Using a REALTOR® to sell your home through the MLS system almost always puts more money in the homeowner’s pocket at the end of the day. Recently I had client wanting to sell a very desirable property on Vancouver’s Westside. I won’t use names or addresses, but the numbers I am using are actual and so is this story from just a few weeks ago.
Our client was approached by two neighbors who wanted to purchase the home direct from our client offering to save the property owner close to $100,000 in Real Estate Fees. Who wouldn’t want to save $100,000? The first neighbor approached our client with an offer at $3.5 million, which our client was initially very satisfied with. The neighbor tied-up the property for the better part of two weeks while trying to sort out financing only to determine they could not get the financing so this deal collapsed. The second neighbor approached our client with a subject free offer at $3.4 million with a two week closing. This was a pretty tempting offer after going through two frustrating weeks with the first offer. Our client felt the offer at $3.4 million was a bit low, and we suggested to her that she list the property on MLS and see if we could achieve a better price for her. We had a few weeks earlier provided our client with a Market Evaluation suggesting a sale price in the range of $3.5 to $3.7 million. Keep in mind, by listing on MLS the client would be paying appox $100,000 in real estate fees.
We went ahead and listed the home on MLS. After 1 week on the market and five competing offers we sold the home for $3,850,000 with a subject free offer and $300,000 deposit closing in three weeks! Our client put $250,000 more in their pockets over the offer at $3.5 million and $350,000 over the subject free offer at $3.4 million.
We hear so many complaints about the real estate fees paid to REALTORS®, here is a good example to show that spending $100,000 to gain $350,000 is money well spent. Using a REALTOR® to sell your home really does make sense. We feel on average it can add 10% to the price you may get offered privately.
Be careful if you have been approached at your front door from someone wanting to buy your home direct. This approach to selling can cost you hundreds of thousands of tax free dollars. Should this happen contact your REALTOR® to find out what the real market value of your home is.