Perhaps you are thinking of selling your home privately.
Perhaps you have a relative or a neighbour that wants to buy your home?
Or perhaps as often happens, especially when the market is hot, you find a potential buyer after placing a sign on the lawn, or you ran a Kijijji advertisement?
Before you get too far, please consider the value of engaging with a good REALTOR® and their ability to take your home to the Open Market. Why?
If your goal is to get top dollar, you must go to the Open Market.
1. Your home will be exposed to ALL buyers
Not advertising the home for sale properly and for sufficient time, puts you at distinct a disadvantage and almost guarantees you will not get full market value. Only through the participation of all buyers, managed via a thorough marketing process, ensures that the best outcome will be achieved.
2. You have more control
If you only have one buyer, the buyer has a high level of control and leverage over the negotiations. Introduce other buyers and you have far more leverage. Buyers will realise that if they are potentially competing, they had better bring their A game to the party and offer you their maximum price.
3. You are guaranteed full market value
The Canadian Institute of Appraisers describes market value as follows:
"The most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.”
Not being on the Open Market prohibits you from meeting the above criteria.
4. You will likely sell faster or on your terms
One buyer can pay you when they see fit. The open market will bring you buyers that are ready to purchase immediately, or on your timeline.
5. Your actions will be above recourse
The open market is efficient and transparent. In the case of an estate sale, or perhaps a divorce, you may need to show due process. Offering the home to only one buyer, may leave you open to accusations of favoritism, or even negligence, especially when there are multiple stake holders in the background.
In conclusion, even if a buyer has stepped forward, its usually in your best interests to have them compete for the opportunity to purchase.
And one last suggestion.
Getting the home professionally appraised may also be prudent, although this too has pitfalls. Click this link for more information 5 Limitations of Real Estate Appraisals
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®.
Want more information about our transparent & affordable full service FLAT FEE home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca
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