Nov. 27, 2012
real estate agent,
Tania Michaels of Focus Commercial Group
, has closed a traditional real estate transaction in which she represented the seller of a rental property who, for four months, had attempted to sell his property without the use of an agent.
Michaels sold the property for just over list price and closed escrow within 18 days of going live on the market.
Wrong price, lack of exposure to a large number of qualified buyers, interested buyers not properly qualified and an insufficient real estate sales knowledge typically prevent "For Sale by Owners" from successfully selling their own property.
"In the world of residential real estate, most 'For Sale by Owners' do not have access to the private networks, infrastructure and knowledge it takes to get a property sold quickly and for the highest price. Less than 10% of homes are sold by owner and most of those are because they already knew the buyer," says Michaels.
The vast disintermediation of many industries via online marketplaces often creates the perception that real estate is a mere commodity, easily bought and sold over the internet. When the common "For Sale by Owner" obstacles arise however, owners quickly realize the limitations of not having a full-time real estate agent doing the job.
Selling a property in 18 days finds its success, first of all, with having an expert price the property correctly, says Michaels. "The further away you are from the true market value of that property, the number of buyers diminishes. For example, if a property is overpriced, it will be compared to properties that offer more for the same price. This is one of the ways an owner loses a good qualified buyer by overpricing their property." Michaels also notes that since most buyers employ financing to purchase real estate a full appraisal will be required by the lender as a pre-condition to closing the sale. If the appraisal does not come in at the higher price, buyers often come back and try to renegotiate the price down later anyway.