For a Realtor, selling a house is extremely easy and much of it is automated. Most of the work is done by the homeowner. There are hundreds of articles that show you how to prepare your house for selling. Even if you hire a Realtor, you will still need to do all these things yourself. Therefore, give serious consideration to whether or not the services your Realtor provides are worth the expense. Here are some of the services for which you might be better off hiring your own expert or doing the tasks yourself:
- Preparing your house for selling: Articles: HGTV (click here), Realtor.com (click here), OpenDoor (click here). There are many more. Remove clutter, meticulous landscaping, fresh paint and carpet are just a few of the expected recommendations. Best money spent is usually on cosmetics and important repairs.
- Determine when you are going to sell. The first two weeks of your listing is when you will likely see the most activity and interest. So it is best to avoid holidays and slow seasons for the launch of your listing. Here’s a Zillow article on the best time of year to sell (click here). Here’s one from OpenDoor (click here).
- Determine the asking price. Use an appraiser to measure square footage and to determine the asking price range. Appraisers often complain that far too many properties on the Multiple Listing Service (MLS) are advertised by Realtors with incorrect square footage. Don’t become a statistic – hire an appraiser to measure your house and help determine an asking price for selling your home. Realtors are not appraisers and they often employ two strategies to obtain your listing:
- Recommend a price that is below market. These Realtors claim to sell a very high percentage of the homes that they list. They convince their clients to list below market to generate a quick commission. Clients often lose valuable equity in these transactions.
- Recommend a price that is above market. These Realtors want to get the listing and appeal to the emotional desires of sellers. They know that once they get the listing that they can lower the price when it doesn’t sell. This causes home sellers to miss some prime marketing opportunities and usually results in the property selling for less than it should have.
- Staging a house. If you decide to stage your house, don’t let the Realtor hire the stager. Do it yourself. Just Google Minnesota house stagers. Here are a few of many: Stageworks (click here), Full Bloom House Staging (click here), Lionheart House Staging (click here). There are many more.
- Professional photography. Beautiful images of your home are essential to properly marketing your house. Do NOT let the Realtor take the pictures and don’t try to do it yourself (even if you are amateur photographer). Here are just a few Minnesota house photographers who do everything from stills to drone photography: J Fuerst Photography (click here), Michael Speake Photography (click here), and here is an article on the best real estate photographers in Minnesota (click here).
- Scheduling appointments. Did you know that few Realtors ever talk to the buyer agents who schedule appointments to see your home? The process is completely automated and utilizes auto generated text messages to you, the client. Even the feedback obtained from agents is done through an automated process.
- Open houses. Unless open houses are conducted by the homeowner themselves, they are rarely worth the trouble. Open houses rarely sell houses and really serve as a free marketing platform for Realtors to find new clients. Plus, what better way for thieves to case your house or steal from you? – they are a huge security risk.
- Negotiating. Did you know that is illegal for Realtors to negotiate or advocate for you with other Realtors from the same firm? That means that you should probably NEVER hire an agent from a large firm. If you are considering working with an agent from a large firm who claims to be a great negotiator, they are forgetting to tell you that in many situations they will be legally prohibited from negotiating on your behalf. Here is a link to the licensing statute (click here) and look for this:
“Dual agency occurs when one broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same broker each represent a party to the transaction… Dual agents may not advocate for one party to the detriment of the other.”
Real estate agents command a huge sum of money for their services, yet many of their services are not needed. And did you know that one of the biggest complaints about Realtors is that they fail to communicate with their clients? The most effective way to market a house is to get it on the MLS, Zillow, Trulia, Realtor.com, IDX sites and put a sign in the yard. I can do that for you and save you thousands of dollars.
Disclaimer: The above service providers are not intended to be recommendations. I do not know many of these providers and when I do provide firm names to my clients it is only based upon my client recommendations and experiences.