Selling on Your Own? Words to the Wise

Posted on

Apr 28, 2022

share-this
Share This
In the current fast-moving sellers market, many homeowners believe they can sell their home on their own and save on Realtor commissions. You no doubt would agree that saving $18,000 - $20,000 on your sale would feel very nice, indeed. But be careful -- not everyone can negotiate like a professional. One key factor that sellers do not consider is that your Realtor is there to guide you and to look out for your interests. It is easy to make a verbal mistake that discloses how eager you are to move (read, willing to reduce your price), or that repairs might be necessary (say, if your water or electric bill is much higher than most in the area, indicating a water leak or aging mechanical system).
True story: A seller in a popular and very attractive private community was selling her home on her own. When the buyers noticed many cars on the street, they asked if there was difficulty parking in the neighborhood. The seller answered in a way she felt was honest: Yes, and that homeowners association is doing NOTHING to remedy the problem! I have called them, and they dont return my calls. The buyers, who had three cars, immediately thanked her for her time and left. They were soured not only on her home, but on the entire community, and chose to look elsewhere. Had the seller been prepared to answer the question without expressing her opinion, and had not disparaged the HOA, the buyers may have made a different decision.
As nice as they might be, a buyers agent does not represent your interests! A seemingly innocuous statement about how eager you are to move near family, or how you wish you had upgraded the padding under the carpet, or how the lanai gets so dirty you must sweep daily might trigger a negative reaction for the buyer. Rather than disclosing your position before you would like to, and leaving money on the table, its best not to have discussions with the other party. Deals have fallen apart because the parties did not agree politically, or religiously, or they didnt like the other persons style. Sellers must assume that anything they say directly to the buyers agent is going to be repeated to the buyers, which is why your Realtor will recommend that you not be there during showings.
Discussions between Realtors may be more candid and detailed than those between the sellers and buyers. We know how to present your home in a more objective way, and the words to avoid in conversation and yet maintain the ethics guidelines of the National Association of Realtors.
So, if youre thinking of selling, yes, declutter and de-personalize so that buyers can envision themselves in the home. Yes, clean, and clean some more. Yes, make your home available via a lock box, so that you do not need to be home when buyers arrive with their agent. And yes, listen to your Realtors guidance when it comes to showing your home. After all, it is probably the biggest investment you have ever made, and you want to get top dollar when you sell.
Valerie LaBoy is a Realtor with EXIT Compass Realty. She represents home sellers throughout Sarasota and Charlotte Counties. She can be reached at Valerie@FindMyLanai.com or 941-564-5020.

Other Articles You May Like

Preparing Your Heirs for an Inheritance: Key Questions to Help Ease the Transition

In the popular imagination, receiving an inheritance always sounds like a good thing after all, who doesnt want a financial windfall? And inheritances can certainly be life-altering events. But they can cause challenges, so youll want to help your heirs be prepared.            To assist in this preparation, try to address some key questions affecting your heirs:             Do they know whats in your estate plans? Your family and other heirs will be much better prepared to deal with an inheritance if they know what to expect. Thats why its so important that you share your estate plans with everyone involved. You need to let them know the wishes and decisions youve expressed in your will and other legal arrangements, such as a living trust. Of course, sharing this information doesnt necessarily mean that all your heirs will be completely satisfied with your choices but at least they wont be surprised, and perhaps will be less likely to cause disputes when the time comes to settle your estate.             Will they know what to do with the money or other assets? You may be planning to leave your grown children a sizable amount of assets, possibly including cash, stocks, real estate, IRAs, 401Ks or other types of valuable personal property. But this inheritance brings with it several possible questions: Do your heirs already have an investment platform ready to accept inherited stocks? If you do leave behind rental property or a vacation home, can it be easily sold? These types of issues are generally not hard to resolve, but the more prepared your heirs are for their inheritance, the quicker they can take whatever actions are needed.               Are they prepared to handle any taxes that may result from the inheritance? Unless you have a very large estate, your heirs likely wont face federal estate taxes. (In 2024, the first $13.61 million of an estate is exempt from federal estate taxes.) However, other types of taxes may apply. A few states assess state inheritance taxes, and your heirs could incur federal and/or state income taxes when they withdraw money from inherited assets funded with pre-tax dollars, such as some retirement accounts. They could also face capital gains taxes when they sell inherited assets, such as stocks, for more than they were worth at the time of the inheritance. In any case, inheritance-related taxes can be complex, so you and your family and other heirs should discuss these issues with your tax advisor.             Will they be liable for any outstanding expenses? If you have developed a comprehensive estate plan, it's unlikely your heirs will be on the hook for any outstanding expenses, such as credit card balances or funeral costs. If you do still carry a mortgage, though, and you are planning on leaving your house to your heirs, they may want to be prepared to act quickly to sell it.            When leaving an inheritance, theres a lot involved emotionally, financially and legally. So, do whatever you can to make the entire process as easy as possible for your loved ones. By communicating your wishes regarding the inheritance, and by considering all the issues that may arise, you can go a long way toward achieving the outcomes you desire. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Balancing College Savings and Retirement: How to Prioritize Both for a Secure Future

