We all want to save money. If we can do it on our own, we do not have to pay for services that we don’t need in the first place.
When it comes to real estate transaction, you have 2 options to do it:
1. Sell it on your own;
2. Sell it with the help of a Professional Real Estate Broker.
If you sell the property on your own, what are the advantages?
1. You save on commissions. Commission rates range from 3% to 5% of the Total Purchase price and that’s a lot of money so some property owners would rather do this if they can.
2. If you have a ready buyer like your relatives or friends who have been eyeing your property and telling you their interest on it for a long time, then having a sure buyer is a breeze. And because your natural market made life easier for you, you might be tempted to give your buyer a bigger discount! Well, in practice, giving bigger discounts to your natural market comes with the territory.
1. Where do you find your buyers?
By knowing where to find them, you have already won half of the battle. You just have to fill in their need or real estate requirement. Take note, however that in some cases, buyers broadcast their requirements through brokers and agents so you might have to go through them to get to the buyer.
2. Do you have the time?
If you are working or you own your own business, do you have the time to accompany your buyer to the site to inspect the property. You may also have to sit down and discuss with the buyer the terms and conditions relating to the transaction. These alone will eat up your time esp. if the buyer requests the meeting date on his own terms. And take note, meetings between two parties are not usually done in one sitting.
3. Do you know the market value of the property?
Sometimes, selling price is a judgment call. It may be based on sentimental reasons or it may be urgent for personal reasons. Either way, you may be selling the property too high or too low. But with the help of a real estate professional, he or she will give you a proper appraisal of the property to help you decide on a reasonable price or what we call a fair market value. That way, your property will have greater chances of being sold.
4. Do you know how to negotiate?
Selling a real estate property involves a lot of negotiation. Hiring a real estate professional will save you from a lot of stress esp. if you don’t know how to negotiate. There are situations when sellers and buyers do not agree when they deal with each other but when you put a broker in between them, the negotiation becomes manageable or even smooth because the broker can handle the series of offers and counter offers including the intangibles (like dealing with different personalities!) until a mutually acceptable price and terms have been reached between both parties.
5. Do you know the process and the legal aspects of the transaction?
A real estate transaction involves a lot of legal documentation and ultimately transfer of title. While the burden is placed usually on the buyer when it comes to title transfer after payment has been made, the seller would have to be knowledgeable on the taxes involved, the legal processes to be made until a deal has been consummated with the buyer. Not knowing this critical stage in the transaction maybe risky and worse, it may cause the seller legal problems, if not checked.
If the seller is not knowledgeable in these things, it would be wise for the seller to seek the advice of a real estate professional or a legal counsel. That means, the seller has no choice but to spend on professional fees.
In the Philippines, not all real estate brokers do the “dirty work” or the nitty gritty aspect of the transaction. Some will take on the marketing and selling aspect of the job but will outsource them to the more knowledgeable or expert ones esp when it comes to dealing with different government agencies, some of whom have already established a familiarity so transaction can be done at a faster pace than what is considered normal. It might be prudent to deal with only one reliable broker and agree on a package deal and let the broker take care of the legwork, whether it’s outsourced or not.
Rather than saving up on commissions, look at the bigger picture. Due diligence is also required in selling your property.