Check out these four tricks used to get you to spend more (without you knowing it).
5 Minute Read
Thanks to the internet, selling your home is a lot easier than it was even a decade ago. But while technology certainly has its perks, that doesn’t mean you should jump at every new trend, especially when it comes to one of your biggest financial investments.
Quality matters. That’s why a true professional is a pivotal member of your team when it comes to selling your home—and skimping can cost you. So think twice before you try one of these two trendy home-selling tactics.
Using a Flat-Fee MLS Listing Service
A flat-fee MLS listing service offers what seems like a great deal: one up-front cost to put your home on the Multiple Listing Service (MLS). And since the MLS is the primary resource agents and buyers use when they look for available homes in your area, it makes sense to skip the real estate commission and pay a one-time fee, right? Wrong! While your chances of getting the right buyer through your front door do go up the more exposure your home gets, using a flat-fee MLS listing service leaves you stranded as soon as your home lands on the internet.
Local experts you can trust.Find an ELP
Getting your home on the market is only the beginning! With a flat-fee MLS listing service, you’ll be on your own when it comes to the nitty gritty aspects of a real estate transaction. Everything from marketing your home to negotiating the terms of the contract falls on your shoulders. And you can forget about getting expert advice on how to price your home correctly!
Some flat-fee services even charge you an extra fee to load more than six photos on the MLS site. You might save money by avoiding the standard listing agent commission, but you still have to pay for your home’s marketing, the closing fees, the buyer’s agent commission, and any “extras.”
Sellers make an average of 18% more on their home when they use a full-service real estate agent.
Your home is one of your biggest financial assets, so treat it that way. Don’t skimp on professional service just to save a few bucks. The odds are stacked against you when you try to navigate selling your home on your own, and it will cost you in the long run.
Consider this: According to the National Association of Realtors, home sellers make an average of 18% more on their home when they use a full-service real estate agent compared to those who sell solo. That’s a stat you can’t ignore!
Relying on Online Home Values to Accurately Price Your Home
Technology has completely changed the way buyers and sellers approach the real estate process. And that’s a great thing! Websites offer photos of homes for sale as well as virtual tours, commentary and links to tax records. It couldn’t be more convenient. But the ease of internet browsing can also give home owners false confidence that they can sell their home on their own by relying on an online home value estimate for their pricing strategy.
We talked to a few of Dave’s Endorsed Local Providers (ELPs) to get their take on the accuracy of online home values. Amy Ryan, a real estate ELP in Denver, Colorado, recently listed a home for $449,000, and it just went under contract for $10,000 more than the list price! Curious about the online home value estimate? $350,000! Think of how much this seller would have left on the table if he had based his pricing off of that estimate!
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Dennis Williams, an ELP in Portland, Oregon, took on a listing that had been sitting on the market without an offer for months. The problem: It was overpriced. The seller based the price on an online estimate that said his home was worth $715,000, but the final sales price was $630,000. That’s an $85,000 difference! That seller wasted months waiting for his home to sell at an unrealistic price.
Online home value sites often miss the mark when it comes to accurate pricing. Many factors influence your home’s value, and they go beyond the size and number of bedrooms. An internet service simply can’t account for your recent kitchen remodel, the rising home values in your area, or the work that needs to be done in the basement.
It pays to work with a pro.
If you’re basing your home price on an online estimate and it’s wrong, that will cost you—either in time or in thousands of dollars. Is it worth it?
Professional Advice Pays Off
It pays to work with a pro. You may sell a few homes in your lifetime, but an experienced real estate agent will likely have sold dozens of homes in the past year alone. Protect your investment by hiring an agent whose services cover it all—everything from professional photography to your home-pricing strategy. Looking for a trusted professional in your area? Check out the top-notch agents who Dave recommends near you!