Is it a Good Idea to Sell Your Home Yourself? Are you thinking of giving this a try? Have you been thinking of selling yourself instead of hiring a real estate agent? There are several advantages to selling your home yourself, but there are disadvantages as well. We certainly don't want to put someone off from trying to sell themselves, we believe that it can be done if you equip yourself with the right information, expectations and plan. Equipping oneself with the right expectations involves being aware of the pitfalls as well as the benefits. Here are a few things to consider when making the decision whether to go FSBO (for sale by owner).
1. The most important PRO for selling your home yourself is MONEY. Selling your home without the help of an agent means more money in your pocket! By selling it yourself you save the commissions and fees. We are not talking about small change here, we are talking about THOUSANDS of dollars which you would have to pay an agent. Commissions vary by market, but most agents ask for 6% (this is of course negotiable). If you are selling in a high priced market that is a considerable expense.
2. Saving on commissions allows you to price your property at a discount to other properties. The buyer sees an attractive price, yet you as the seller still end up with more in your pocket than if you had got a higher price and sold through an agent. We feel that this is an overlooked aspect of the FSBO process. There is no doubt that through the MLS and agent networks real estate agents have a large advantage when marketing a home. As a seller you certainly can utilize FSBO services and magazines, but they will most likely not have anywhere near the market penetration that an agent can get. Using the commission savings to price your house at an attractive level helps level this. Buyers will notice a well priced house!
3. Another advantage is that you are able to decide the times for open houses and showings. It is also completely up to you where and when you want to advertise.
4. Unlike a real estate agent who is selling many houses, you can focus on YOUR house, because you are only selling your own house.
But as mentioned above there are also disadvantages to selling your house yourself:
1. Good real estate agents earn high commissions for a reason. Selling a home takes a lot of time and energy. Dealing with potential buyers, open houses, closing sales and of course dealing with legal issues. Real estate agents are familiar with all the above and their experience can impact the sale.
2. You will not have access to the networks and listing services that a real estate agent will have.
3. People can call at anytime to see your house. Many of these people will be tire kickers. Will you drop everything to make a showing? This aspect of selling a home can quickly become tiresome.
4. Are you comfortable negotiating deals? If you are dealing with an aggressive buyer are you confident you can negotiate the points you need without jeapordizing the deal? There is no guarantee that a real estate agent can do this, but a good agent will have experience negotiating these contracts and closing deals.
Selling your home is, in our opinion, completely possible, but it is a challenge. This challenge excites some people, and if you are willing to learn and plan the process through then with some know-how and energy you can sell your house without the help of a real estate agent and save thousands.
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