Selling your house yourself?

Robert Landry, Real Estate Broker (Residential and Commercial)

Selling your home yourself without the intermediary of a broker may seem attractive and several platforms exist to do so.

The first argument is usually the appeal of being able to save on a fee. Beyond that, the operation may also seem interesting to experiment with technologies, carry out appropriate research, meet interesting people.

However, this approach involves several risks that can have significant financial, legal and practical consequences.

1. Incorrect evaluation of the property

There is indeed a risk of under- or over-evaluating the house. Under-evaluation could cause a significant financial loss – more serious than the cost of the compensation that was thought to be saved. While an over-evaluation could have the effect of prolonging the marketing, repelling serious buyers, and past a certain point, what is called “burning” the property on the market: a property too long on the market raises questions, especially in a market where a sale would be expected within a certain period of time. The broker will use detailed comparable analyses in order to establish a price (or a range) that is competitive.

2. Lack of visibility and marketing

The capacity of existing platforms does not have the same scope to attract qualified buyers. On this point, having your property on the platforms used by professionals will allow thousands of brokers to have access to the property data. This is in addition to the advertising campaigns and contacts that the broker can make in parallel.

3. Legal and contractual errors

Forgetting important clauses or misunderstanding legal obligations can lead to disputes, delays in the transaction, or unforeseen or unanticipated costs. A broker will ensure that all documents and contracts comply with the laws and protect the interests of the seller whose interests he represents.

4. Difficulty in managing negotiations

Do not underestimate the importance and experience of negotiating effectively, which can lead to accepting a promise to purchase that is too low, conceding perilous conditions, or losing a potential buyer. Good negotiation skills will help you get the best price and the best possible conditions. Knowing how to balance the seller's interests without losing the buyer is an art.

5. Security risks

Welcoming strangers into your home, without prior verification, without qualification, can not only be a waste of time, but also pose a risk to the seller and their property. A broker working with buyers (whether it is your listing broker or a collaborating broker) makes sure to disturb you to the extent that firstly a buyer has at least the basic qualifications, and in many cases, is prequalified by a financial institution. The visits are therefore relevant and secure. It is in your best interest, but also in the best interest of a broker, to have previously qualified his or her buyers, since a broker is paid on results and not on the number of visits he or she makes.

6. Waste of time and resources

Managing visits, answering questions, as well as filtering buyers can be very time-consuming and cause constant stress. The broker takes care of these important elements, so that you can continue with your daily priorities.

7. Difficulty managing the unexpected

Good management of competing promises is necessary, as is everything that follows: inspection, financing and fulfillment of the various conditions. Unforeseen events can often occur, and the network of professionals surrounding the broker or his agency can be called upon quickly to prevent a transaction from falling through. Of course, not everything can be avoided, but good planning will generally help anticipate problems and resolve them before they arise.

In conclusion, although it may be attractive at first to be able to save on a broker's fee, keep in mind that this fee will only exist if the objective is achieved: the sale of your property.

The savings that dangle at the idea of ​​selling yourself without an intermediary can end up costing more than the value of the fee you wanted to avoid in the first place, with the legal, financial and even your own time risks. The real estate broker brings expertise, security, visibility, the strength of an entire network and peace of mind. If errors or omissions are not 100% avoidable, the broker also offers you insurance in this sense, with the FARCIQ.

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