When the time comes to say goodbye to a property, most homeowners are after a quick sale and the highest price. But what is the best way to sell your house fast? Should you sell your house on your own or is working with a realtor a better option?
In all cases, you’re probably opting for choosing the best offer for your house. There are many ways for marketing your house and pricing your house and it all depends on what your needs and expectations are. There are a lot of decisions to make in the process and while some prefer the world of FSBO or for sale by owner, others rely on the experience and professional support of a real estate agent.
In this article, we’ll explore the drawbacks and benefits of selling your house by owner. We’ll also compare them to the disadvantages and benefits of selling your house using a realtor. This information will help you in selling your house according to your needs. By the end of this read, you’ll know every aspect of both scenarios and will be able to make an informed decision on selling a house.
How To Sell Your Home By Owner Fast
Selling House by Owner
The idea of selling a house without an agent is tempting for most homeowners as it assumes a number of gained benefits. In fact, nearly half of FSBO sellers believe that this type of sale will be faster, that they’ll receive a fair cash offer when communicating with cash buyers, and that the process is straightforward and easy. But what is for sale by owner in the first place? It is the process of selling your home without any help from an agent or professional realtor. In other words, you are in full charge of every step, from taking photos of your property, listing it on relevant platforms and marketing your house, setting the right price, negotiating, and more.
Before you decide to sell your house by yourself, it’s worth diving into the topic in more detail to uncover the true answers. For sale by owner does have its set of advantages but it also comes along with a number of drawbacks that you should be aware of.
Pros and Cons of Selling House by Owner
Let’s look at the pros and cons of selling a house by owner. If you’re looking to sell your house fast and on your terms, is this the right path to take?
Some of the advantages of selling your house on your own include avoiding paying commission to an agent, having full control over the listing price, better management of viewings, and a higher motivation to promote your house better across real estate websites. However, selling fast for many FSBO sellers is no easy task. The process is quite time-consuming, pricing your home is not as easy as it sounds, and you may actually have to pay a commission even if you’re not working with an agent.
Let’s look at these in more detail.
We’ll start by exploring the advantages of selling your home solo without the help of an expert.
You Are in Control
One of the most lucrative benefits of FSBO is the fact that you are in full control over the process. You are the only one in charge when it comes to setting your listing price. Considering that you are fully aware of the property’s strong and weak sides, the location’s characteristics, and other important factors influencing the price, you’re fully capable to set a reasonable price. Do some research to see how your area is performing in terms of property prices and if you find yourself stuck, you can always work with a professional appraiser who can give you a realistic market value of your home.
As a house seller, you don’t have to make any compromises unless you see the added value in the long-term. A home sale with a realtor may unfold in an unexpected way as they will likely guide you in the direction they feel is most beneficial for you. However, this may not always be the case. For example, in case of a stagnant listing, your real estate agent may advise you to reduce your listing price, which may not be an ideal option for you. When selling by yourself, you don’t have to compromise unless it is absolutely necessary.
No listing agent commission
When it comes to FSBO, one of the most popular reasons for choosing this type of sale is the fact that the seller doesn’t have to pay a commission to the real estate agent. This significantly cuts down the expenses of the property sale and allows the seller to finalize the sale with a higher profit. The agent’s commission is calculated based on the final selling price as it is a percentage, usually between 4% and 6%. Normally, both the home seller and home buyer pay commission and split the sum equally. Selling your home by yourself requires no commission fees. However, keep in mind that there may be other expenses that you must consider.
As tempting as selling your home alone may be, there is a reason why real estate agents work full-time to help clients sell their properties. There are a number of drawbacks to selling your property without the help of an agent.
Requires Hard Work
Selling your home without support from an experienced realtor demands a lot of hard work. For most homeowners looking to sell their property, investing the required amount of time is merely impossible, especially if they have a full-time job. Before you can receive a reasonable cash offer for your house, you must spend time taking photos of the property and potentially editing them, creating an attractive description of the home, putting a listing up across chosen platforms. You must also make time for viewings, negotiations, and the actual closure of the sale. The procedure is quite demanding and requires extensive legal knowledge too.
