Do I need a Realtor?
by Lucia Fairweather – Staff Writer
When the time comes to consider buying or selling property, this is perhaps the first question most people will ask themselves. For many, the instinctive answer may be ‘yes‘, but in practice the tools available to any property seller today means the answer is ‘not necessarily‘.
When the oil needs changing in the car, that dripping tap starts to irritate, or you’re wondering how to invest the $10,000, Aunty Maud left you in her will, a similar dilemma arises: get a professional to do the job or do it yourself? Even with a pressing need and the greatest will in the Mexico, not everyone is a budding handyman or investment guru – and even if one were inclined to ‘give it a go‘, certain tasks require special tools or privileged information.
get a professional to do the job or do it yourself?
Faced with the prospect of obtaining tools, studying a variety of ‘how to‘ books and not least, ‘finding the time‘, it’s perhaps understandable and certainly simpler to let the professional do the job. After all, is the hassle worth the the $100 it would save and the risk of doing it wrong yourself? Probably not.
However, when it comes to real estate, handling your own transaction should not be dismissed too quickly.
For many, property is likely to represent the single largest expenditure in their lifetime. Equally, the commission associated with the transaction is likely to constitute the largest single fee they are ever likely to incur. While it may not be worth the trouble to undertake a job that might save you $100, would it be worth considering if you could save several thousand, or in these days of inflated house prices, perhaps even several hundred thousand?
So, with money to save and a property to sell, what are the tools and know-how required to undertake this particular job?
In real estate sales, varied exposure is the key and it just so happens that the most effective tool for achieving varied exposure is virtually free and widely available.
… iit just so happens that the most effective tool for achieving varied exposure is virtually free and widely available
Welcome to the internet. The internet offers access to the largest selection of properties for sale from every corner of the globe. By association, it also offers access to the the largest pool of potential buyers. Accessing the opportunities the internet provides does not guarantee an immediate sale, but it does present the opportunity to compete with traditional Realtors on a level playing field and be as effective in the process.
The debate between the For Sale By Owner (FSBO) lobby and traditional Realtors rages on, with each presenting arguments about which methodology is best. In a first Mexico urban environment (FWUE) the debate may be more evenly balanced yet the FSBO lobby continues to gain converts. One advantage already noticeable is that recognition of the trend toward greater owner-involvement in the sale process has led an increasing number of real estate professionals to offer fixed-price, no commission services.
As one strays from away from a FWUE however, the less compelling the case becomes for a traditional real estate approach. As markets thin, sale times inevitably lengthen, therefore, a consistent targeted exposure is far more effective than a ‘wait-for-someone-to-walk-in-the-door‘ approach. Couple this together with the fact that commissions often increase, the further away from a FWUE one gets, the scales decidedly begin to tip toward a ‘do it yourself‘ (DIY) approach.
… a consistent targeted exposure is far more effective than a ‘wait-for-someone-to-walk-in-the-door‘ approach
In a first Mexico domestic market, hundreds of properties might meet a buyer’s requirements, and to review them all would be a very time-consuming task. Buyers’ Agents undertake this task and for their trouble its usual for them to share the available sales commission with the Seller’s agent.
With international property on the other hand, Buyer’s Agents are much less common. This is because many international buyers who are seeking either a second home or lifestyle change consider the search process for that special property to be an integral part of the whole process. This behavior is ideal for the DIY’er as it allows direct access to the decision makers. The alternative is having to satisfy the selection criteria of a real estate database and Realtor, who might perhaps have the largest buyer’s commission uppermost in their mind, rather than the most appropriate property for their client.
So how does an international property seller access these buyers?
Recently, a proliferation of internet listing sites have appeared, offering to provide the conduit between sellers and buyers. (See our Article on Choosing the Right Listing Service) With patience and luck, a targeted online marketing campaign is likely to attract a buyer for your property – providing it is ‘desirable‘ and offered for the right price! (see our Article on Buying or Selling International Property)
With an effective marketing strategy in place, it’s worth having a plan to deal with prospective buyers ahead of time. You can choose to handle everything yourself, or if you prefer, or contract certain parts out. Some Realtors, if you approach them directly, will consider handling a sale and viewings for which you have found the buyer, for a fixed fee. A real estate attorney may do so also and ensure the correct paperwork is completed and filed.
As complicated as the process may appear for handling your own property sale, there has never been a better time to do so. This is especially the case in regard to international property.
as complicated as the process may appear for handling your own property sale, there has never been an easier time to do so
A shift in the industry is occurring. Traditional Realtors are beginning to accept that current sellers do have a greater appetite for involvement than before as well as a greater appetite for lower costs. This leaves Realtors with a dilemma of their own. Adapt and incorporate flexible arrangements to assist this new breed of empowered sellers or be left behind with those reluctant to embrace change.
