Home Sellers Guide

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How can I be sure I'm getting the best deal?

If you are a private seller, this is a difficult question. We all shop for various items on a regular basis. For instance, you may be looking for a new shirt. You can go from store to store and compare price and quality before making a decision. The garment has tags that state exactly what the product is made of, where it's made, and how much it costs. This is a nice casual way to do business because everything is clearly labeled and you have plenty of time to make a decision. Chances are, if you're unsure and want to think it over for a few days, the shirt will still be there when you return. Unfortunately, it's not so simple with houses.

When selling a home, you're marketing a unique item. Each one is different. Each buyer is an individual.

Depending on the product, a buyer-to-property match can be relatively easy to make, or very difficult. A buyer may come along and make an offer that appears to be their best, at least that's what they said it was. Whether or not they are sincere, you may never know. You might turn them down; thinking you can do better. It may be the first offer you've gotten, and if your home's only been up for sale for a few days, you might figure that if you wait a little longer, a better deal will come along. It often doesn't.

Very often the best offer is the first offer.

Realtors® know this happens all the time. Having an experienced professional assist in making this decision can take a lot of the stress out of the sale. Without knowledge and experience on your side, your decision is at best just a guess. You could waste the best opportunities you will have because of lack of experience. Realtors® know that the hottest activity on any home is almost always within the first few weeks. Unfortunately, many sellers find out the hard way - once the buyer has moved on to something else. The "hottest period" is often wasted by the private seller because of inexperience. There's nothing harder to live-down than the "one that got away."

I'll just wait for my price...

To know when to accept an offer, you must keep up with market trends. Let's say, for example, you receive an offer that's $5,000 less than what you want to sell at. That may not sound like a big deal, right? "I'll just wait for someone who will pay $5,000 more," you say. Okay, let's consider the financial impact of rejecting this offer. Another two months go by, and you get another offer for the same price, still $5,000 short. But now, you're starting to get worried, maybe you've got deadlines to meet and you decide to accept this offer. How much did you lose? $5,000? Wrong. If you had accepted the original offer, you would have saved two months of: mortgage payments, taxes, utilities, insurance, electric, heat, maintenance and other expenses. In addition, what did the time lost cost you? Maybe there was another home you would have preferred to purchase that was lost in the wait, as well as other opportunities lost. Now take those figures and add them onto $5,000. That's what you lost. The waiting game often costs more than it reaps.

So, how do you know? If you've done your homework well, and prepared yourself completely by doing your research, you will know when the "right one comes along." Even if it's the only one that's come along.

Most sellers prefer to rely on the advice of a professional. Realtors® can offer the best advice when it comes down to making this decision. Sure, there's always a chance that a better offer could come along - eventually. But, it might be a better bet that you can expect worse ones. And, once you decide to pass, there isn't a "buyer department store" to go to for a replacement. Only solid experience can tell you when you should seriously consider accepting an offer.

When it comes to selling a home, those who used a real estate professional received more for their money compared to those who did not. There is a significant monetary difference between a professionally assisted and privately handled home sale. On average, a professionally assisted sale begins with a 16% higher asking price and ends with a 13% higher closing price than when a home is sold privately.

Source: NAR "Targeting Prospective Home Buyers and Sellers," 1995

Reprinted from "How to Sell it Fast & Get the Right Price", by Laurie J. Bloom
(c) 1998, Multiple Listing Service of Long Island, Inc. All Rights Reserved.
For your free copy, contact your local MLS office.