This list shows some daunting tasks a DIY seller has to do in the course of selling his house especially during a slowdown in the property market. I can assure you that this list is not exhaustive.
Competing With Professional Agents
When the market is slowing down, there are surplus of sellers in the market which results in a buyers’ market, a situation where buyers generally call the shot. This is arguably, the worse time to be a DIY seller, also known as, for sale by owner (FSBO). Let’s assume 80% of all sellers engage a property agent to sell, a DIY seller will then be competing directly against these professionals on marketing quality, exposure and strategies. Unless you are willing to sell at a (significant) loss, what do you think are your odds?
On the other hand, let’s assume 80% of all buyers engage a property agent to search for their dream home. Who do you think the buyer agents prefer to match their buyer to? DIY sellers or sellers represented by an agent?
Yes, it is the sellers who are represented by an agent; this is because the buyer agents do not have to do qualifying checks with the seller (as his agent would have done it already) and focus his time on finding the best dream home for his buyer. Furthermore, in the event that this transaction is void due to some carelessness by the seller’s agent, the agent is covered by professional indemnity where the buyer would be able to get some compensation. Hence, for the interest of their clients, agents like to work with agents.
More importantly, as a DIY seller, do you think you have enough skills to negotiate on the selling pricing with the professionals?
In the current market outlook, sellers do not have the luxury of time. Learning from others is sometimes better than learning the hard way by going through it yourself. Before you decide to be a DIY seller, do ask your friends or relatives who have sold their house themselves and talk to a property agent on his plans on representing you to sell at your best interest.
Lastly, if you are still going to sell your house yourself, good luck! And please drop me a note with your property listing. I will like to put you in my watch list! (for the interest of my clients) 🙂