Are you planning to list your Home For Sale by Owner without the help of a real estate agent? That could be a reasonable choice depending on your situation, especially if you want to avoid the agent fees.
However, there are some vital notes from the best real estate agent that you should learn before putting your property on the market without professional help.
First, you should weigh the pros and cons of For Sale By Owners to see if it fits your situation. Then, know some helpful tips to optimize the perks and avoid critical pitfalls through the process.
Pros and Cons of listing a Home For Sale by Owner, Says the Best Real Estate Agent
- Advantages to Enjoy from Selling Your Home without an Agent
Here are the top reasons for selling your home without hiring a Realtor:
1. Get Higher Profit
You may enjoy a higher return on investment because you don’t need to pay agent fees.
On average, real estate agent commission ranges from 5% to 6% of the home’s purchase price, and the buyer’s and seller’s agents split the value together. That means earning 2.5% to 3% more from selling without a seller’s real estate agent.
2. Dedicate More Time to the Sale
Another advantage is you can dedicate more time to the selling process than a regular Realtor. You only need to focus on your home sale, while an agent usually has a few clients at once.
Of course, this advantage only works if you can manage the home sale full-time.
3. Personally Manage the Sale
The best real estate agent also points out the advantage of personally managing and controlling your home sale. It means you can supervise the entire process and make it work the way you want.
For example, you can renovate or improve your home before selling without considering an agent’s advice on trending designs and themes.
- Major Disadvantages of For Sale by Owner
Now, be careful to avoid these cons of selling a home without an agent:
1. Significantly Lower Profit
It’s usual for home sellers who sell without an agent to earn up to 50% lesser than those who hire the best Realtor. That’s because FSBO sellers tend to put the wrong price on their property.
Having a low price means you will lose more than what you could have earned, even after deducting agent commissions. On the other hand, having a high price tag than competitors means your home will likely stay longer in the market. It leads you to decrease the price only to close a deal.
Moreover, having no agent means having no expert to negotiate on your behalf.
2. Marketing Difficulties
It’s significantly harder to market a home and find a serious buyer if you don’t hire a Realtor.
Remember that real estate agents have networks among their peers that expedite the marketing phase. That’s why sellers that work with agents sell their properties a lot faster and at an excellent purchase price.
3. Arduous Process
The entire FSBO selling process is a lot harder than selling a home with the help of an agent. That’s because the best real estate agent can guide a seller through all the complex steps and can even complete some requirements themselves.
It means selling without an agent makes you deal with dozens of complex processes alone. That includes home inspection, home appraisal, home pricing, completing legal documents, listing the property, marketing, and so much more.
Quick Tips on listing a Home For Sale by Owner without Hiring a Real Estate Agent
Weighing the pros and cons of Home For Sale by Owner can help you decide if it suits you or not. And here are some quick tips to keep in mind if you think selling your home without an agent is a great choice:
1. Research everything about home selling. Know the steps and legalities you should complete. Leaving a single point away can lead you to crucial pitfalls such as low profit and legal repercussions.
2. You still have to consult with the best real estate agent among other professionals through the process. For example, you can consult a Realtor to determine the correct home price without hiring them for the entire transaction. You also have to consult a real estate lawyer, property appraiser, and home inspector.
3. Look for some services that can replicate particular agent tasks. For example, you may hire a Multiple Listing Service to post your property on different listings and help market your home sale. But of course, an actual Realtor can still complete these tasks a lot better.
Talk with the Best Real Estate Agent Before listing For Sale by Owner
For Sale By Owner has some excellent perks, but it comes with critical drawbacks too. That’s why you should carefully decide if it suits your situation, or you need to hire a Realtor for more benefits.
Consult with the best real estate agent to help you make a choice.
Ed Constable works hard to provide the best experience he can for buyers and sellers, simply because his goal is to be reliable, persistent, and passionate in all areas of life.
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