It might be tempting to sell your own home. You might think you are saving by not paying an agent’s fee and only have to hold an open house and deal with some paperwork. However, statistics have shown that sellers tend to make more money when they hire a Realtor. According to the National Association of Realtors®, an agent-assisted home sale has a 13 percent higher sales price than a FSBO (For Sale By Owner).
Here are a just a few ways you save with an agent.
1. The price is right
Pricing your home is one of the most challenging parts of selling. A Realtor is highly experienced in this area and can help you avoid pitfalls. For instance, over-pricing may leave your home languishing on the market and if you start dropping it, you can be seen as desperate and bring in low-ball offers. On the other hand, if you price too low, you’re leaving money on the table that could be in your hands – something you probably don’t want to do when selling your most valuable asset.
Let’s face it, you have to spread the word about your property. Paying for online listings, mailers and signs can be expensive. Most Realtors already have a plan in place for marketing as well as the connections to spread the word quickly and efficiently and usually at no added cost. This can also relieve a lot of stress off the seller.
No matter how well your home is priced, you will likely find yourself negotiating with the buyer. This is where an agent’s skill and experience will really help you get a fair price. Not to mention the fact that most buyers think they can negotiate a real deal if you are selling the home yourself. Do you know what your home is really worth in the current market to back up your price?
4. Time is money
Let’s face it, life is busy. Adding tasks like creating marketing materials, arranging showings, finding contractors, negotiating, reviewing documents, etc will cost you both time and money, as well as add a lot of stress. Let a Realtor that performs these duties daily and has resources at his/her fingertips do the work for you and help you open your schedule and sell your home faster.
Reconsidering your FSBO status? Contact Gwen at 972-824-6466 or email@example.com
— article adapted from ABOVE, The Re/Max Magazine —
Some homeowners consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). We think there are several reasons this might not be a good idea for the vast majority of sellers.
Here are five of our reasons:
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO.
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- Your bank in the case of a short sale
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?
3. Actual Results also come from the Internet
Where do buyers find the home they actually purchased?
- 43% on the internet
- 9% from a yard sign
- 1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real commission. The seller and buyer can’t both save the same commission.
Studies have shown that the typical house sold by the homeowner sells for $184,000 while the typical house sold by an agent sells for $230,000. This doesn’t mean that an agent can get $46,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.