Do you plan to sell your Mississauga condo within 3 months time? Do you own a privately listed condo and the results are not as you thought they will be? If your answers are yes and yes, I believe this article is for you.
Selling your Condo privately
FSBO is abbreviated as “For Sale by Owner”; these are the people who take on the tedious job of selling their property themselves. I have huge respect for such people who takes responsibility of doing such a complex job. They do not want to work with an agent for various reasons but mainly because working themselves do not make them pay the high commission fees. Although if a seller is working with a realtor, they must know what exactly they should pay to the agents, they will need to pay around 1 to 3% to the listing agent and around 2.5% to the buyer’s agent. No more, no less.
Selling your condo yourself sounds easier but it is not an easy task to do. It’s not just putting a $15 Kijiji Ad or a $299 listing on MLS and then wait for buyers to contact you, it is actually much more than that. As a seller you need to price it correctly, figure out who is going to be your target audience, to build a marketing plan, showing booking status, finding buyers, researching details about buyers, to answer legal questions by people who are interested, doing negotiation of the price and most importantly understanding the legal terms and condition.
Over 93% of condo owners sell their condo by hiring a realtor, among the remaining who choose to sell their condos themselves, only succeeds if they have previous experiences and have mastered all the things mentioned above. Moreover, it is no surprise that more than 75% of the private sellers end up hiring a realtor for they do not succeed in selling their property profitably and at times, they just could not sell their property to anybody.
Why your Condo is not selling privately
If you follow the Mississauga condo blog, you must have read some of my previous contents about the same question. The main reason being the pricing; seller quotes a price for their condo according to what they think, the worth of it is and by doing a little comparison with other condos of the same region. But Pricing a Condo is a little more complicated than that. When the pricing is done by a professional realtor, he not only compares it with other contemporary condos in the area but also does the comparison with the condos sold in the past and properties which have expired. A list carrying the rates at which previous properties and condos were sold out provide a rough idea of what a buyer usually pays for a condo like yours. Thus finalizing the perfect price for your condo should be the number one priority for a private seller.
As many say, the co-operating broker commission is as important as the listing price. This is the commission paid to the agent who brings up a buyer to your property. Since potential buyers hire their own realtors, a seller should pay compensation to a realtor who is bringing Potential buyers to their property. Over 95% of properties listed in the website www.realtor.ca pay a 2.5% co-operating broker commission. However, the properties which are listed on this website and the owners are not willing to pay the broker commission are known to have less impressions on the website. Thus it gives lesser exposure to the buyers and it ultimately sell for a much lower price than what the sellers might have anticipated.
Another reason the condo is not sold by a private seller is lack of a Marketing Plan. Putting photos of your property by professionals and doing a MLS listing now days is common enough. A buyer can be anywhere and only a realtor knows how to reach that buyer. So, he prepares a Marketing Plan and targets the specific audience who are more likely to buy your property. A condo rightly exposed can be sold at a higher price.
Buying a Condo Privately
There is a perception among condo buyers that since a property is being sold directly by the seller, it is a better property because the seller is not paying any commission to the realtor. However, it’s nothing but a myth, not to be taken seriously. The FSBO list contains properties to be sold privately. Now if a buyer is also looking for a private property, so as to avoid paying commission to their realtor, means both the seller and buyer is looking for an extremely profitable and cheap deal. This can make the negotiation pretty challenging, since we talked above that private sellers always price their properties at a rather higher rate than usual. So, in such a case, all one can expect is a failed deal.
When a buyer hires a realtor, 99.9% times, he doesn’t have to pay even a penny extra to the realtor. Moreover, the buyers get free professional advice regarding real estate. A realtor makes sure that the whole deal execute in a way that the buyer will get the most out of it.
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Toronto Real Estate Board - IDX Last Updated: 3/21/2019 8:50:51 AM