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Some Factors for the Owner’s Consideration
- Owners often think they can save the commission
by selling their property themselves. This is usually not the case. Buyer’s today are knowledgeable and think that an
owner will overprice his/her property so if it doesn’t sell and he/she turns it over to a broker, he will still net
what he wants. Therefore, buyers will make an offer less the commission and the owner will then net less than if he had a
broker sell it.
- Since owners are not familiar with the market, they
sometimes overprice their property and by the time all costs and expenses are paid, they net less money than if the sales
had been handled by a competent broker.
- Prospects do not buy until they think the selling
price is right. Brokers have sales records of comparable properties in the area to justify the subject property’s sales
price.
- The owner is only advertising one property. The
broker is advertising many. A prospect will call on one ad and often buy a home other than the one he called on. Thus, brokers
have more prospects.
- Home buyers are “shoppers”. They want
to see other homes for comparison. The owner only has one home to show. A broker is trained to show a home professionally,
present benefits, overcome objections, and make the sale.
- For-Sale-By-Owner ads attract unqualified lookers.
Brokers are experienced in qualifying buyers financially. Brokers don’t waste time.
- Some potentially good prospects will drive past
a house, see an owner’s sign, but drive on because they are turned off by the outside appearance of the home. Even though
the home’s interior benefits may have been exactly what they were looking for. Those prospects are lost. A broker will
describe a home’s interior benefits to prepare the prospect, show him inside, past his first impression of the home,
and a sale will result from the personal contact.
- Buyer’s who find no one around go on to look
at other houses and seldom return. With a broker, they can jot down a name and number off the sign and call to arrange an
appointment.
- If objections are not handled properly, a sale will
not result. Techniques for handling objections in an effective and professional manner are the most difficult of all techniques
to master. Buyers raise as many objections as they can, putting the owner at a distinct disadvantage. Brokers are trained
to handle these objections.
- Sellers can not be objective about their property,
but brokers can be. Owners are emotionally involved and see things differently. A broker can put him/herself in the position
of the buyer and affect a sale.
- Homes are frequently sold on second contracts. The
broker has a follow-up system. If the owner tries to follow up, each time he calls the buyer, he is lowering his resistance
so the buyer thinks the longer he waits the more anxious the owner will become and eventually accept a low price.
- Inexperienced owners often encounter difficulties
in negotiations and sometimes lose the prospect. As “impersonal professional go-betweens” brokers are in a far
better position to negotiate toward a sale.
- Financing is normally arranged by the selling broker.
He places many loans through several lending institutions. He is in a better position to obtain a more favorable loan for
the buyer and in cases of refinancing will obtain a more reasonable discount point quote, thus saving the seller money that
certainly helps make up for the commission.
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