Pros and Cons of Selling “For Sale By Owner”
July 11, 2017
There are pros and cons of the for sale by owner method of selling a home.
It’s time to sell your home. The typical first step homeowners take when listing their home for sale is to find a reputable real estate agent to handle all the steps in the home selling process. A select few homeowners prefer the road less traveled and will decide to list their home “for sale by owner.”
This means that as the homeowner you will control the listing of your home and the transaction of the sale. Why would anyone want to handle this themselves? Well, it usually has a lot to do with not having to pay the typical real estate agent commission. Listing your home for sale by owner isn’t for the faint of heart and there are pros and cons to consider before counting on that extra cash.
Pro – You could make more money selling by owner. Con – It’s not easy.
Traditional real estate agents do take a percentage of the total sale price of your home. These costs cover their time, advertising efforts, showings, and the contract process related to completing the sale of your home. Homeowners that feel more comfortable handling the sale of their home independently may save some green by not using a real estate agent.
Going solo isn’t for the faint of heart, though. According to The National Association of Realtors, over 90 percent of owners listing their homes for sale by owner end up hiring a real estate agent. Because you’re not a licensed agent you may need to engage an attorney to assist with the contract aspect of the sale. And you’ll need to keep up on all the requirements of your sale, such as inspections and disclosures.
Pro – You get to control the sale of your home. Con – You don’t have a third-party opinion.
There’s something to be said for being in control. You can decide how you want to market your home, at what price you will sell it for, and how you will handle the negotiations. You’re in complete control when you list your home for sale by owner.
On the flip side, going it alone also means that you won’t have a third-party professional opinion. A real estate agent’s job is to understand the market and they will likely have more insight into appropriately pricing your home as well as the best target audience to market your home to.
Pro – There are plenty of ways to market your for sale by owner home. Con – Nothing replaces a great network.
In today’s social world placing targeted ads for and promoting your property online is easier than ever. Marketing your for sale by owner property can be done easily from your laptop in a moment’s time.
While it’s fairly easy to market your home yourself, a real estate agent has likely spent years building their network of other real estate agents, investors and past clients. Catching up in a few month’s time is highly unlikely. A licensed real estate agent also has access to the MLS, the database the majority of buyers depend on to find their next home. You may be behind the curve when it comes to getting your home out there for potential buyers to see.
Determining how you want to list your home is one of the most personal choices you make when selling your home. Even still, there are more options. Engage a property investor to purchase your home quickly and without the hassle of listing it. In this case, selling your home for sale by owner could be easier than you think!