Why would someone sell their own house instead of having an agent sell it?
I’ve got to say, up front, that I do have a brokers license, and have been working with home-sellers for 38 years. I have access to lots of numbers. I can see exactly how many houses were sold this year. I can see exactly how much money each one brought. I can take from that, the average price of the houses sold in my area, and though it may differ from transaction to transaction, I can pretty well work out the commissions involved for the sellers.
When I do the math, I come out with the above, headline figure.
There are several reasons why someone might choose to sell their own house (known as “For Sale By Owner” or FSBO) rather than using a real estate agent:
- Cost Savings: One of the primary motivations for selling a house on your own is to avoid paying a real estate agent’s commission. Real estate agent commissions typically range from 5% to 6% of the home’s sale price. By selling on your own, you can potentially save a significant amount of money.
- Control: When you sell your own house, you have full control over the entire process. You can set your own listing price, negotiate directly with buyers, and make decisions without relying on an agent.
- Personal Involvement: Some homeowners enjoy being directly involved in the sale of their property. They might have a strong emotional connection to the house and want to oversee every aspect of the transaction.
- Local Knowledge: Homeowners often have unique insights about their property and neighborhood that can be valuable to potential buyers. This firsthand knowledge can be effectively communicated by the homeowner during the sales process.
- Flexibility: Selling on your own allows you to work on your own schedule and make decisions quickly without waiting for communication between parties through an agent.
- Marketing Control: You have control over how your property is marketed. You can choose the listing platforms, create your own marketing materials, and highlight the features you believe are most important.
- Avoiding Unwanted Pressure: Some people prefer not to deal with a real estate agent’s pressure to make certain decisions, as agents may have their own interests in mind.
However, it’s important to note that selling a house on your own can also come with challenges and potential drawbacks:
- More Limited Exposure: Real estate agents have access to a wide network of buyers and other agents, which can lead to more exposure for your property. Selling on your own might limit your reach to potential buyers.
- Time and Effort: Selling a house involves a lot of your time and effort marketing and showing the property and negotiating and handling paperwork. It can be a bit overwhelming, especially for people who aren’t familiar with the process.
- Pricing Questions: Determining the right listing price can be complex. Without the expertise of an agent, you might overprice or underprice your property.
- Negotiation Ability: Negotiating directly with buyers can be challenging, and emotions might get in the way of making rational decisions.
- Legal and Paperwork Issues: Real estate transactions involve a lot of legal documentation. Without professional guidance, you might overlook important details that could lead to legal issues down the line.
In summary, selling a house on your own can save money and provide a sense of control, but it also requires a significant amount of time, effort, and expertise. If you’re considering For-Sale-By-Owner, it’s important to weigh the pros and cons and consider your own comfort level with the complexities of the real estate market and transaction process.
https://unsplash.com/@kyddvisuals
