Utah Real Estate #14: Did You Know? – Part 1

Posted by Patrick Wiscombe on June 28, 2012 under Utah Real Estate Podcast | Be the First to Comment

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In this edition of the Utah Real Estate Podcast, we talked about:

• Did you know your home will sell for more with a real estate agent?
• Did you know you’re too emotionally attached to your home?
• Did you know ‘For Sale By Owner’ sellers pay for all selling expenses?

Press the ‘PLAY’ button to listen to Utah Real Estate #14: Did You Know? Part 1

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YOUR CALL TO ACTION
If you’re looking to buy or sell a house in Utah, please call or text me (Patrick Wiscombe) at (801) 874-7717.
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Cool Voice Guy: Information you need, the podcasts you love, this is the Patrick Wiscombe.com podcast network.
Cool Voice Guy: It’s real estate news you can use, this is the Utah Real Estate podcast. Giving you free expert advice and tips if you’re looking to buy or sell a house. And now, here are your hosts, Roger Zundel and Patrick Wiscombe.

Patrick Wiscombe (sponsorship billboard): The Utah Real Estate podcast is brought to you by Weichert Realtors at the Rockies. If you are looking to buy or sell a house in Utah, please call Patrick Wiscombe at area code 801-602-5850. That number again, area code 801-602-5850.

Patrick Wiscombe: It’s the Utah Real Estate podcast. My name is
Patrick Wiscombe. Coming up on today’s edition of the Utah Real Estate podcast, yesterday and for the past day or two, we’ve talked about safety. We’ve talked about are you really prepared to sell your house on your own. Today, we have a ‘did you know’ section to the show. This is something new we haven’t done yet. Joining me for the podcast is Greg Hales, the Commercial Real Estate Manager at Weichert Realtors at the Rockies in the American Fork. Hi there.

Greg Hales: Good morning Patrick, how are you?

Patrick Wiscombe: I’m doing well. Let’s get into this. I’m going to throw out some stats and you back it up with your all-knowing wisdom if you would.

Greg Hales: The all-encompassing crystal ball.

Patrick Wiscombe: Yes, here we go. Did you know the median selling price with a real estate agent is 16% higher than when homes are sold directly by the owner? Did you know that? If you really break that down, with the commission and with the real estate agents expertise that’s a potential 5 – 9% net gain after commission when selling through a realtor. Most people probably didn’t know that their house will sell for more when the use a realtor. Why is that?

Greg Hales: You know that has always been a confusing concept in my mind of if you really think you’re going to sell it for more money on your own then using a professional, why would that be? If I’m looking for a deal, when I go to a garage sale or a flea market rather than Nordstrom’s or one of the department stores, why would I go someplace as a for sale by owner and pay more for it because I think the guy that’s selling on his lawn is not a professional. He’s not an expert so I think I can take advantage of him, as a buyer, I can get it for less. So sellers need to understand that your purpose in selling your home is sell it for the highest price available for the highest net back to you. When you consider that it is 15-16% higher, minus out a 6-7% commission, well on a 100,000 dollar home an additional 5% is 5,000 dollars. Believe me, I know places I can put an extra 5,000 dollars.

Patrick Wiscombe: It’s also a fact that owners will accept less if you try and sell your house on your own.

Greg Hales: Absolutely. From the Multiple Listing Service we find that the listing price, the sales price on a listing is based on between 95 and 97% of the listed value. Why would you consider if you’re listing your home for 200,000 dollars that you’re going to sell it for 200,000 dollars? You’re going to at least have a 3 to 5% discount based on market history and then going backwards, you’re a for sale by owner, I want to take advantage of you because you’re not as smart or you’re not an expert in the field like a realtor.

Patrick Wiscombe: And you’re emotionally attached to it.

Greg Hales: You’re absolutely emotionally attached and we’ve discussed this in previous podcasts is you’re selling a house, your buyer or you will make it a home. It’s a structure, and I’m not trying to be cold in that manner because we all love our homes. We love where we live. It’s a place where we love to go, but it’s still a home for us, for the next person he’s buying a house and he’s buying a structure so taking that emotion out allows us to negotiate more factually more than emotionally.

Patrick Wiscombe: Alright next one, did you know that owners pay for all advertising? That makes a lot of sense. You could pass that on to a realtor.

Greg Hales: Well again, a realtor is an independent business person. We have to pay for the flyers, advertising, MLS service, cards, signs, posters, open houses, gas, fuel, showing, everything and those are the costs borne by realtors so, in addition to selling a home for a higher price, you’re taking advantage of this network of marketing that a realtor has to pay for that comes directly out of their commission. You need to consider that in what you are going to net when you sell your home. If you’re bearing those costs yourself, you’ve got to figure out what the net number is.

Patrick Wiscombe: And then you’re shooting for a number that hopefully you can get to sell your house to cover those expenses.

Greg Hales: Absolutely. So you’re adding those back in already when your realtor is marketing to thousands of other realtors based on the Multiple Listing Service and networking that you don’t have access to.

Patrick Wiscombe: Alright we will go ahead and wrap it up there for this edition of the Utah Real Estate podcast. The first ever ‘did you know’ segment of the show, we’ll have part 2 coming up tomorrow right here on the Utah Real Estate podcast. So for Greg Hales, the Commercial Real Estate Manager at Weichert Realtors at the Rockies in American Fork, my name is Patrick Wiscombe and be sure to tell all your friends who are looking to buy or sell a piece of property within the state of Utah; you can contact me directly. My phone number is area code, and my text number by the way, phone number is area code 801-602-5850, 801-602-5850. So for Greg Hales, I’m Patrick Wiscombe thanks for listening, we’ll talk to you tomorrow, see you.

Cool Guy Voice: Helping you buy or sell a house, this has been the Utah Real Estate podcast, with your hosts Roger Zundel and Patrick Wiscombe, sponsored by Weichert Realtors, and heard exclusively on attherockies.com.