For Sale by Owner
June 28, 2017
Many people selling their homes nowadays may wonder If it would be better to hire an agent to list it. Others would better prefer to sell their own home. Of course, there are advantages and disadvantages for either so we compiled a list of key points to consider when deciding which way will be the best.
Points to Consider:
Time is Money and Money is Time
You would not have to pay commission costs (Saving around $2,000 and up depending on the value of the home)
Selling your own home can be time consuming. If you don't have much time/resources to sacrifice, selling a home on your own accord could potentially be more costly.
Buyers working with an Agent
Just because you don't decide to have a listing agent, does not mean there are no commission costs to be expected. When potential buyers have an agent, it is to be expected that you will pay the agent's commission. If you're not wanting to pay this cost, you'll have to wait for a new buyer or negotiate what percentage you'd pay.
Assessing a Valuable Offer
While this brings forth a "middleman", when a realtor is involved, negotiation between your agent and the buyer's agent about the offer in regards to sales price is determined. If you're not confident in differentiating between a good offer and/or valuable proposal, versus ones that are not, this could become a difficult process on your own.
Price it Right
A realtor can possibly earn you more for the sale than what you would selling on your own. They have access to MLS information that you unfortunately do not, and this information can affect the listing price. In addition, many people who decide to sell their homes have such an emotional sentiment to it, that they price it too high, thinking it's much higher in value.
For agents who are part of the National Association of Realtors (NAR), they have to abide by a code of ethics. This will ensure that all parties partaking in the business transaction are dealt with utmost honesty. Agents are required to be truthful and give critical feedback to their clients, such as problems with the property.
The seller's advantage is that they may not be so critical of their own property when listing.
High Stake Game
You wouldn't prescribe a person medication if you weren't a doctor, would you? The answer is no; so selling your own home without a realtor can be troublesome? Your home is a huge portion of your wealth. It is a high-risk business transaction. Giving the responsibility to a professional who specializes in this field may be worth every penny.
From the potential buyer's' standpoint, this is potentially the largest purchase (price wise) they'll make in their entire life. The next time you are selling your home consider all the pros/cons and research the decision that best fits your situation.Whether you are choosing a reliable realtor or selling your own home research is essential to a successfully sold home.