“Price is what you pay. Value is what you get.” — Warren Buffet
From setting up advertisements to closing a legitimate win-win deal, selling a property without the help of an agent can be a challenging (and risky) feat. This is especially true if you’re selling luxury homes, which can make you more vulnerable to encountering costly problems. Agents are basically the jack of all trades in the real estate industry, making them an invaluable tool when it comes to transferring your property to a new owner.
Now, if you think skipping on the commission and selling solo is still a more practical choice, below are some the reasons why you should think otherwise.
Pricing Errors are Costly Mistakes
It’s hard to put a price on something you’ve worked so hard on, but once you decide to sell your property, you need to make sure your pricing is in line with your home’s real value. Overpricing or underpricing your home can either put your property on the market for too long or contribute to losing a large amount of money.
This is where an agent comes in. A real estate agent creates a comparative market analysis, also known as CMA, which reviews all the nearby properties that are currently in the market or were sold to past buyers. By the use of a CMA, you can gather the information you need to set a competitive selling price. How much are buyers willing to pay for properties that have similarities to yours? Is now the best time for you to sell? A real estate agent negotiates without emotion and can play the good cop, bad cop card. They are there to advise you and help you avoid expensive mistakes when you’re selling luxury homes.
Documentation Takes Time and Effort
When it comes to selling luxury estates, there is no such thing as a one-size-fits-all contract. From studying all the ordinances and required disclosures, to getting everything into writing, the job of home sellers can go on and on. To make matters worse, errors in documentation can lead to unnecessary expenses that could have been avoided if a real estate agent was there to guide you in completing and processing all the documents you need and protect you from making innocent mistakes that can become legal issues in the future.
Do you know what documents have to be provided to the buyer? Do you know how to fill out disclosures and why it’s important to disclose anything and everything that comes to mind since your ownership.? When it comes to documentation, you are best to leave it to the pros who are in the trenches dealing with difficult transactions every day.
Listing Errors Can Lead to Liabilities
Why hire a real estate agent when you can just pay a lawyer to close a transaction? One word: liability. Selling luxury homes in wine country is extremely complicated because of all the different components which often include gentleman’s vineyards, but once you have accepted an Offer from a buyer and then take it to a lawyer, it’s too late to get out of things you have committed to, including a sale price that maybe lower than market value.
Since listing errors are lawsuits just waiting to happen, hiring a real estate agent is a more practical choice, especially if you are selling luxury estates. Say for instance, you declared that your house is protected by slate roof, but later, your buyer realized that your roof is made up of asphalt. With the help of an agent, you could have spotted this error before you posted the listing.
Neglecting Market Trends Can Make You Lose Money
It may seem more cost-efficient to just skip on the commission and market your property on your own, but in reality, you are going to lose more money by doing so. Based on a 2015 study, the median selling price of a For Sale by Owner (FSBO) home is approximately 16% less than an agent-assisted home. The difference can further escalate, depending on the relationship of the seller and the buyer. Just imagine selling luxury homes to your aunt and you’d know the difference.
Real estate agents don’t just help you find buyers and close a contract–they analyze market trends, stage your home and find the best buyers for you. They are equipped with the knowledge and skills to promote your home on various platforms with worldwide reach where you can find people who are qualified to buy your property, making it easier for you to reach your goal.
Time is Your Most Valuable Resource
If there’s anything that real estate agents can offer you, it’s the freedom to focus all your energy on more productive tasks. Instead of putting up posters or meeting up with potential buyers, you can just focus on growing your business while your real estate agent does all the work for you.
More importantly, hiring a real estate agent speeds up the selling process since agents have a web of connections in the real estate industry. According to a statistical report, about 18% of FSBOs fell behind their selling timeframe. By maximizing your agent’s resources, your chances at selling luxury homes within your preferred time table increases.
Selling Luxury Homes Without Representation Can Lead to Problems
What if an inspector ramps up the charges for house repairs that he identifies while doing an inspection for a buyer? How do you negotiate directly with a buyer when they come back asking for a ridiculously high credit after completing inspections? How do you keep the deal together when the second negotiation raises its ugly head? These things happen all the time, especially once the seller thinks the sale is in the bag and has emotionally moved on and found a replacement property. This is when you need a master negotiator who can not only save the deal but save you from unnecessary stress and financial loss.
Selling luxury estates is not a one-man job. It is a collaborative effort that can turn into a wonderful and fulfilling experience. By hiring a luxury Napa Valley real estate agent, you can take the stress off your plate and enjoy the process without sacrificing your peace of mind and your personal finances.