took the property to the market – and the resulting price was over $100,000 more than that offer. So $20,000 saved could have actually meant $80,000 lost.
Your home is your biggest asset and how do you really know what it is worth?. As any good agent doing an appraisal will tell you, there is no crystal ball to tell us what a home will sell for. They can give you a range of likely prices, and a list of recent comparable sales (as required by the Real Estate Authority) But past sales are just that – it is looking backward to the market that has been, not forward to where the market is heading.
So many variables create the eventual sale price for any property – Timing plays a big part – and so does competition - what other properties are on the market at the same time that your property is on and might be competing with, the number of buyers that are looking for a home like yours and how strong their motivation is, global and national financial conditions and predictions, interest rates and so on.
Even the most successful Real estate agents (including myself) don’t sell their own homes – they understand the value of having a middle person in the transaction.
We employ professionals without question to do so many things in our lives – repair our plumbing, look after our teeth, build our homes, and teach our children.
So when it comes to selling the biggest asset we own, surely it makes sense to employ an experienced propfessional. One which will give us all the best advice on when, how, and what to do to get that best price possible and then negotiate for every last dollar possible.
So please call me to discover how to get the maximum price for your home and let me – the real Estate Professional – look after it for you every step of the way.