The path isn’t always easy when selling a house, but it can often appear more simple than it is. There is a step-by-step process to it all, even with countless details to attend to.
For example, step one may be to find a real estate agent. That’s how it has always been, but FSBO (For Sale By Owner) has been getting more traction lately. In this case, the homeowner has decided to skip step one altogether and sell without the help of a real estate agent.
On paper, this might make sense. You just have to follow the steps. And with more people trying to buy houses than there are houses for sale, selling should be easy. However, few things are ever as straightforward as they first appear. If everything goes well, your transaction might go smoothly and without a hitch. But if the unexpected happens, selling a house on your own can be a harrowing experience. Why would anyone decide to go this route, and what are the advantages if you find a reputable real estate expert to help you?
The more you know, the more likely you are to experience a successful transaction. Here are some resources to help you along the way:
- Selling a House in Peterborough From A to Z
- What a Concierge Realtor® Can Do to Sell Your Home
- A Guide to Peterborough’s Luxury Housing Market
The Myth of the Do-It-Yourself Approach
Let’s start by taking a closer look at the step-by-step process of selling your home. We’ve already established that we are skipping the first step of finding a Realtor®. What’s next?
Depending on the market, the answer is, “it depends.” The market changes fast, sometimes overnight. A worldwide pandemic can spark insatiable demand for housing, resulting in fierce bidding wars and multiple offers, all well over the asking price.
An announcement by the Bank of Canada to increase interest rates can bring that same robust, fast-paced seller’s market to a crawl. And that’s just what has happened in two short years!
Finding the Late or Missing Data
Your first step, if you choose to sell FSBO, is to perform extensive market research. Even when conditions favour sellers, you still need a price point that attracts buyers. How do you know how much your home is worth? You’ll need accurate data to figure out what homes are selling in your area and for how much.
Luckily, we’re living in the modern age, and the Internet provides fast access to nearly anything you want to know. Unfortunately, regional real estate boards don’t tend to post the latest statistics until the month is over, which means that vital information is already out of date by the time you find it.
You might take your friend’s or your neighbour’s word for it when they tell you how much they think your property is worth. Then again, you might want to take those numbers with a grain of salt, especially if they’re based on a home evaluation they had months earlier. After much stumbling and speculation, you decide on a listing price and decide to run with it. What comes next?
Preparing Your Home for a Sale
Now, the real work begins as it’s time to make your house dazzle for potential buyers who will walk through. You know that you can’t go wrong with a thorough cleaning and decluttering. A sparkling clean home always makes a great first impression!
From there, you’ll likely want to perform a few upgrades that will raise the perceived value of your home even more. Which ones? Some can cost a couple hundred dollars and add thousands to your final selling price. Others will cost you thousands of dollars while you endure living in a construction zone, only to end up with nothing to show for it.
Without the help of a Realtor® with boots on the ground in your area, you may feel like you’re taking a stab in the dark when it comes to renovations that offer a high return on investment.
A well-connected agent could also recommend vetted and reputable contractors to handle these upgrades for you, thus saving you even more time and hard work on these all-important home preparations.
Finding the Buyers
After all that time and effort to prepare your house, you may want to sit back and take a well-deserved break. But there is no rest for those who sell homes, and your work is just beginning. Now, it’s time to advertise your listing and bring it to the attention of qualified buyers everywhere.
If you had a real estate agent with a network, this might be a matter of a few phone calls and getting your home on the MLS®, Realtor.ca, and the various real estate boards throughout your region. As a layperson, many advertising platforms options aren’t available to you.
Instead, you may decide to rely on word of mouth and Facebook Marketplace. These avenues may generate a lot of interest in your listing, but will they generate the right interest from the right people?
Interest and desire alone do not sell houses, although they can attract many curiosity seekers who would love a free tour of your home. Your mission is to determine who is serious and who just wants a quick peek.
Negotiating the Terms of Your Sale
Once you begin to attract potential buyers, you will have to answer their many questions and negotiate the terms of the sale. This is one of the most challenging aspects of the transaction since you and the buyer have equal and opposite goals. You want to earn the highest possible amount from your sale, and they want to pay as little as they can.
If you’re a skilled salesperson and negotiator, you might be able to maximize the value of your home. However, very few people have these skills, and you may end up accepting less than you deserve just to get the transaction over with.
Then There’s the Paperwork
For better or worse, you’ve accepted an offer, and it’s all over, right? Wrong. Now it’s time for the closing process, and that means dealing with lawyers, banks, appraisers, and home inspectors. It also means contending with a mountain of paperwork and contracts, all written in legalese that resemble hieroglyphics to the untrained eye. And yet, every T must be crossed and every I dotted; otherwise the transaction could all fall apart this close to the finish line.
Why are buyers flocking to Peterborough? Learn more in a few of our related reads below:
- Why Peterborough is Perfect for Families
- A Walk Through the Neighbourhoods of Peterborough
- Top Schools in Peterborough
What’s It All For?
As you can see, selling a house on your own is more complicated than you realize. Why would anyone consider doing all this alone when a real estate agent can take so much of the burden off your shoulders? In many cases, it’s all to save on commissions, which can make up a significant portion of your closing costs.
During challenging conditions, it’s understandable that people will do everything they can to save money. However, challenging times are likely when you need help the most. A local professional takes the pressure off by performing every necessary task with the highest level of skill and expertise.
FSBO might be a good idea for sellers with extensive real estate experience, who have the skills to maximize the value of their homes and don’t mind the amount of work involved. However, for everyone else, you will have far less stress and will almost always end up with more money in your account by working with a local expert. Instead of looking at what you will save by doing everything yourself, think of what you will gain with the right real estate professional to guide and support you every step of the way.
Are you thinking about selling in Peterborough or the Kawarthas? We are here to answer your most pressing questions. Reach out today at 705-243-9797 or team@jeffandkatie.ca for more information or to get started.
