With real estate agents’ commissions running as high of 5% of a home’s final sale price, it is tempting to hang out a “For Sale By Owner” sign and save the commission. But, is it easy to sale a house? For sale by owner is hard work and sometimes it is negative. Use these tips to decide if for sale by owner is a good option for you.
It requires time, energy, market knowledge, some money and most importantly, that you leave all emotion at the door. If you are a owner needing to sell fast it is better if you agree to sell it with a professional that will protect your interests...
Real Estate Agent
For Sale by Owner
|1||Market on more than 20 websites.
Very high exposure
|vs||Market in 1-3 websites. Exposure home extremely less|
|2||Negotiate Contracts, deal with other agents, lawyers and potential buyers||vs||May miss some details on contract, a non represented owner, answer all phone calls and emails|
|3||Will help get more money into your pocket||vs||Will probably spend more money, buyers want same commission you are saving as they will negotiate more|
|4||Is a qualified professional||vs||Possibly guessing, assuming and paying lawyer fees|
|5||Knows all the properties the buyer visited so knows how good your property is||vs||His/her house is the best property. Buyer will say that is in very bad conditions comparing to others|
|6||A professional protects your interests||vs||You are alone|
|7||Knows the market, the area and the competition||vs||Possibly knows the neighborhood|
|8||Real estates saying good things about your property||vs||You have all real estate saying probably bad things about you and your property|
I love For Sale by Owners because they are like myself: motivated, determined and willing. But lets take a look at the difference between a Real Estate Agent vs. a For Sale by Owner.
For Sale by Owners sale their own homes for one reason to “save on paying commissions to a real estate agent”. The commissions they think they are saving they are actually paying with the efforts through their own hard work, own marketing, lawyer’s fees and sometimes lawsuits from buyers.
Why work hard when you can have someone work harder and more efficiently for the same amount of commission you think you are saving?
Also take into consideration that the buyer knows you are saving on commissions and will want that same fee deducted from the asking price of the home.
Now are you really saving? Working with a real estate agent will save you a lot of time to do different things such as marketing, providing a secured electronic lockbox for access, eliminate calls coming directly to you, review contracts, negotiate, making sure all steps are done and completed to ensure a smooth transaction, help to stage your property, provide suggestions and deal with buyers and their agents.
For Sale by Owners for the most part pays buyers agent to work against them. That mean if you are selling your house yourself and I am representing a buyer and you are willing to pay me a percentage to bring my buyer, I am working for the best deal for my buyer. For Sale by Owners are non represented owners. Would you go into a court room without an attorney to represent you or if you needed surgery would you take out the knife and perform the surgery yourself? Of course not you hire a professional.
Have a Real Estate Agent work FOR not against you. Contact one today.