Should You Sell Your Home By Owner?
Your home is your most treasured possession, and if you decide to sell it, you want to be sure you do it right and realize the most profit you can. Again, as a homeowner, you naturally want to get as much money as possible from the home’s sale. With this in mind, you might be considering selling your home without a realtor as it can spare you from potentially steep commission fees. Nevertheless, before you take that leap, it is good to understand the benefits and drawbacks associated with going FSBO to make the most out of your home’s sale.
Here are the pros and cons of selling your home by owner:
Pros of Selling Your Home By Owner
You Could Save Some Money
In the long run, you want to sell your home without complication and hopefully for a profit. Since you won’t be required to give a percentage of the total sales amount to a realtor for their commission, selling your home by yourself could allow you to pocket some extra cash, provided you were able to sell your home at true market value.
You Have Total Control Over the Process
When you decide to sell your home by owner, you get full control of the process. You will not require anyone’s opinions on how to market the home, price it, negotiate, and prepare the home before selling or any other decisions. You are the boss, and you are free to go with any decisions that best suit your interests.
No one has better knowledge of your home than you do. You have firsthand information on what it is like to live in that house and be part of that neighborhood. This makes it easier for you to share this insider knowledge with potential buyers who want to know what it is like to live in your home.
Cons of Selling Your House By Owner
It Is Time-Consuming
One of the major drawbacks of selling your home by yourself is that it takes time to manage the process and can be quite stressful. You will have to market and advertise your home, get outlets to list it, determine if buyers are qualified and show them the home and negotiate and figure out required paperwork, etc., all of which can take up a large amount of your time as they are tasks mostly performed by real estate agents.
Lack of Real Estate Knowledge
Legal terms, documentation and other real estate jargon may be quite overwhelming, especially if it is your first time to sell a house. You’ll need to negotiate with buyers and have to deal with potential issues from the home inspection without the benefit of an agent with lots of experience in these issues on your side.
Lack of Full Market Exposure
Most importantly, not having your home marketed with an agent through the Multiple Listing Service (MLS), where all realtors share data on the properties they represent, your home will not have the maximum market exposure. The majority of buyers use a buyer’s agent to help them find a home and most buyer agents use the MLS to find homes for their clients, missing out on the FSBO market.
In as much as you may successfully sell your house, it may be at a lower price since it’s well documented that the way to make sure your home sells for the highest possible price is to have exposure to the entire buying pool. Some studies have shown that FSBOs nationally sell for 10% lower than realtor-assisted home sales.
It’s Hard to Set the Right Selling Price
Pricing a home is quite a hard hustle, especially when you are doing it for the first time. Several factors, such as recent sales in the area, the amount of housing stock available, and the city or country’s present valuation, need to be considered. While you have to seek this information, real estate agents know it well, making home selling easier with them. Either way, our free home valuation tool is a great place to start to get an estimate.
The Bottom Line
Selling your home by owner allows you to save a considerable amount of real estate commission. But the great question is: How much time, stress, and effort you are willing to sacrifice to get full control over the home selling process and make the most out of it? Hiring a professional real estate agent is advantageous as they can help you save a huge amount of time and sell your house at the highest price.
Ready to Sell Your Home?
If you’re thinking about an agent at all, we’d recommend you have one out for a visit to learn more, can’t hurt. We can help connect you with the best real estate agent with local expertise through our network of top agents nationwide. Click here to get started now!