For Sale By Owner, Or Full-Service Agent?
If you’re getting ready to sell your home, you may be wondering whether you need a real estate agent to do it. The truth is, some sellers do put their homes on the market without help from a professional. These are what’s known as “for sale by owner” (or FSBO) listings, and they can differ significantly from traditional real estate transactions. That’s why it’s important to know your options if you’re considering going through the process alone.
If you’re wondering whether to sell your property on your own or work with an agent, here’s what you should know…
FSBO listings: the facts
The internet has made it easy to learn about anything and everything—including real estate. With access to local market data and information on the selling process, some homeowners are making the decision to sell without an agent.
Of course, there are both pros and cons to going the FSBO route. The biggest benefit is the potential cost savings. Most real estate agents will charge sellers somewhere between 4 and 6 per cent of their sale price. If you don’t work with a professional, you won’t have to pay that commission.
On the flip side, real estate transactions are complicated. Taking care of every aspect of a home sale can be incredibly stressful, especially when you don’t have industry experience and in-depth local knowledge on your side.
Not only that, but many FSBO sellers make common missteps—and wind up hiring an agent eventually. In some cases, they have no choice but to drop their selling price (since buyers become wary of homes they see sitting on the market for a while). The result? The costs of selling may be higher than they would be had they hired an agent in the beginning.
What an agent brings to the table
It would be great if your home could sell itself. Unfortunately, that’s not how it works. A smooth and profitable sale is almost always the result of a real estate agent’s careful strategy and hard work.
Let’s start with pricing. The last thing you want is for your home’s price to be set too low. But raise it too high, and you may not get any offers. An agent will look at your property’s unique features and recent sale prices in your area to help you settle on just the right number.
Of course, that’s just the beginning. From there, you’ll need to prepare your home for the market. A full-service professional will call on their network to stage your home tastefully—and capture high-quality photographs before listing.
Then there’s your marketing, which should be strategic, eye-catching, and engaging. Of course, once you do attract an offer that appeals to you, the work isn’t done. You still need someone to negotiate for your best interests, perform thorough due diligence, and (finally) close your sale.
Sound like a lot of work? That’s because it is. Don’t get us wrong, we’re not saying FSBO transactions never work out. What we are saying is, know what will be required of you before you take this step—and be realistic about whether you’re equipped to do so.
Making the right decision
If you’re thinking about selling your home on your own, start by assessing whether you have the right skill set and experience.
If you have a strong sales background, in-depth real estate knowledge, and connections across the right industries, you may be able to achieve a successful outcome without an agent in your corner. Either way, there’s another important question to consider. Is doing so worthwhile? Here are a few things to think about.
First off, you’ll only pay your agent if your home sells. So if you’re worried about shelling out your hard-earned cash without achieving a successful result, don’t be. Of course, that approximate 4 to 6 per cent commission (which will be split between your agent and the buyer’s) may still be a sticking point for some sellers.
Before you make the final decision, consider all of the services an agent provides. A seamless, end-to-end transaction may be worth the price—especially since you might wind up selling for less if things don’t go perfectly the first time around.
All of that said, the decision of whether to list FSBO is ultimately yours to make! The first step is educating yourself. Hop online to learn as much as you can about the selling process—and talk to a local agent to find out what type of services they can offer you.
Interested in learning more about selling a home? Get in touch to set up a free, no-pressure selling consultation!
