Dear Mike,
My wife and I considering listing our home and mentioned this to some friends at a recent dinner party who advised us to save some money and list it on our own. They also mentioned it is now possible to pay a nominal fee and get it listed on the MLS. Realizing the internet has impacted greater access to information and ways of doing business, in theory it seems to make sense and see if we can avoid paying some or most of the fees. That being said we also typically believe you get what you pay for. We thought it would be helpful for us and others who may be considering the DIY vs. broker option to better understand the benefits and ROI (paying fees or not) of working with a broker.
Can you explain?
I would draw upon another adage “ If one represents them self in a court case “the saying goes possibly the representative is not the best value! ( this quote has numerous definitions but this is the least colorful)
One of the reasons to work with a REALTOR is the 1.4 million representatives in the country have a strict Code of Ethics they adhere too. Effectively, this code requires the representative to work in the Best interest of the Buyer or Seller they represent. In Colorado we have a unique situation in that getting a license to practice Real Estate requires considerably more class time to procure the license. Thus, practitioners in Colorado are all Brokers and not sale agents. This practice is an effort to offer the Buyer or Seller a better educated and more professional representative than licensed in most states.
No matter what side the Broker represents term “Trusted Advisor” is the manner in which you should be provided service.
The following are some of the Key areas to facilitate the transaction and seek to attain the mutually agreed upon goals for the transaction:
• Initial meeting to review market activity, discuss comparable pricing , develop a marketing plan( much more sophisticated than putting in MLS).
o This marketing plan starts with professional photography, (including videos, possible aerial shots or video, potential for 3D technology to enhance presentation, virtual or real staging to help Buyers see the property in its best condition.
o Open House plan and clarifying availability for showings as Buyers expect properties to be available within reasonable timelines. The Broker will help mange this process which can be time consuming and inconvenient for Seller to be available.
o Advertising is a significant part of the process and incudes assuring the MLS, all Real Estate Portals, and out reach by the Broker are optimized to give a quality presentation. Depending upon price point and market this can be a significant cost item.
• Upon receipt of an offer the negotiation process begins and the Broker will be the conduit for communication and evaluation concerning the offer. This includes any contingencies that come with the offer and explanation of pros and cons.
• Once the offer is accepted your advisor will help with the tasks of getting to the closing table. This includes Title Insurance procurement, assisting in your response to Title Insurance questions or procurement. Other issues that may arise are Loan trouble for Buyer, appraisal objections, property inspection objections etc.
Everything I have mentioned may occur on the transaction and an experienced Broker can help guide you to closing. The Broker on the Buyer side also goes through a similar process and once again their knowledge helps to facilitate the end result.
My final comment after spending my entire adult life in sales and marketing. Price is the first thought one might have however, when buying or selling one of the biggest assets in your life both financially and lifestyle. I invoke a comment expressed to me by a mentor many years ago. One should Always Focus on Value not just a price tag.
