Things Homeowners Should Consider When They Plan to Sell Their Home on Their Own

1) A Bidding War is Unlikely

In the Toronto and surrounding areas, bidding wars are the norm. In almost all cases, the home is sold by a real estate sales professional. It takes experience and knowledge to price a home properly and the process is fair because no one knows what anyone else is bidding.

Duty of confidentiality does not exist with a private seller, so the seller may tell one buyer what another buyer is bidding. Buyers do not trust this process so there is no bidding war.

2) Private Seller Negotiates On Their Own

When homeowners try to sell on their own, it is difficult to come up with a fair price for their home. Sometimes, they may need to pay an appraiser to evaluate their home.

When a buyer learns that the homeowner is saving commission, they want want to split the savings. This means that the private seller(s) do not save all of the commission and they also have to negotiate with a buyer who is likely represented by a real estate sales professional.

3) Lenders Are More Cautious

Lenders are more cautious when they see a private deal. In one particular case, the lender sent their own appraiser to evaluate a home because there were concerns that the buyer paid too much money.The appraiser agreed and the buyer’s loan commitment was cancelled. The deal did not go through.

When buyers are represented by real estate sales professionals, 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.

4) Unaware of Obligations

Sellers must disclose problems in their home and cannot hide anything. Otherwise, they may be sued after closing. Sellers cannot rely on the term "Buyer Beware."

Reference: Mark Weisleder, a Toronto Real Estate Lawyer