It’s no surprise that selling a home takes a lot of grit. Regardless of if you are a real estate agent or you choose For Sale by Owner, it’s a huge commitment. The question comes down to this, how much responsibility are you willing to take on? There certainly are pros to selling your home yourself, but with pros always come cons. In this case, choosing to sell your home yourself can put you in a pretty risky position. If you’re in the market to sell your home, consider these pros and cons of for sale by owner and hiring a real estate agent. Ultimately you must decide for yourself what route you want to take, so use this as a guide as you consider the reality of selling your home!
PRO: Avoid Commission Cost
Many people choose to sell their homes by themselves to avoid paying a real estate agent a commission fee. Zillow’s research shows that “Commissions average between 4% to 6% of the home’s purchase price.” These fees are usually paid by the seller from the proceeds of the sale. Typically, the buyer and seller have their own agents, with the commission split between the two. Even though this seems to be a common thought, there are always some fees along the way. Regardless of if you choose For Sale by Owner or hire a real estate agent.
CON: Lower Selling Price
Although some people choose to avoid hiring a real estate agent to save on commission costs, they run the risk of accepting a low-ball offer. It makes sense. Many homebuyers don’t know the value of their home and market conditions. That’s why real estate agents are key in getting the offer you want and deserve. Real estate agents know the market, they have experience in pricing strategies, and they understand the process of negotiating. By choosing to sell your home yourself, you run the risk of being undercut in your home sale. Remember that commission fee? By hiring a real estate agent, you can potentially sell your home for more than you expected. That commission fee you were worried about? It won’t matter if you get more than you bargained for.
CON: Safety & Security
You know your home and your neighbors better than anyone. You carry with you the valuable resource of knowledge of the neighborhood! This gives you an upper hand when dealing with potential home buyers. Simply sharing information about your neighborhood is a top-selling point. However, you aren’t selling to your neighbors, they already live there! When you sell your house by yourself, you run the risk of the unknown. Unfortunately, you do not possess most of the resources needed to investigate the people coming to see your house. Or if they’re even ready or qualified to buy your house. Criminals and thieves have been known to target FSBO because they know there is no process with For Sale By Owner.
Is saving a few thousand dollars really worth the risk of opening you and your family to real potential danger?
Real estate agents have connections everywhere. They know the ins and outs of various areas and neighborhoods because of their experience. And it’s credible. You may have an upper leg with the relationships you have with your neighbors, but they have resources that can get the information and actual statistics to bring the right buyers in. Consider the effectiveness and selling techniques that real estate agents have to offer before you decide to take it on yourself. And as always, keep you and your families safety in mind.
Know What You’re Up Against
If you’re getting ready to sell your home, consider these pros and cons to the process. Remember, with every pro there comes a con! There is certainly nothing wrong with choosing to sell your home yourself, people do it all the time! Unfortunately, a lot of people don’t know what they are signing up for by doing this. There are safety risks and concerns that pose the biggest threat to those who choose For Sale by Owner. We always keep our clients in our best interest, which is why we work tirelessly to ensure the right people are walking through our client’s front doors. We hope that this gives you something to think about moving forward. At Moayyer Real Estate, we are here to help! If you have questions about the home buying process or simply want to chat, we are here!
Tony & April