Happy Tuesday and welcome to today’s show with Dan Polimino!
Dan discusses the legal work involved with selling your own home, the benefits of using a realtor, and the story on discounted brokerage services.
All reported sales were not necessarily listed or sold by the broker and are intended only to show trends in the area or shall separately identify the broker’s own sales activity.
00:01 Hi everyone and welcome to today’s show of Ask the Colorado Dream House Team! I'm your host Dan Polimino coming to you live from Denver Colorado on this sunny Tuesday. Yeah we had some snow over the weekend. So if you're a skier and you're thinking about coming out to Colorado now is a great time. Lots of good skiing. Everyone's got a pretty good solid. Base. The ski resorts are in full swing so head on out to Colorado and while you're here maybe you'll look at a house or two could be. You never know. Well welcome. If this is your first time to the show Ask the Colorado Dream House team is everything about real estate. We answer your questions about buying selling or investing in real estate. And of course if we can help you feel free to contact us. The Colorado Dreamhouse team you can e-mail us call us or you can leave a comment right here on Facebook.
00:50 Two things we'd like to accomplish each show we like to give you some news you can use information about the market and real estate in general and you can use this information no matter where you live in the country. And we'd like to answer your questions.
01:03 Well this week I got a comment online that was or a question online that really is going to encompass today's show and it was a woman who was thinking about selling her home and she had a question she said. Can anyone tell me the pros and cons of selling my home myself.
01:25 Using a realtor or using a discounted real estate service. Great question. Well thought out and one that I don't get a lot. When
01:34 they ask about all three and I thought this is going to make for a perfect segment on Ask the Colorado Dreamhouse team. So let's let's have at it let's go at it and see if we can give her some pros and cons. Well the pro obviously of selling your house on your own is that you're going to save some money. All
01:52 right that's always been the hook is that if I sell this on my own I'm going to save some money. Now what's the well the biggest con that I see in being a brokerage owner.
02:03 Is that I always hear about the bad stuff as being an owner. Right. We deal with lawyers. We talk with lawyers a lot. Lawyers tell me that 60 to 70 maybe 80 percent of all of the real estate lawsuits always involve. One party not being represented in the transaction which is a perfect for sale by owner case right the For Sale By Owner is not represented. The buyer has an agent and is represented that scenario right there encompasses the majority of real estate losses. Why. Well the seller doesn't have anyone representing their interests and they don't know all of the ins and outs in the details and the law.
02:47 And they may not be intentionally trying to make a mistake but they do. And that's where the lawsuits come into place. You're putting yourself in serious legal jeopardy. There's
02:58 about a hundred or more pages of documents to know intimately in the real estate transaction from start to finish. I don't know about you but I'm not signing my name to a legal document of a hundred pages or more than I don't know intimately backwards and forwards. So that's the major con that I see. How about if she uses a realtor what are the pros and cons. Well the con is it's going to cost you some money. All right. The pro is that now you've got somebody passionately representing your best interests and if it's in the case of us like the Colorado Dreamhouse team I actually addressed this last week. We more than more than not pay for ourselves. So we're getting people somewhere in the neighborhood of a 6 7 8 percent higher price than they would on their own or with our competition. And since rurally charging somewhere between 4 to 6 percent.
04:00 It sounds like we've paid for ourselves. And you made money on top of that. And then there's things like inspection. Right. How much money are we going to potentially save you when it comes to negotiating the inspection items again more often than not we pay for ourselves and that might be a pro to use a realtor. Last but not least using a discounted service. What are the pros and the cons. Well the pros are obviously you're going to save some money. Somebody is going to charge you a flat fee of a thousand dollars or twenty five hundred or whatever it may be the cons are well like my dad always told me you know it's an old saying but it's true. You get what you pay for and discount brokerages. They're just really not all that successful. In most cases in the best case scenario they're going to capture around 4 percent of the market a discount brokerage.
05:00 So if we use the numbers in Colorado there were 66000 homes sold last year if they capture 4 percent of the market. That meant they sold 2500 homes. Do you really want to hire a discounted realtor or brokerage firm. And have those type odds. Twenty five hundred sixty six thousand. Have the odds more in your favor. All right. Just a couple of thoughts. I hope this helps for all of those people in the exact same position trying to think about what they're going to do this spring. If they put their house up on the market are they going to sell it themselves or are they going to use a professional team like us the Colorado Dreamhouse team that sells about 100 homes a year or are they going to use a discounted brokerage firms.
05:44 I hope we've given you some pros and cons on both. Well that's today's show. I thought that really covered the gamut. I hope it helps you and we're back again on Thursday. Keep the questions coming. In the meantime if we can help you in any way contact us at the Colorado dream house. Everybody have a good Tuesday. We'll see if those two.