For Sale By Owner vs. Hiring an Agent?

For Sale By Owner vs. Hiring an Agent? Many homeowners believe that to get the most money out of their home sale they should sell it themselves, thereby saving the commission they would otherwise pay to a broker. Indeed, approximately one-fourth of home sellers each year do not use a real estate broker and about 72 percent of those are happy with the results they achieved.

However, close to half of that 72 percent also stated that the next time around they would hire a real estate professional to help them sell. Why?

For many, the time, paperwork, research and hassles involved in getting their home sold on their own were not worth the amount of money they saved in commissions to a broker.

For others, by the time they figured in the amount of fees paid to outside consultants, lawyers, inspectors, appraisers, and title, escrow and loan officers as well as marketing, advertising and other services and vendors, they may as well have paid the broker’s fee, which may have included some of these charges up front.

Some will also have discovered that the cost of recovering from a misstep or bad decision based on inexperience or lack of guidance more than outweighed the amount they saved in real estate agent fees.

Questions You Need to Consider:

• Do I fully understand the steps and legal and tax ramifications of selling a home?
• Am I prepared and able to deal with buyers—especially those who see FSBOs as ready targets for low-ball bids?
• Do I have the time and ability to devote my energy and efforts to everything that selling a home requires?
• Do I have a plan for handling the legal contracts and agreements involved as well as any disputes with buyers both before and after an offer is presented?
• Have I researched financing options that buyers will need and expect information about?
• Have I contacted all necessary professionals, including a real estate attorney, a home inspector and a termite inspector, etc., and agreed with each on their specific parts of the deal?

If you are a first-time seller, these questions are even more important since you haven’t been through the process before.

Set a Realistic Goal

After answering all these questions, if you still feel that maybe you’d like to try to sell on your own, you may want to give yourself a time limit—just as you would give an agent in a listing agreement.

Then, after trying it on your own, if your home hasn’t sold, reevaluate your situation and consider whether you need to pursue other options.

Whatever the case, you always have the option to consult with several qualified agents and determine whether their services are worth the price you would pay. In the vast majority of cases, they are.

Choosing the Right Real Estate Agent:

Follow this link to learn more about selecting the right Realtor CLICK HERE