Are you selling your home? It’s not always an easy decision when considering using a realtor to assist or selling your home yourself. Both options have pros and cons. It’s important to make an informed decision for the maximum amount of profits on the property you’re selling. Continue reading about the benefits and drawbacks of selling your home yourself vs. hiring a realtor to sell it for you.
Reasons to Sell Your Home Yourself
What draws most people to FSBO (for sale by owner) is the money they could save by cutting out the middleman. With realtors come commision fees which many home sellers want to avoid. There are many other reasons that home sellers would want to do it on their own.
When you sell your home FSBO, you call the shots. You get to choose which photos go on the selling site and how you decorate the home. You get to choose the price and control the negotiations. All of the decisions are yours and you don’t have to go back and forth with someone else.
You Decide the Price
There are multiple ways you can set the price of your home. Typically, home sellers will start by researching the average asking price of homes that are going up for sale in their neighborhood. Matching the average price could give you a good base. Consider going to open houses in your area to get the best idea.
While hiring an appraiser will cost about $400-500, it’s the best way to get the most accurate pricing of your home. The appraiser will give you an objective opinion on the cost. From here you can also make a decision as to what renovations can be made to the home to increase resale value. These possibilities include painting, updating appliances, and replacing the carpet.
Sell the House on Your Schedule
When you hire a realtor, you don’t have much if any control when viewings and open houses are scheduled. It also requires you to do last minute tidying up and vacating the house when these events are planned. FSBO gives you the freedom to choose when your viewings and open houses are. This way you have plenty of time to tidy up your home, and you don’t have to find someplace to go for a few hours.
You Have Intimate Knowledge of the House and Neighborhood
Impulse plays a big part in any transaction. A potential buyer will get excited by how much you love your house and neighborhood, which could impulse them into buying your home. You know the ins and outs of the house’s quirks and the best neighborhood restaurants. If the potential buyer has insider questions about the house and neighborhood, you likely have the answer! Most realtors research the neighborhoods and homes, but they don’t have the intimate knowledge that you do.
Hiring a Realtor
While hiring a realtor cuts back your profit and control, they can also be incredibly helpful. According to Zillow, 36% of sellers start by trying to sell their house themselves. There’s a reason why only 11% of them see it through. FSBO may pay off in the long run, but many frustrations come with it, that can be avoided by having the expertise of a realtor.
A seasoned realtor will sell multiple houses per week. They have the tools and experience that FSBO sellers don’t have. They know the best ways to stage the house and have access to professional photographers. When you finally close on a home, and the buyer wants to negotiate, they have the negotiating skills and know-how that you might not have.
Eliminate Fake Leads
One of the risks you take by selling your home yourself is exposing yourself to people who aren’t actually interested in buying, and they just want to be nosey. When selling your house yourself, you provide your personal information, so everyone walking by the “For Sale” sign has access to your phone number. Realty companies put their contact information on the home. This helps eliminate calls from people who aren’t truly interested and protects your privacy.
More Access to Potential Buyers
Listing your house on the internet is a great way to attract attention to your home. However, this can be expensive and may cost more money than you expected. Real Estate Agencies have access to many different databases and can share your property with a larger amount of people.
Buyer agents also hesitate to show FSBO houses because many of them work off of commission. This commision usually comes from the sale of the house. So, if you are unwilling to pay a commission to the buyer’s agent, they will not be very excited about including your home in the houses they show.
Selling your home creates a lot of paperwork. Whether you’re selling your home yourself or hiring a realtor, there’s really no way to avoid this. However, a realtor can help cut back the amount of paperwork you do. Should there be something that you don’t understand, they can walk you through it.
There are many benefits to hiring a real estate agent. Likewise, there are also a lot of benefits to selling your home yourself. In the end, it’s primarily a decision of how much you want to pay for the convenience of a realtor. It’s also important to keep in mind that you are not guaranteed to save money by doing the work yourself. This is especially true if you’re not knowledgeable about the housing market.