12 Jan 6 Pros and Cons of Selling a Home Yourself
Is it a good idea to sell your home without a Realtor?
Selling your home yourself, referred to as FSBO or “For Sale By Owner”, is an option but it a good option for you? Here are some Pros and Cons about the FSBO process to help you decide.
Also see my post “2 Myths About FSBO”
No commission fee – Commission fees are typically 6% of the homes selling price and both the listing and selling agents are paid by the seller. This means a 12% fee off the price of your home. This method evens out because when buying your next home you wont be paying any commission. By selling your own home you avoid legally being responsible for any commission.
Online Marketing – With the technology available today you can market your home on websites like Zillow and Trulia. Social media platforms also allow more broad reaching marketing then ever before.
Most people, including myself, like to think their job has value, here’s a Realtors value.
Lack of Knowledge – Realtors have experience dealing with the ins and outs of selling homes. When problems occur we know what to do or at least who to ask. As with any job you run into a vast amount of situations and learn how to deal with them. While you haven’t had an Appraisal come in low, an Inspection go wrong, or dealt with multiple offers Realtors have and know what steps to take.
Another resource Relators provide is pricing advise. One of the key factors in Real Estate is pricing. Looking at a house with three bedrooms, two bathrooms, and an unfinished basement on Zillow listed for $249,000 may give you a base for how your house compares, but do you know why a similar home could be worth $230,000 or 300,000$? If you don’t then you are in danger of overpricing or underpricing your home.
Read my post “How Accurate is a Zestimate?”
Lack of Formal Education – You may not know this but Realtors have to take classes and get a License. That’s right, we have a formal education in selling houses! I like to equate this to other jobs that require schooling and a license;
- Would you cut your own hair?
- Take your own blood?
- Pull your own tooth?
- Represent yourself in a serious court case?
- Would you perform your own surgery?
Comparing a Realtor to a Lawyer or Surgeon is an exaggeration but Real Estate is a serious matter. Houses are typically the biggest purchases of peoples lives!
Lack of Connections – Not only do Realtors have experience in selling homes we have connections in the business. We know inspectors, mortgage officers, handymen, and even moving companies we can recommend. As Realtors we also get access to the MLS, or Multiple Listing Service, this is the most comprehensive, accurate, and up to date listing source and it’s only available to licensed Realtors.
Safety – Often overlooked, using a licensed Realtor provides you with protection from scams, fraud, physical danger, and wasting time. Many people like to pursue through houses checking out different floor plans and market inventory for entertainment. I’m one of them, but I turned it into a career! When having to go through a Realtor these casual window shoppers are weeded out allowing more time for serious buyers.
Another very real danger is people coming to your home under the guise of viewing your house and attacking or robbing you. This is a danger for Realtors as well and we take many precautions for our own safety.
I would never suggest selling a home by yourself because I know just how tricky it can be. My advice is to choose a Realtor to represent you. Please feel free to contact me with any questions at 612-889-6496, or [email protected]