04/08/2022
You've probably heard, but the real estate market is absolutely wild right now.
It's been SO good that I'm hearing some home buyers/sellers thinking they'll try doing it by themselves (without a Realtor).
I wanted to take a second to give you some reasons you should reconsider this based on personal experiences, I've seen just in the past few months.
Think you'll save on commission as a seller?
I've had SO MANY have appraised values on for sale by owners (FSBO's) come in *significantly* higher than the purchase price. It's been wild. Like, tens of thousands of dollars. They didn't have access to the same data Realtors do (or, have the same experience in strategy of pricing/marketing a home). I can point to several examples where a seller could've listed with a Realtor for the appraised value and still made more money (and had a lot less headaches, because they have literally no idea what they're doing... and there's a LOT that happens after the house gets "Sold").
Did you know that you can sell a home before you have a home bought? And give yourself time to find a new home after your "old" home is under contract?
That's a perfect example of crazy-strange ways to structure a deal that you don't know about, but an experienced Realtor does. It removes a lot of anxiety and frustration around this wild market! There is a LONG list of this stuff -- and if you try to explain it to a one-off attorney that's writing it up, it's a disaster (I've seen it happen).
Think as a seller you know what to expect and can navigate it alone?
You'll be dealing directly with a buyer. As it turns out, buying a home is a pretty emotional experience for most people. And people get irrational when they're emotional. I've seen sellers make plans, under the impression their home is sold, and then the buyer flips out -- and there's nobody to really help manage the emotions and they bail, leaving the seller with their next (dream) home under contract, but unable to perform. Having an experienced independent 3rd party to navigate things IS important.
What if there ARE appraisal issues?
I've had a couple of homes not appraise for the price that was agreed upon. The outcomes have varied -- but I will tell you the deal where there weren't Realtors involved, the deal fell apart entirely. Nobody was able to talk sense into anyone -- and the value agreed on as the purchase price was not all based on data (which is how the business works). I have yet to have a deal bomb with Realtors involved when appraisal issues came up.
What if home inspection issues come up?
Do you know what's customary to be asked for on an inspection? Do you know when stuff should be fixed? Do you know how to manage the buyer's expectations through all of that? If no, it's a nightmare when it happens.
What would happen if you had several buyers, competing for your home at the same time?
For a seller, in the end, it's all about supply and demand. Will you find a buyer not being on the MLS? Probably. Will you find the same number of buyers in a very short period of time? Definitely no. We've seen SO MANY crazy situations play out for sellers lately -- I couldn't imagine not taking advantage of that (and for buyers, I couldn't imagine not working with a great Realtor to give you every edge you can get to win in this market!).
What if the buyer's lender goofs up?
This seems crazy, but I see it all the time. If you don't have the experience of a Realtor to help you navigate when people aren't doing their job, you can find yourself in a really tough position. We are a second look ALL THE TIME on crazy stuff that happens.
How do you navigate closing date/possession?
Oh, that didn't cross your mind? LOL. Yea, it's always a mess with FSBO's. Always. I even try to help resolve it. Nobody cares when it's not in writing (and I've never seen it in writing with a FSBO).
Who should you hire/involve with writing the purchase agreement?
I've personally seen contracts take anywhere from 1 day to 34 days (currently not complete in this case...) to be written up. If you don't have an attorney that you trust, this can be a nightmare.
The examples could go on -- but hopefully the point is obvious.
Buying/Selling a home alone can be a living nightmare -- and, often times, cost you more than it could save you.
Just something to ponder as the market looks like it won't be slowing down anytime soon.
Make it a great day!
David Wakefield
PrimeLending - Jacksonville Team Wakefield - PrimeLending NMLS: 180383
