Why someone shouldn't sell their own? Part 2
· The above points also helps identify who’s really serious and who’s just a tire kicker wasting your time.
· Statistically 14% of homes are sold privately, there is also a statistic that says that 90% of those private sales end up in fraud in one form or another. Here’s why
· Most money laundering rings specifically target private sales it’s an easy way to clean the money, banks however do a lot of digging when you sell the house without representation on a cash deal and your money could get stuck for a while or never close the deal at all.
· Also nothing prevents a new buyer from suing you after moving in, even with an inspection they can claim faulty wiring, leaks or damage of some kind and because you’re not insured you will have to either defend yourself or give them money back. This is known as a material defect that the buyer can claim was not made aware by you the seller. Savvy buyers who look for private sales play this game all the time. It gets close to closing date and they say well I see cracks or some other deficiency and if you don’t correct it I will not pay or come after you for it. Now they have you hostage and people cave into the demands.
· With a realtor in place the contract prevents the buyer from these future claims and should they arise, the Realtor is insured for this very thing leaving you the seller clear of worry or responsibility
· The money is big deal too as the payment is held in the brokerage trust account to make sure when you hand over title of the house you get paid. If a deal falls through the crack as it can when a buyer doesn’t have their financing in order the contract you have with the realtor allows you to get damages from the other brokerage again because they are insured, it secures you. Without it you are chasing an unknown buyer with your lawyer that in most cases will cost you more than what it’s worth.
· Not all Realtors do what they are suppose to do so it’s understandable why people say hay “ why do I need a realtor anyway” most miss some real important stuff. And it’s true that some home owners would actually do a better job. Most realtors out there don’t really earn their keep.
· The law of averages also can swing out of favour. The best way to get the best sale is to have the most amount of qualified people look at your property. On a private sale many agents representing buyers don’t even bother showing the home for the same legal reasons of fraud and such.. Right of the bat you could be losing 60 to 70% of the potential buyers out there. Most agents also associate a private sell with less commission and deter their clients from looking at the property.
· In turn your left with fewer buyers and the remaining will be out to low ball you because they know there’s no agent present. Most people who look for a private sell are expecting to pay less. Ask yourself the same question if you saw a property listed privately how would you approach price. In short the pool of potential buyers is limited primarily to unrepresented and unqualified prospects.