Wednesday, October 17, 2012

6 Reason to Use a Realtor: If Your Selling: Part One

*Originally post at

In these tough economic times, everyone and I mean everyone is looking to save a little money. Cut a corner or two there, so they can keep a couple of dollars. If you haven't heard the housing market is coming back around. Slowly, which is actually much better than if it came back quickly.  However in some markets it's slower than others. This is causing many people to try and list there own homes. There are pros and cons to this. Today I'll be talking about 6 reasons why you should use a professional Realtor to list your house.

1) To Get the Current Market Value:
    Single family homes are valued by the comparative market analysis method. What this means is that an appraiser takes three or more like houses and basically averages their value. (The true method and social science of appraisals is another topic for another day.) So even though you know what you paid for the house, and what you've done to it. Your house may not be worth what you think it is. At times it can be worth more

                 Behavioral economist  Dan Ariely wrote about the "High Price of Ownership" in his book
Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions goes in to great detail on studies performed at Duke University about people assigning values to items they own. This can and does happen with homes.

2)  Marketing/ Networking:
    When it comes to selling of products, you can have the greatest house, car, widget or wonkit. But if no one knows about it then no on can buy it. When it comes time to selling a home, many people forget that there are marketing costs that are needed. Professional Realtor either have a budget or budget in the cost of newspaper ads, online ads, signs, banners balloons, flyers, MLS (multiple listing service) and mailers. Since Realtors are a licensed profession they have professional connections that can get them great prices on this type of marketing than if you were to walk in off the street.

   Part of the marketing dollars that many Realtors keep off to the side include money to find.... buyers! Depending on their brokerage and local laws. If a Realtor lists the house and sells it. They get both sides of the commission. So it's a double pay day. This means that many Realtors spend as much time networking for listings as they do buyers. That way when the stars aline. They can get a double pay day and lessen the hold time of a house for the current owner. Which also means less holding costs for that owner.

3) Quicker Sale Time:
      This on is very subjective. Realtors have marketing networks in place along with being able to publicly list it through the MLS, your house will be easier to find than if listed by owner. Even though you as the seller can make some money on the sale of your house. It's not your main source of income. Where as it is for your Realtor. So they will be more focused on trying to get you qualified offers. Even though they have budgeted to market your property. The sooner they can sell it. The less that will end up coming out of that commission.

Those are the first three reasons to use a Realtor when selling your home. They weren't put in any special order since every person and every house has different needs and different wants.  Depending on the skills and the job you're in one or none of the reasons may appeal to you. I know with my history in broadcast and social media. The marketing and networking is so easy that it's more hobby than job. Prior to becoming a Realtor and working deeply in the Houston Metro market, I will be honest. I would have fallen prey to over pricing my home. Which would have left it on the market long than desired. 

I'd like to thank you for your time.

Joe Nickels Realtor


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