Why Do I Need a Broker to Sell My Home?

In our business, we often come across folks who attempt to sell their properties on their own.

Properties for sale by unrepresented sellers are sometimes referred to as FSBOs, or For Sale By Owners. Almost always, the underlying motivation for these individuals is to save the cost of the broker’s fee.

Is this a wise move? We don’t think so. Over and over again we see houses listed this way, languishing unsold. The National Association of Realtors recently released their 2010 Profile of Home Buyers and Sellers. Their research shows that nationally only 9 percent of homes actually sold were done so without a broker. And of that small percentage, half were sold to people the owner already knew, such as family, friends, tenants or neighbors.

So why use a broker? One reason is that getting the right exposure for your property requires more than just a sign on the front lawn and a newspaper ad. Think about it. If a potential buyer does not drive down your street or read the local newspaper, how would he know your house is for sale?

According to NAR, 91 percent of all home searches today begin on the Internet. A knowledgeable broker knows the best websites for exposure and has access to many different sites locally, nationally and internationally. We use about 40, and it is noteworthy that some key sites, including the local Hamptons site HREO, the regional site MLSLI.com, the national site Realtor.com or the international site WorldProperties.com do not accept listings without broker representation.

Do you know the federal, state and local regulations needed to sell a home? Your broker will. For example, all homes sold in Southampton, whether sold privately or through a broker, are required to have smoke detectors and carbon monoxide detectors installed. Do you know what the prospective owner could do with the property? Could he add a bathroom addition? Is there room for a swimming pool?  A real estate professional is the resource needed to answer these questions.

Are you experienced in negotiating? When a buyer makes an offer, the broker has the professional knowledge and experience to negotiate the best and highest price for the seller. An analysis has been done to determine the right price to list the home so it will sell. The broker has knowledge of recent sales, competitive homes on the market and market trends. He knows how to stage the home to highlight its best attributes and he knows how to capture the property’s best features in good quality photography and virtual tours. NAR's statistics show that when brokers are involved, homes actually sell for 42 percent more.  

A common drawback for the unrepresented seller appears over and over again. He discovers late in the process that the prospective buyer does not have the funds to purchase the property after taking it off the market and losing out on other prospective deals. A professional real estate broker makes sure that a buyer is financially viable and prequalified for the purchase, leaving no room for this error to occur.

We will let you in on a secret. Most brokers, when they sell their own homes, work with other brokers. They do this, despite the fee, because they know exposure is important, and it may very well be the other broker who will bring the buyer. They recognize the value of their fellow professionals and welcome their services.

A friend recently asked us what we thought of him attempting to market his home without the help of a broker. Our answer to our friend: If you had a ruptured appendix, would you attempt an appendectomy to save the doctor’s fee?

For more information about Southampton real estate sales, please visit our website www.SouthamptonRE.com.