If youre a parent, you want to do everything you can to help your children succeed in life. Therefore, you might think that one of the best things you can do is to save for your childrens college education. And this is certainly admirable, but could it conflict with your ability to prepare for another key goal your own retirement?Of course, this would not be a problem if you had unlimited means, but most of us dont fall into that category. So, given the financial resources and income you do have, how should you approach the college-versus-retirement issue?Fortunately, its not necessarily an either-or scenario. However, it may make sense to prioritize saving for retirement over college, for two reasons.First, your children have a lot more time to pay for college than you have to save for retirement. In addition to any grants or scholarships your children may receive, they might need to take out loans. While its a good idea to keep this debt load as manageable as possible, its also true that most student loans can be repaid over a long period of time.And heres the second point: One of the best gifts you can give your children is to be self-sufficient in your retirement. You could easily spend two, or even three, decades as a retiree, so you will need to build considerable financial resources to pay for all those years. Your adult children will have their own financial needs to address, so youll be doing them a great favor by relieving them of any financial responsibilities on your behalf. Taking these factors into account, you may want to direct most of your saving and investing efforts toward achieving a comfortable retirement. Consequently, think about putting away as much as you can afford into your IRA and 401(k) or other employer-sponsored retirement plan. Even with this focus on retirement, though, you may find opportunities to save and invest for your childrens education. For example, if you receive bonuses or income tax refunds, or your salary goes up, or youre able to free up money from your budget by reducing your debts, you could use these funds to invest in an education savings vehicle, such as a 529 plan. When you invest in a 529 plan, your earnings and withdrawals are federally tax free, provided the money is used for qualified education expenses such as tuition, room and board, books, and computers. Depending on where you live, you may also get some state tax benefits from your 529 plan. And a 529 plan isnt just for college it can be used for K-12 private school tuition costs, plus expenses from qualified apprenticeship programs, such as those found at trade schools eligible for Title IV federal student aid.It might not be easy to save and invest consistently for your retirement and your childrens education. But both goals are worthy after all, retirement can last a long time and college is expensive. So, try to develop a financial strategy that can allow you to make progress in both areas your efforts may well be rewarded.               Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. 

Investing During Election Season: Focus on Your Strategy, Not the Ballot

With the presidential election just a few weeks away, the public is naturally interested in not just the outcome but what the results will mean for issues of national importance. As a citizen, you likely share these concerns but how about as an investor? After the votes are counted or even before should you make some moves in anticipation of possible changes in policy?  Lets look at the big picture first, through the lens of history. The financial markets have performed well and at times, not so well under Democratic and Republican presidents alike. And the same is true about which party controlled Congress.While it might be an overstatement to say that decisions made in Washington have no effect on the markets, its not always so easy to draw a direct line between what happens there and how the markets perform. For one thing, political candidates often make promises that are not fulfilled, or, if they are, have different results than intended. Also, other institutions can have a significant impact on the markets. For example, the Federal Reserve, which controls short-term interest rates, can certainly affect many market sectors. And there will always be external events, such as foreign conflicts and even natural disasters, that can make short-term impacts on the investment world.So, rather than making changes to your portfolio in anticipation of what might happen if certain candidates get elected, or even in response to actual policy changes, look to other factors to drive your investment decisions. These factors should include the following: Your goals  You probably have short- and long-term goals youd like to achieve. For your short-term goals, such as a wedding, a down payment on a house or a long vacation, you may want to invest in instruments that provide stability of principal. For your long-term goals, most important of which may be a comfortable retirement, you'll need to own a reasonable number of growth-oriented investments.             Your risk tolerance  When you build and maintain your investment portfolio, you'll need to accommodate your individual risk tolerance. All investments carry some type of risk, but you need to be comfortable with the overall risk level of your investments.             Your time horizon  Where you are in life is an important consideration when investing. When you are young and just starting out in your career, you may be able to focus more on growth, as you have time to overcome the inevitable short-term market downturns. But as you near retirement, you may want to consolidate any gains you may have achieved, and lower your risk level, by moving your portfolio toward a somewhat more conservative approach. Even in retirement, though, you will need some growth potential to stay ahead of inflation.             Your needs for liquidity  As you invest, youll need to maintain an adequate amount of cash and cash equivalents in your holdings. Without this liquidity, you might be forced to sell long-term investments in case you have unexpected expenses.             In any case, when it comes to investing, you may want to pay less attention to what names are on the ballot and instead vote for the longer-term strategies that reflect your needs and goals. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com