There are many pros and cons to working with a real estate agent or choosing to sell your own home. However, how do you know which option is right for you?
Selling your own home can be a lot of work, but well worth the rewards. Here’s how to know when “for sale by owner” is the right option.
You Need to Save on Commissions
The primary motivator for selling your home without an agent is saving on commissions. Depending on your area, an agent’s commission could range from 4-8% of your home. On a $200,000 home, you could pay your agent $12,000 for their services. While an agent works hard for that money, it’s a hefty financial burden that some sellers can’t afford.
If finances are limited and paying an agent could put you in a precarious position, it’s well worth exploring the opportunity of a “for sale by owner” listing.
You Understand the Resources
While many materials were once limited for use to certified real estate agents, there are now options available to help market your home. You can purchase a package from Houzeo to get access to the MLS as well as helpful resources to create a professional-looking listing.
While some real estate agents won’t send their buyers to an FSBO seller, others are adapting to this market shift. Taking time to research and understand the resources available can give you a better idea of if selling your own home is the right decision.
Limited Agent Options
To sell a home, you need an agent that you trust and respect. If there’s no one in your area that fits the bill, consider handling the sale yourself. This decision is common in rural areas where small real estate firms have a monopoly, and personal relationships have an impact.
If there’s no local agent who you can see working with, selling your home yourself is a viable option.
You Want Control Over the Timeline
Putting your home up for sale often means giving yourself over to the whims of real estate agents. The timeline, viewing schedules, and closing dates are all contingent on other peoples’ schedules. If you want or need control over the timeline, listing your home as for sale by owner is the best way to make it happen.
This is also a great approach if you aren’t in a rush to sell and want to wait and see what offers you can get.
You’re in a Sellers’ Market
When you’re in a sellers’ market, it becomes far easier to handle the sale of your home yourself. It’s a simple matter of supply and demand: fewer homes and more buyers means more potential for a profitable sale. With the right pricing strategy and some strategic social media sharing, you can sell your own home quickly and efficiently in a sellers’ market.
The potential for a higher selling price compounded with the lack of commissions makes this option incredibly profitable.
You Have Professional Skills
Anyone can become a real estate agent. Yes, they have to complete tests and certifications that provide invaluable knowledge, but a lot of home sales is marketing, networking, and negotiating. In other words, people with a professional background in marketing and sales could potentially sell their own homes.
If you have professional skills that would translate to marketing and selling your home, it’s worth exploring this option. Keep in mind that selling your own home doesn’t mean handling everything yourself. You can always hire a professional cleaner, stager, and photographer to help with the process.
Listing a home as “for sale by owner” isn’t for everyone, but it can be quite profitable for the right person. Take your time to conduct research and determine if this is the right move for you.