A luxury beach home may be a significant financial investment, and you may have recently decided that now is the right time to sell the property for a great profit. Almost immediately after making this decision, you will be faced with the task of deciding how to sell the property. You can either use a real estate agent who specializes in luxury real estate sales or go through the for sale by owner process. Both have their pros and cons, and a closer look at these pros and cons will help you to make a more informed decision about how to proceed.
One of the most common reasons why individuals choose to sell their own property rather than to use real estate agent services is to avoid paying broker fees. Traditionally, the seller pays for both the buyer’s agent and the seller’s agent fees, so you may pay a fee that equates to five percent, six percent or more of the sales price. This can be exorbitant on a high-priced property like your beach house. However, you may not save as much money as you might initially think when you sell the property on your own. Consider, for example, that a buyer may still choose to use a real estate agent, and you may still be required to pay for that agent’s share of the fees.
The Sales Price
You may not think that there would be a difference in sales price based on how you choose to list the home for sale, but this may not be a correct assumption. First, consider that a real estate agent will use market data to arrive at a competitive sales price for your beach house. The competitive sales price may be determined to help you sell the property quickly and for top dollar. When an owner attempts to estimate an accurate sales price, there is a chance that he or she may overvalue the home. This could dissuade otherwise interested parties from touring the property and making an offer. Even if you do get a high offer, there is a chance that the property may not appraise for that amount, and the deal could fall through. On the other hand, if a seller makes a guesstimate that is too low for the market, the property may sell quickly, but the owner may leave money on the table. Keep in mind that many contracts are negotiated after the original sales price has been agreed upon, and the negotiation skills of a reputable real estate agent can be invaluable during negotiations.
A final point to consider is the timing of the transaction. As mentioned earlier, a property that is priced below market may attract numerous buyers and offers in a short period of time. A property that is priced too high for the market may have the opposite results. In addition to this, consider that a real estate agent who specializes in luxury real estate may use proven marketing techniques to attract the attention of interested buyers. For example, it is increasingly common for high-end homes to feature an online listing that includes an aerial photograph of the property and a virtual tour. Without these marketing features, high-end clientele may have minimal interest in your luxury home.
As you can see, there is a cost associated with using the services of a real estate agent, but there are considerable benefits that a skilled agent brings to the table. When selling a high-dollar luxury home, the last thing you want to do is to pay more than necessary in fees. However, you also do not want to lose money on the sales price or through negotiations. You also do not want the property to sit on the market for longer than necessary as this can encourage low-ball offers. Consider each of these valid points carefully as you explore the possibilities in greater detail.
Courtesy TheTopTier Digital Media