Recently, I was talking to a friend of mine who happens to be a talented video producer in metro Detroit. He was telling me how listing his home for sale by owner was a no-brainer because of the hot real estate market. His plan consisted of putting together a fancy broker open house, Facebook advertising and an amazing video reel he produced of his home complete with drone footage and a voiceover.
It worked; he got an offer in the very first week for his full asking price. However, when it came down to the inspection, the deal fell through because of some disclosures he didn’t realize he had to do. Frustrated, he ended up hiring a Realtor; the house was listed, marketed and sold in a matter of days – and he got more money than he was asking for initially.
Like me, you might be wondering how this happened. I decided to ask John Wentworth III, one of our local real estate experts, why he thinks this happened to my friend.
“Actually this scenario happens more than you think,” Wentworth explains. “But you don’t always hear about it because most of the time people are embarrassed or upset.”
Wentworth explains that the easy part is putting a sign in your yard to list your home for sale by owner. But when it comes down to negotiations and closing, in the moment, you have to be prepared. The only way to be prepared is to have experience in those moments.
“I know how to negotiate best for my clients in those moments because I get to know them, and understand their needs versus their wants,” Wentworth states. “Even with thousands of real estate transactions under my belt, I still can’t give a canned answer for a situation until I have all the information. There are many moving parts to each transaction and only an experienced Realtor is qualified to advise and navigate the process with you.”
One of the benefits Wentworth finds with working with a team of Realtors is that they can all pool their experiences to get the best result for their clients.
“Even the guy who owns ForSaleByOwner.com listed his house with a Realtor after six months on the market. After the Realtor listed the property, the condo soon attracted multiple offers and ended up closing for $150,000 more than the original asking price,” Wentworth explains, citing a Wall Street Journal article called “DIY Guru Gets Broker Help.”
“Whenever I hear about someone who sold their property for sale by owner, I usually wonder if they actually got the best price for their asset because more times than not, they usually sell for less,” Wentworth says. “Or if they are listing it higher than they should, they will incur more carrying costs and end up making less in the long run. That is where an experienced Realtor with a successful track record can help you figure out the best plan of action for your property.”