Do you Need a Real Estate Agent in a Seller’s Market?
By Bill Budler
One seller recently received 17 offers on his house! The average time on the market for Lincoln homes is just two days, many sell in just one. Another seller got $21,000 over his asking price. There are many more buyers than sellers right now creating perhaps the strongest seller’s market in modern history. It’s a great time to sell your home if you are ready and willing.
But do you still need a professional realtor, even in this red-hot market?
A For-Sale-By-Owner (FSBO) yard sign only costs
a few dollars at the hardware store. There are even some websites where you can post your house for sale. Put your house up for sale and you will get some lookers. Keep in mind, however, not every prospect is a qualified buyer. That seller with 17 offers likely had over thirty sets of prospects through their house. Do you just stick that sign in the yard and let anyone who wanders by walk through your home? What about COVID-19 precautions? Scheduling and managing all those appointments can be very challenging.
The average written offer consists of around 24 pages of legal documents.
The seller with 17 offers had over 400 pages to study before deciding which one, if any, to accept.
Each contract had to be carefully evaluated for their financial elements, like the net proceeds, type of financing or cash purchase, and closing costs. Additionally, you need to consider terms of purchase, closing dates, contingencies, potential obstacles, requests and demands from the potential buyer, and inspections required. Perhaps most importantly, determine the likelihood of the transaction actually reaching closing. No small task for an inexperienced FSBO seller.
What happens if you accept an offer way over your asking price only to find out later that the appraisal does not support that price? What are your options? What are the buyer’s options? Is it time to start
over or can the deal be saved? What is an FHA escape clause? How does an escalation addendum impact an offer? And what does the section about inspections mean?
After accepting an offer, now it’s time to track all the moving parts through the inspections, repairs, and dealing with the lenders and title company. Riding shotgun to keep the process on track for a positive outcome is important.
YES, working with a realtor is a great idea, especially in this market.
Bill Budler, Seniors Real Estate Specialist, BancWise Realty