When you finally decide to sell your home, there is often a little question that pops up before you hire a real estate professional, “Could I sell my home myself?” We all want to take home as much on our investment as possible; this is a fundamental question to consider, and not at all uncommon. There are pros and cons to working on your own vs. working with a realtor, so let’s take a look at what those are to give you perspective on what might be right for you.
Selling Your Home Solo Advantages
Pro # 1 – You Are in Control
When you are in control of the home selling factors, it allows you to make decisions that might otherwise not be favored by a realtor. You will not have to explain your choices or jump through their hoops; you’ll sell your home as you intend and negotiate your deal.
Pro # 2 – You’re the Expert on Your Home
One of the best reasons to sell your own home is that you know the structure inside and out. This makes you qualified and an expert who might be a strong selling point for a buyer. You’ll be able to effectively speak to the home’s features and answer questions immediately with little back and forth.
Pro # 3 – You’re Not Paying a Commission
When you sell your home with a realtor, you’re paying that person a commission which comes right out of your sale profits. Even with negotiating that commission price, you’ll still pay between 5-and-7 percent.
Pro # 4 – Build Rapport with the Buyer
Since you’ll be working directly with the buyer or their agent, you’ll get the opportunity to build a professional relationship and perhaps earn trust resulting in more from the sale.
Selling Your Home Solo Disadvantages
Con # 1 You May Not be Taken Seriously
You might have a terrific property, but some people don’t want a complicated real estate transaction. Some homebuyers are afraid of pursuing a for sale by owner home and fear there will be something shady or problematic about it.
Con # 2 Inexperienced and Prone to Mistakes
When you hire a realtor, part of what you pay for is their expertise. They not only know home selling contracts and paperwork, but they also understand the legalities involved. Your transaction could be ground zero for mistakes that can cost you.
Con # 3 Out of Pocket Marketing
Real estate professionals spend a good bit of money on advertising and marketing of their listings. If you decided to go with selling yourself, you’ll have to pay for advertisements and other marketing materials or opportunities. You may have to host your own open house and interaction with agents and potential buyers straight out of the gate.
Con # 4 Emotions
Real estate transactions are high drama, and for a good reason, there is a lot of money at stake. Your emotions will run high when selling your home, which can impact how you price it and/or how you negotiate your deal.
All in all, if you find yourself getting overwhelmed or are unsure if you can handle the paperwork load, we urge you to hire a professional. You can also try to negotiate the commission with them, and you might be able to save a little that way.