Although most people assume that an FSBO will save them money, in the end, most sellers end up with fewer savings. Despite the fact that you avoid paying a commission to an estate agent, you will not make as much money as you planned. The reason behind this is that most home sales go through with a higher selling price when a realtor is involved. A professional estate agent is better prepared for negotiations, promoting your property, and protecting your best interest during the sale. On the other hand, if you do decide to sell your home alone, chances are that if your listing doesn’t receive the desired attention at the start, you’ll have to lower the price in order to attract potential buyers.
Selling a House Using a Realtor
Now that we’ve covered the main benefits and disadvantages of selling a house by owner, let’s take a look at what the situation is if you decide to sell your home using the help of a realtor. This is a popular choice of sale for homeowners opting for selling a house fast. Yes, there are certain expenses associated with a house sale with a realtor but let’s see if it’s all worth it in the long-term.
Pros and Cons of Selling House Using a Realtor
A realtor can truly make a difference when it comes to the successful sale of your house. Selling a house with a realtor is a preferred choice for many as it dramatically reduces the stress accumulated during the process, saves time, ensures a safer sale, and more. Working with an experienced real estate company can save you legal complications, unexpected situations, and can guarantee that you achieve your objectives.
If you’re a house seller, it’s worth getting to know the pros and cons of a house sale with a real estate agent.
For starters, let’s look at the advantages that you can expect to enjoy if you choose to work with a realtor for the sale of your house.
The professional help of a realtor is not something that should be ignored. They can offer expert support during every stage of the sale, from the listing to viewings and sale closure. Real estate agents are equipped with know-how and experience in negotiating, meaning that you have a higher chance of reaching your desired goals. They can also offer their legal help as they are fully aware of the selling process and can help you stay protected and safe during the procedure.
Giving your house a reasonable price is one of the hardest decisions to make in an FSBO. The reason is that most homeowners are emotionally attached to the property and perceive its value higher than it is in reality. You are also more likely to ignore the home’s flaws as chances are that you’re so used to them that you don’t notice them anymore. Working with a realtor can help you set a realistic price for your home and therefore complete the sale faster as the listing will be more attractive to potential buyers. Setting a higher price than acceptable to the market may mean that you need to make constant changes to the price, making your listing unattractive for buyers.
One of the reasons why realtors can help sell your home faster is thanks to their well-established networks. Although you can sell your home yourself on websites such as Zillow, Redfin, Craigslist, and others, the reality is that a realtor’s large personal and professional network is a lot more beneficial to have access to. You can even sell it on Facebook! Considering that real estate agents devote their time specifically to communicating with people interested to buy or sell property, they can quickly and easily promote your home to potential buyers. Their relationships with other agents and clients are essential for selling homes. Having access to a realtor’s network can save you time and money when selling your home.
As good as hiring a realtor for selling your home may sound, there are a few drawbacks that one should have in mind.
Don’t forget that your property is not the only one being sold on the market. It’s the realtor’s job to work with many clients just like you and sell their properties to buyers. This means that, in a way, your house will be competing with others. If you are able to invest the necessary time and energy into promoting your own property to potential buyers you will avoid direct market competition. Of course, there are other houses for sale but at least you know that the realtor you work with will not be showing other clients houses just like yours after the potential buyers have left your property.
A factor that most homeowners look at when deciding whether to sell their house with a realtor or alone is the commission they have to pay. After all, getting the help of an expert is not a free luxury. Realtors invest a lot of time and knowledge into selling your home and marketing it to potential buyers, meaning that they do deserve to get paid for it. The standard commission that the realtor receives from a house sale is 3% of the final listing price. Overall, the received commission is between 4% and 6% but is equally split between the seller and buyer. This may mean fewer savings for you but if you manage to sell your home for a higher price with the help of an expert then it certainly is worth it.
Selling a house is a complex process that demands a level of research, preparation, and a lot of decision making. Hopefully, the information we’ve shared with you regarding the choice of FSBO or selling your house with a realtor will help you make the right choices when you decide to say goodbye to your home. If you are interested in the topic and would like to receive more information or explore real-life examples, you can check out our case study that reveals additional details on selling your house by yourself vs. selling your house with a realtor.