Are you planning to sell your home? If you are, you might be wondering whether you need to hire a real estate agent or if you’d be better off going it alone.
We get this question a lot from our members at Addition Financial, and we think it’s a worthwhile question to ask. There are pros and cons to deciding to sell your own home. In this post, we’ll look at both to help you decide which option is best for you.
The Pros of Selling Your Own Home
Let’s start by looking at some of the pros of selling your own home. FSBO sales (that’s For Sale By Owner) definitely have some advantages for the seller.
You’ll Save Money on Commissions
Most people who sell their own homes do it because they want to save money. Since real estate agents can charge as much as 6% in commission, the savings can be substantial. Agents may tell you they’ll get a higher asking price, but they may be getting most of that money.
Depending on the price of your home, you could save anywhere from several thousand to tens of thousands of dollars by handling the sale yourself.
You’ll Have Control of the Sale
The next benefit of selling your own home is you’ll have complete control over the sale of your home. You can decide how much to ask for it, when to show it and how to show it. You’ll also be free of pressure to accept an offer you don’t like.
You’ll also be able to decide how and where to advertise your home and what signs to place in your yard. For some owners, having this type of control is a big plus.
You’ll Be Your Only Client
One of the biggest complaints homeowners have about working with real estate agents is they’re not always available. If you’re working with a successful and experienced agent, some of their time will be spent attending to other clients.
By contrast, when you sell your own home, you can dedicate as much time as you want to the sale of your home. You can have showings whenever you want to and talk to buyers whenever they call or email you.
For some owners, these pros are very attractive arguments in favor of doing the work themselves. However, we think it’s important to look at it from the other side, too.
The Cons of Selling Your Own Home
The pros of selling your own home can be significant, but there are some downsides, too. Here are some cons to consider before you make a commitment to be a FSBO.
The Financial Advantages Might Not Be as Big as You Think
When you sell your own home, you’ll have to hire an appraiser and decide how much to ask for it. An experienced real estate agent will know your area, including how much other homes have sold for and what a fair market value is for your home.
Many FSBOs end up setting the price for their homes too low or too high. They also don’t typically get multiple offers the way they would with an agent advertising their home to potential buyers.
Advertising Your Home Can Be a Challenge
When a real estate agent lists a property for sale, they have access to the MLS – that’s the Multiple Listing Service used by agents. They’ll also be able to get it listed on sites like Realtor.com where homebuyers go to find homes for sale in their area.
As a homeowner, you might have a hard time spreading the word about your home. The one exception is if you have marketing experience or live on a very busy street with a lot of traffic. Then, placing signs in your yard may attract a lot of buyers.
Selling Your Own Home is Hard Work
The final con is one that a lot of homeowners don’t properly consider before deciding to sell their home without a real estate agent. The truth is that real estate agents earn their commissions by doing the legwork for you.
If you’re working full time, you might get home from work exhausted. The thought of responding to dozens of emails and returning phone calls – or showing your home at the last minute – might not be very appealing. Selling a home will cut into your free and family time. It’s important to take that into consideration.
Depending on your personal situation, these cons may not dissuade you – or they may convince you that hiring an experienced real estate agent is the way to go.
Selling your own home is not a decision to be made lightly. We hope this list of pros and cons will help you make the best decision for you and your family.
At Addition Financial, we have flexible mortgage options and assistance for new and experienced homebuyers. To learn more, please click here.
Posted on May 8, 2018
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