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Agent
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Private
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Commission :
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Selling a home with an agent costs approximately 5% + GST. 5% of your home’s value usually ends up costing the home owner $15,000 - $20,000. But is that 5% the correct amount? What percentage does using an agent really equal when you compare that to your actual home equity (ie - without your mortgage). Let’s do some more real estate math.
Your home is worth $400,000
Your mortgage is $250,000
Your equity is $150,000
So if you sell your home with an agent at 5% commission, you will need to pay $21,000 in commission and GST.
Now you have $379,000 from the sale of your home, but you need to pay back your mortgage of $250,000. So the amount of money that you have in your pocket is $129,000. How much did that agent cost you? What was the actual commission rate? You actually paid more than 14% of your own money in commissions ($21,000 / $150,000). |
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Selling privately you pays 0% commission you now have the choice to sell your home and keep $150,000 instead of selling your home with an agent and keeping only $129,000. |
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Advertising focus :
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With an agent, a large part of their promotional focus is on "themselves" instead of on your property. It's no wonder they often hold back important information about your property; like price, address and property details. This is not the best way to market your home. Today's home buyers want instant access to property information without needing to call your agent. When agents don't provide enough information, it forces eager buyers to visit your home, even when they find themselves not interested when they arrive. This is a pure waste of everyone's time. |
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Our advertising approach is to supply all relevant information to buyers, making it easy for them to consider your property. Most buyers would rather examine property particulars prior to contacting someone. Providing easy and open access to complete property details saves buyers time and frustration. Typically, this creates a situation where only really interested buyers contact you and visit your home; saving you time and energy. |
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Your asking
price for the
property :
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Agents help establish your asking price by examining past property sales data and by analyzing the existing supply of available properties in the market that they judge to be similar to yours. Most agree that this is hardly rocket science. Since an agent's compensation is based on your sale, they often find themselves in a conflict of interest with respect to price. |
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You don't need an agent to set your price, you've got better ways. We believe that pricing is all about "supply and demand" and very little to do with an agents' foresight. While we don't set the actual sale price for you, we'll introduce you to other proven methods that will help you set your own asking price. Since there is no commission charged on a private sale, all possible conflicts of interest are instantly removed. |
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Market Exposure :
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You can get the exposure provided by their system. With this system, cooperating agents are able to search for your property in hopes that it will fit the search criteria of their clients. The general public also uses their system as a key source for searching available properties for sale. |
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Yes, the agent system can be an effective solution. Surprised we'd say that? Well, we're not the ones with our heads in the sand. The question shouldn't be whether or not their system provides good exposure but rather "why do I need to use their system?" it costs way too much. We're an effective and low cost alternative to their system. Our system provides you with a level of exposure that we believe can eliminate the very need for using an agent. Our web site gets millions of hits a month and we send automated notifications to buyers looking for homes all across the country. By the way, agents also use our web site to find available properties for their customers. |
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Property Showings :
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Agents arrange property showings based on their schedule - not yours. When you choose to use an agent your home must always be 'show-ready' with very little advanced notice. Not surprisingly, many sellers find this situation to be a serious hassle. And to make the situation worse, the agents that show your home are rarely the ones you actually listed with. What do they know about your property? Not much. |
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In our system, you arrange showings based on your schedule - not some agents schedule. This means that your home needs only to be 'show-ready' when you need it to be. Most buyers, given the opportunity, would rather get a tour from the home owner than seeing it through an agent. |
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Dealing with offers and negotiations :
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Your agent will help you with the paperwork and review the offers submitted through different agents, acting as an expensive go between for people not so comfortable with negotiating. Agents seem to make this process look more complicated than it really is - probably to justify their hefty commission. Your agent will help you decide whether to accept, reject or counter the offers you receive. |
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We have made the process straightforward and stress free. Absolutely no agent required. After all, you know what the right offer looks like. We provide you with the framework so you can effectively deal directly with the buyer. You may choose to do it online or in person - whatever you prefer. With fewer people involved in the process, the less complicated it can be. |
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Closing the deal :
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In an agent transaction, the lawyer handles all the legal closing details once they've been forwarded the paperwork from the agent. Usually your decisions and concessions are already binding before the lawyer actually advises you. This reality opens up the door to possible conflicts of interest on the part of your agent. |
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We streamline the process. Again, no agent needed. You and your lawyer are well able to handle the sale at this point. This way, you are better protected from any legal pitfalls and are insulated from any possible conflicts of interest. |
www.privatesalebyowner.net
