To know when selling a property by yourself
A bidding war is unlikely: When you do it yourself, it is difficult to get a fair price is for your property. Bidding wars are the norm in the GTA and other parts of Ontario. In virtually all cases, the property is sold by a real estate agent. The reason is that it takes experience to price the property properly. Second, the process is fair because no one knows what anyone else is bidding. With a private seller, there is no duty of confidentiality, so the seller can tell one buyer what another buyer is bidding. Buyers do not trust the process so there is no bidding war.
You negotiate on your own: When you do it yourself, it is difficult to know what a fair price is for yourproperty. Even you believe the property value but you are not easy let the buyer to trust it.
When a buyer hears that you are saving commission: They will want to split the savings too. So you don’t get all the commission savings and you also have to negotiate with a buyer who is likely represented by a real estate agent. This agent will use all their experience to figure out how low you will go, while giving nothing away about their own buyer.
Not knowing your obligations: Sellers cannot rely on the term “Buyer Beware.” You have to disclose problems with your property and you cannot hide or cover up anything. Otherwise, you can still be sued after closing. Who wants a court fight long after you move?
Lenders are more cautious when they see a private deal: I have seen deals collapse this way. In one case, the lender sent their own appraiser because they were concerned the buyer paid too much money if the property will not sell by an agent of MLS. The appraiser agreed and the buyer’s loan commitment was cancelled. The deal died. In another case, the seller was worried the buyers did not have proper financing. They wanted more proof about the buyer’s financial situation than the buyer was willing to give. But when buyers are represented by agents, they are usually pre-qualified in advance so the seller can have comfort that they will have the money available to close the deal on time.
By all means, try and sell your house on your own, just beware that it’s not as easy as it looks.