When selling privately, whether you like it or not, real estate agents are going to be knocking on your door. They are going to try to talk you out of selling privately, and into granting them a sole and exclusive mandate. And when you refuse to change your mind, they are going to try and trick you into granting them open mandates to market your property.
Yes, that seems very cynical. But the experiences of many private sellers tell us that it is true.
Now, lets just clear this up before we go any further: Real estate agents are not your enemy. You might find that real estate agents can be very helpful, even if you are selling privately. There is no reason for you to be rude to the poor real estate agent. And definately do not shoot or throw stuff at them!
See every visit or phone call from a real estate agent as an opportunity. He/she gives you an ideal chance to hone your people skills. At worst you will get a chance to practice saying "no". But real estate agents could also give you great information about your competition, the other properties in the market in your area. This information can give you a good idea if your asking price is in the ballpark range. A real estate agent may even become an ally in your private sale venture, without costing you a cent.
So how do you deal with real estate agents when you are a private seller? Let's start by looking at how they will try to persuade you not to sell privately. Real Estate Agents can be very convincing when they tell you about all the things that can go wrong when you decide to sell privately:
They'll say: "Private sales are inconvenient for the seller."
But you know that private sales are inconvenient for the real estate agents.
They'll say: "Only 14% of all sellers try a private sale and 95% of those eventually end up selling with the help of an agent."
But you know it is because the agents nagged those poor people into submission.
They'll say: "You have no experience in selling properties"
But you know that you have lots of other experience that will come in handy.
They'll say: "You lack the relevant knowledge."
But you know that you have done your homework and have an attorney on your side.
They'll say: "Estate agents sell properties every day - There are very few surprises."
But you know that you ave done your homework about private sales. You have read about nearly all the surprises you can expect.
They'll say: "You will need to NEGOTIATE!"
But you know that life is just one big negotiation.
They'll say: "The buyers who buy at private sales are bargain hunters who'll want to save the agent's commission for themselves."
But you know that they can only try.
They'll say: "You will need to MARKET!"
But you know that you will have total control over your marketing.
They'll say: "It will cost more."
But you know that you will be able to account for every cent spent on marketing.
They'll say: "Advertising will cost you a pretty penny, because unlike estate agents, you receive no advertising discount from your local newspapers."
But you know that real estate agencies advertise in newspapers to attract SELLERS, not buyers. And you know of more cost effective ways to advertise for BUYERS.
They'll say: "You will need to qualify buyers."
But you know how, because you have done your homework.
They'll say: "Are you really rude enough to ask someone about their finances?"
But you know that you are, especially if that person's finances are going to influence your own.
They'll say: "You will need financial and legal advice."
But you know that you have professionals just waiting for your call.
They'll say: "Drawing up a contract of sale is easy! But getting expert advice on the common law aspects of the sale and having a GOOD contract drawn up that protects your interests may cost thousands in legal fees."
But you know that your contract is in place already, and that it has been approved by your attorney.
They'll say: "You'll need access to property statistics for fixing the right price."
But you know that property statistics are public information you can easily obtain.
They'll say: "Agents have access to an existing buyer base."
But you know that buyers chase properties, not real estate agents.
They'll say: "You'll throw your doors open to any stranger off the street!"
But you know that very few agents leave copies of prospective buyers' id's at the office so that the strangers they bring into your house can be identified. But the agent makes a very good point there. So be very security concious when selling privately, or through a real estate agent.
They'll say: "You'll give up all your privacy. Callers will expect to view your home at all hours, and you will let them, thinking that this one might be the one to make an offer."
But you know that your no is no.
They'll say: "Give me a sole mandate."
But you know that you want to sell privately.
They'll say: "Okay. I get that you want to sell privately. But would you mind me sending someone over who might just buy the property?"
But you know that the agent is just fishing for an open mandate now.
How real estate agents can help you
Believe it or not, you can get along with most of the real estate agents who contact you. In fact, you can get them to absolutely love you!
Being a private seller, who is going to be extra neat and thorough, you will be gathering valuable information about a lot of prospective buyers. And if a real estate agent is very, very nice to you, nothing stops you from passing some of that information on, if you feel like it.
Real estate agents are problem solvers, and if someone came to you and left without buying your property, it means that they still have a problem that needs solving, and the real estate agent would just love to solve it for them.
But how is feeding a nice real estate agent information going to help you sell your own property? Well, real estate agents have access to all kinds of nice, bright and flashy things that would make your showhouse really stand out on Sunday. And they might just be willing to trade the use of those nice For Sale banners and flags for some valuable info. (Just make sure that the banners and stuff are not emblazoned with the real estate agency emblem.)
This is just one of the ways I can think of, where private sellers and real estate agents can scrach each other's backs. Things like these are possible, but don't count on them. I don't know the real estate agents who operate in your area, after all!
