It’s generally accepted in most aspects of life that you get what you pay for. If you spend a lot of money on a car, you’ll likely be driving something very nice with a lot of features and a high safety rating. If you spend less, you’ll get fewer bells and whistles. If you hire a licensed Plumber with good references, you’re likely to get quality work that meets code and helps you protect your investment. If you hire a handyman from out of the blue who says he knows a thing or two about plumbing, you may get a repair that isn’t up to code and won’t last. Etc.
Some home sellers, however, think their best move is to hire a discount real estate brokerage and save money on fees. Surely, they assume, this means they’ll make more money on the sale of their house. Unfortunately, in many cases it doesn’t pan out that way.
With virtually every business in the world, lower fees equate to reduced services. In plenty of scenarios, this is acceptable. I pay less to pump my own gas because I don’t mind taking that task on and I try to save money where I can. But your Guelph home is likely your largest investment. When selling, are you sure it makes sense to save fees when it means sacrificing marketing and promotion services? After all, many of those services are the very things that generate exposure and interest for your house – and that convince people your price is fair.
If you’re considering a discount brokerage, be sure to ask questions and get the facts. What, exactly, they are going to do to help you sell your home. Will they hire a professional photographer to make high-quality images? Is a video part of their marketing strategy? (It should be a part of every real estate agent’s marketing strategy.) What kind of print and online advertising will they undertake and with what frequency? Is social media outreach a part of their online promotion plan? Will they host open houses for real estate agents and the general public? Will they pre-qualify interested buyers? Will they counsel you on ways to Stage your home and prepare it for the market – including basics like protecting valuables during viewings? Or will they simply plop a sign in your yard and wish you the best of luck?
I’ve seen it time and time again. Someone lists their home with a discounted brokerage and the extent of marketing and promotion is slim to none. The home lingers on the market. Eventually, sellers get frustrated (or worse, desperate ) and buyers see a potential deal, since the house is not selling. The house sells for less than market value after being on the market too long – and between the money spent maintaining the home for those extra months and the low selling price, at the end of the day it’s a wash. A faster sale and better price would have paid for the seller’s fees… if not more.
Be sure to ask a lot of questions. The answers may surprise you and sometimes too good to be true is exactly that.
