At one time or another, most homeowners consider a “for sale by owner” arrangement when they go to sell their home. After all, what’s not to love about it? You get to call the shots, so to speak, and more than anything else, you don’t have to pay those huge realtor commissions.
But when all is said and done, is the money you save really worth it? Does a realtor provide advantages you can’t get when you try to sell your house yourself?
For sure, there are both advantages and disadvantages to selling your home yourself, so regardless of what you choose to do in the end, it’s important to take a good hard look at all of the details so that you can decide for yourself which option is best for you. There is not a “one size fits all” type of seller arrangement, so you’ll have to weigh the pros and cons to decide which one will best suit your needs.
Why Try to Sell Your House Yourself?
The number-one reason most homeowners decide to sell their home themselves boils down to one thing: no commission to pay to a realtor. Indeed, realtor commissions can run in the tens of thousands of dollars, which takes a large chunk out of the profit you’ll make when you sell your home. While selling your home yourself does indeed save you this money, the bottom line is that more often than not, a realtor is going to sell your house a lot quicker than you will on your own.
What does this mean in practical terms? Think of it this way – for every month you do not sell your home, you’ll have to pay a house note. If you end up taking an entire year to sell your house, that amount can add up to a lot of money. If you consider what you’re paying a realtor, then take into consideration that a realtor could possibly sell your home in three months, you’ll understand that you may not be saving a lot of money by selling your home yourself. You’ll have to do the math to understand what this is saying, but this is definitely something to think about before you decide for sure to sell the house on your own.
The Advantages and Disadvantages of “For Sale by Owner”
Some of the advantages of selling your home yourself include:
- Your expertise is invaluable. No one is more familiar with your home than you are, so you’ll be great at bringing up all the good points about your house to prospective buyers.
- You are likely to have at least one skill that can help you. Whether it’s your marketing skills or the fact that you know contracts well, you’re very likely to have a skill or two that is needed to complete the transaction.
- You save money. With an FSBO arrangement, you pay no fees to the realtor or a listing agent, which can easily put $10,000 to $15,000 more into your pocket once the home is sold.
Some of the disadvantages of selling your home yourself include:
- You might get a higher selling price if you use a realtor. This, in turn, can mean even more money in your pocket at the end of the day.
- Think about all of the paperwork you’ll need. It isn’t just a contract you’ll need to write up; it’s other documents as well. A realtor will know how to accommodate all of them, whereas you may overlook something important.
- You may not have the negotiation skills you need. Professional realtors know how to negotiate with other agents, appraisers, inspectors, and many others. Chances are, you do not have these skills.
Conclusion
You may be thinking that selling your home on your own will bring you more money, but that isn’t always the case. Don’t believe that just because there is no realtor involved, there will be no closing cost or other costs involved. You have to weigh every detail and consider which is more important to you – time or money, because that is likely what it’s going to boil down to.
To get cash fast out of the sale, you’ll need to sell the house fast, but it’s best to take your time when figuring out how to do that because the answer isn’t the same for everyone.