Just yesterday I found attached to the door of my Washington Park home a flyer from a private party asking if I would like to sell my home directly to him and I will receive “fair market value“. I’m sure homeowners in desirable neighborhoods receive this type of solicitation on a regular basis.
But does selling directly to a private party with no broker or commissions provide the owner with the best (highest) bottom line? First, let’s talk about “bottom line”. There are many factors that determine what you receive after closing costs and commissions. Many sellers assume that if they can avoid paying a commission or even if they can choose an agent who offers a steep discount, that they will walk away from the closing with more money.
One of the statements in the flyer I received is so true: “The market is at a peak, there is no better time to sell your home“. Yet this is why you may not see the best “bottom line” by selling directly to a private party, neighbor, friend or builder. The fair market value may appear to be $X,000, based on the sales around your home. But if you list your home for sale on the open market, and you list with a broker who knows how to set up an “auction” environment via the Multiple Listing Service and other marketing avenues, you will very likely see the price of your home bid up way past the “market value” based on recent sales.
It’s a very competitive market out there, buyers are rabid to find a good house and many have lost out on several bidding wars. They are well qualified, ready to pay over asking price, and willing to agree to whatever timing the seller requests (closing date, lease back, etc.) in order to secure the home. You, the homeowner, will reap the benefit of this if you hire a broker who knows how to expose the home to many people – both real estate agents with buyers and directly to buyers to set up the “auction” atmosphere. Additionally that broker needs to know how to handle the multiple offer scenario to obtain the very highest price for the seller. That higher price is what translates to a better, higher “bottom line”. Besides obtaining the best bottom line, the transaction will be less stressful with less pitfalls when you have an experience agent at the helm.
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Want to find out more about selling your home in the current Denver real estate market? Contact Laurie:
RE/MAX of Cherry Creek