Can you really sell your house by yourself? Yes, of course you can! But the question you have to ask is: What provides the biggest value to me as a homeowner?
Perhaps you are looking to save costs? Or maybe save on the amount of time it takes to sell your home. You may even had a bad experience in the past with a Real Estate agent and want to see if you can avoid dealing with one again. Everybody has different reasons why they attempt to sell a home on their own.
I’m going to break down three simple facts you need to understand when considering selling your home as a for sale by owner.
All Selling Prices Aren’t Created Equal
Pricing is not nearly as simple as it seems. Real estate markets have a lot of moving parts that only a seasoned Real Estate agent can understand. And pricing your individual property is often a lot more of an art than a science. According to Realtor.com, for sale by owner properties sell for $40,000 less than properties with proper representation.
Here’s the deal:
The price your home will sell for is very hard to predict. Bill Gassett explains in this article the various methodology required to price a home properly. The right Realtor will understand all the offerings in the housing market and this alone should cover their cost. A properly priced home will net you more money at the end of the day.
You also will have a seasoned negotiator in the room when it comes time to deal with buyer’s offers. The experience of a Realtor can help you get the most for your home and help you navigate the sometimes tricky negotiation process.
For example, the offer price isn’t the only thing that matters in a real estate contract. There are many other terms and conditions that might make a seemingly lower offer advantageous. Maybe there is an attractive closing date? How about buyer who is putting down a significant down payment? There are always 0ther things worth considering besides the offer amount.
Time On The Market Impacts Negotiations
When it comes to selling your home, the length of time you have it on the market is very important. The longer you let your home sit on the market unsold, the more you are going to risk seeing a negative viewpoint of your valuation. This means you will lose some power in terms of negotiating. Houses that sit on the market for a long time make potential buyers feel like they might be missing something about the value of your house. The buyers slowly get the upper hand in negotiating, and you can end up netting less money.
Additionally, the longer selling process puts increased stress on your family. The level of cleanliness and staging involved in modern real estate transactions is not easy to maintain.
Homes that are sold by the owner typically are on the market for 19 more days than those represented by a Realtor. This average has a lot to do with a quality Realtors marketing experience, pricing expertise, and knowledge of accessing buyers in the marketplace.
Finally, the marketing power of a Realtor is what creates the difference in selling times. A professional Real Estate agent will understand how to best use photography, social media, websites, and relationships to help sell the property faster. Time on the market does impact the final selling price. A qualified Realtor can help lower the time you spend with your home on the market and get you a better result.
Stress Levels And Professionalism Are Factors To Consider
The stress of selling a home can soon become a part-time job. In fact, Realtor.com found that FSBO sales typically result in a 70% higher stress level.
Perhaps the biggest reason for this is the amount of time it takes to field calls, schedule showings and manage the sale. You’ll have to take calls and emails while you are doing your full-time job. There will be buyers and agents seeking you out and taking up what little time you have outside of your current job.
Additionally, you’ll need to be prepared for a showing almost everyday. On top of keeping the property in showroom like conditions, you’ll have to be ready to show potential buyers around the house. These are some of the considerations that are discussed at great length in how to sell your home as a FSBO. You really should have a solid grasp if you have the time and energy to sell on your own before putting the for sale sign out in your yard.
This added stress will soon feel like a part-time job that may be worth the Realtor’s commission you think you’ll be saving. In addition to all of this, you’ll have to deal with the marketing and pricing of the house yourself. You probably are very attached to the property. This can make it hard to price the house accurately leading to longer time on the market and netting less at the conclusion of the sale. You’ll also be busy with everything related to moving after the home is sold. The stress of moving is often enough for most families without the added stress of selling a home.
There are people who can manage these things. And also understand every step of the paperwork associated with a home sale. If you are one of those individuals, then selling your home without representation might not be as stressful. But be prepared to set aside a good amount of time with marketing, paperwork, and showing the property. You’ll also want to do your research online about all the paperwork involved in a sale. It’s very important that you don’t miss something.
What’s the biggest takeaway?
The biggest take away from these data points is that on average its quicker, less stressful, and more profitable to sell your home with representation. And the decision to not use representation is one that needs to be made with care. Once you list by yourself, the days on the market start to accumulate.
This is a buyer’s measuring stick to see how competitive your home. If you get close to 90 days on the market, buyers can use that against you in negotiations even after you list with a Realtor. You’ll want to make sure you are ready to hit the marketing very hard the moment you list your home.
Selling a home is a lot different than selling things like used-cars and electronics. The sales are typically complicated and involve a lot of moving parts. These are just 3 simple points to consider. But they help paint the picture as to why it might be best to use a Realtor when deciding how to sell your home.
Tyler Zey is the digital marketing director and contributing editor for the real estate digital marketing blog on easyagentpro.com.
Easy Agent Pro helps Realtors with some of the best websites and marketing available.