Another problem is much of the current inventory has issues; price, condition, location, affordability. This year, over 6,000 resale homes will sell through the real estate community. Current inventory based on those sales is about 2 months. Even without taking into account the “issues” of current inventory, there have never been fewer homes for buyers to select from. Maybe for sale by owner is worth exploration.
Record low inventory and strong demand fueled by the lowest interest rates in the history of the world and a season where strong historical buying kicks off in just 1 week.
So, with real estate so hot, do you even need a realtor? The answer is not straight forward, but with the money involved in selling a home, anyone who cares about their bottom line should be considering. The first question any seller better have an answer to is where are you going. Especially if you are planning on staying in the area. The odds are very high your house could sell very quickly and you better have somewhere to move already lined up.
With the median priced single family home in the area selling for $600,000, the real estate commission at 6% (yes some people are still paying that) is $36,000. At 5% it is $30,000 and even at the 4% that Paradise Sharks charges most clients in the Jupiter area, it’s $24,000. And that is without figuring the costs of state documentary stamps on the deed, owners title insurance policies, closing fees, estoppel fees, lien and title searches and all the other miscellaneous fees are added in. If one isn’t asking question’s about the cost and the service they receive for their hard earned money, then they can pay whatever they would like. It's America after all.
It's important to note that real estate commissions are 100% negotiable as are the services one receives for those fees. It’s why Paradise Sharks always recommends that anyone selling, or for that matter, buying real estate, interviews brokers and asks a lot of questions.
When houses in the right neighborhood, priced and marketed properly, hit the market these days they will not last long. Over 35% of all single family home sales in Jupiter over the last month sold in less than a week. The median sales price was $665,000. Real estate commissions dramatically effect a seller’s cash back at the closing table. Lots of money can be saved in a for sale by owner transaction of that there is no doubt. But what about the risks.
Besides digging into where one goes, the vast majority of sellers want to get the highest price at a timeline that meets their goals. They need help pricing the home properly. They need help staging and marketing the home. They need help getting potential buyers into the home. They need help negotiating, inspections, selecting the proper closing agent and all those little things needed before handing the keys to the new owner.
So, can an enterprising home owner sell their home without a Realtor and save a lot of money? The answer is absolutely yes but they might consider interviewing brokers and asking for ideas and help. Mistakes can be very expensive and most homeowners don’t have the knowledge or experience to avoid them. Paradise Sharks has been doing nothing but real estate for many years. We love to help others and more than anything we love to help them save money. We also love making sure they get a high level of service.
Our first real estate experience of any consequence was almost 40 years ago when we decided to sell our starter home. We knew the owner’s of the two real estate brokerages that controlled the market. We asked them to send their best agent for a home like ours in our neighborhood. Interest rates were at 18%, the market was tough. Both told us we should expect it to take at least six months to sell and that we would be lucky to get $45,000. Remember, this was in the early 1980’s in a small midwestern town.
We thanked them for their time, as neither sounded like they were going to help us meet our goals. I went down that afternoon to the local hardware store and bought a for sale by owner sign. Less than a month later I sat at the closing table with a sales price 20% higher than the experts told me I should expect to get. I sold it is a matter of days for $54,000 and paid nothing in commission. Perhaps I was a bit lucky but it taught me to ask questions and make educated decisions.
It was almost 30 years later and I had my license hung at one of the largest real estate brokerages in Jupiter. I was one of their top performers, we had over 200 agents and I was asked to teach a class on how to sell your client into signing a listing agreement for 7% or even 8%. It was at that moment I decided to open my own small “boutique” real estate brokerage and Paradise Sharks was born. The real estate business was no longer focused on the customer but on scripts taught in classrooms on how to sell the customer. We are just getting ready to start our 8th year providing quality customer service at values most of our competition can only dream about. We don't use scripts, we don't believe in them. We believe in listening to your problems and helping you solve them at a fair price. We don't sell, we educate.
So, is selling your home a realistic objective to save lots of money? Absolutely, but I would highly recommend aligning with a real estate broker to assist you. For instance, if all you need is someone to get your property marketed professionally with photographs and a description that will attract attention Paradise Sharks can typically do that for about $500. If you want us to get your home on the local Multiple Listing Services and all the online sites (realtor.com, zillow.com, trulia.com, redfin.com, etc.) we can do that for about $250.
Paradise Sharks looks at the real estate business a bit differently than most brokerages. We look closely at the time involved to properly represent our clients. It's not a percentage, is a realistic look at the time involved and how we can do things that provide a high quality service at a favorable price. We don’t live inside a big box, we think outside the box. Need help writing a contract? Call us. Need help selecting a closing agent who is going to give you great service and a fair price? Call us? Want to sell your house by yourself and need guidance? Call us. We don’t work for free but we take an honest look at what it will take to meet your goals. It’s not a percentage. It’s not about us, it’s about you.
If you are looking to help sell your home by yourself we are happy to help. Contact us anytime at firstname.lastname@example.org or 561.308.0175. Right now the local real estate market is red hot. Sales, especially at there top end, are off the chart. Season is coming. If you are thinking of selling, you are in the driver's seat. If you want to take the wheel and save a lot of money we would be happy to help you steer.