Sometimes it really does make sense to sell by owner. If you have ever had a real estate license or can receive free guidance from a Realtor, and if you need every dime from your sale, it might work well for you. Before you decide to try to sell by owner, review the reasons you think you should. Then talk to a Realtor to get their advice.
Pro: I can’t afford to use an agent. I will save money.
Con: You may not save as much as you think.
For example, the average sales price by owner in 2013 was $208,000 according to the National Association of Realtors homeowner survey. But the average sales price for a listed home was $235,000.
Even after paying a commission, homeowners who listed with a Realtor made more money on average.
So maybe, you really can’t afford NOT to use an agent.
Pro: I can pay a Buyer’s agent 3% to sell my home and save the other 3%.
Con: You will miss out on the full-service broad-spectrum marketing and the Seller Representation you could have had for just a little more
If you are already willing to pay 3%, the price of professional marketing may not be out of reach. Depending on your situation, a Realtor may be willing to list for 5% – so for just 2% more than you are willing to pay in commission, you will receive all the benefits of using a professional and you may very well make more money on the sale of your home. Recent studies show that whether you sell by Agent, or by Owner, the NET will likely be the same. WHY DO ALL THE WORK YOURSELF AND TAKE ALL THE LIABILITY, WHEN AN AGENT CAN DO IT FOR YOU WITH THE SAME NET RESULT?
Marketing, contract knowledge, negotiating skill, legal protection and overall guidance are usually well worth the additional 2-3% fee.
Pro: I can market my home myself just as well as an agent
Con: You really can’t market your home as well as an agent
Professional Realtors sell hundreds of homes in their careers and are home marketing experts with other professionals in the industry just a phone call away.
Any internet comparison between a typical for sale by owner home and one listed with a high-quality, professional Realtor will reveal the benefits of professional marketing. From the quality and number of photos to the marketing venues and tools to bring buyers in and keep them to the number of times a home is seen and shown, Realtor listed homes have a clear advantage.
Leave the marketing to the experts.
Pro: Selling by owner is easy! The title company does everything for you!
Con: Selling a home by owner is exhausting. Plus it’s not just about paperwork – it’s about getting the best deal for YOU
- Do you know the real market value of your home? Sellers often undercut their price too much.
- Do you know what buyers want today and how to bring that out in your home? Home sellers often do not see their home objectively, and can make key marketing mistakes.
- Do you know what changes you should make to sell for the highest maximum dollar value?
- Are you prepared to be present when your home is shown? Do you know who you are bringing into your home? Are they safe?
- Is the buyer qualified to buy? Can they buy or do they just like looking at houses? Do you know how to prove they are qualified and what you can ask for to qualify them?
- What are the buyer’s rights and obligations? What are your rights and obligations? What is normal or not normal in a transaction? What if there is a dispute that cannot be resolved?
- Do you know how to protect yourself to make sure you are not unwittingly setting yourself up for a lawsuit?
We at The Beitzel Team believe everyone should be professionally represented.