Sunday, 18 March 2018

Sunday, 18 March 2018

Private sales - don't do it !

In the traditional real estate market, sellers and buyers in France & the UK, rely on estate agents to find buyers and agree / close the deal.However, some sellers forego the help of an agent and do a For Sale by Owner (FSBO for short). Many follow this approach because they want to avoid the dreaded word – “commission”.

Typically, estate agents charge anything from 4 - 8% of the sale price as a commission. This fee is always included in the advertised price, so regardless of how the contract is worded, the buyer pays the agency.

However, property owners are not as well informed as estate agents, despite what you think about an agent!

Many vendors make mistakes when doing a sale on their own, which could be avoided with the help of an estate agent.

Some of the adverts on Private Sale sites, and many of those on Facebook are truly cringe worthy. Absolutely awful in terms of information and images!

In addition, most houses on the market for sale by the owner, are on the market at significantly inflated prices as the sellers make the mistake of overpricing the property.

Meanwhile, a good estate agent has experience in how to correctly price properties, has access to a range of tools and data to help them accurately calculate the price of a property.

Moreover, some are do not have negotiation skills or simply possess the knowledge to smoothly and successfully close the transaction. Offers and negotiations often bring out the animal in individuals, as we know only too well.

Finally, the FSBO process can be emotionally difficult for sellers who are personally attached to their home and have a hard time of letting them go. This is, in fact, a reason why so many owners overprice their properties as to them their homes have sentimental value.

Quality of sale – estate agents are expert in the preparation of their sales particulars, and a DIY approach could put off a lot of serious buyers or make others think ‘where else in the house has the homeowner cut cost’.

An experienced estate agent is backed by a wealth of information about the housing market, both their own recent sales prices, competitors, valuations from their Notaire contacts, the statistics available both regionally and nationally. Estate agents live and breathe houses every day which makes them well-equipped to know the do’s and don’ts.

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