The Risks Of Selling Your Home By Owner

Real Estate Blog

Many people think that they can save money on a home sale by selling the house themselves without the help of a real estate agent. Agents do take a percent commission for the work they do to sell your home, but they can often be invaluable in actually helping the sale to go through. There are some risks associated with selling your home yourself. Here are some thing to consider before you pass on getting real estate representation for your sale. 

1. Your market is more limited.

You can only post a "for sale by owner" listing on some websites, and you might not be able to advertise in publications at all. Your listing won't be part of the selling inventory for any real estate group, which can hurt its visibility to potential buyers. You also have to advertise on sites that are less reputable, which can drum up interest in your home from unqualified buyers. You'll get more low-ball offers, and you may even have people asking if they can buy your home on rent-to-own agreement or with owner financing. Those agreements can be risky if you are not sure how to protect your property.

2. Other agents may not want to show your home to looking clients.

Buyer's agents get a portion of the seller's commission when they negotiate a sale between you and the new owners. If you are selling without an agent, buyer's agents may not want to show your home to clients because they fear they will not get a worthwhile commission for the work they will do in helping the sale to work. Since many qualified buyers work with a buyer's agent, you may not want to pass on all the potential offers you could get. 

3. You may have trouble pricing your home accurately.

This is a big problem with selling by owner. Agents can help to price your home accurately and competitively for the area in which you live. Many people underestimate or overestimate the value of the home. If you underestimate, you lose thousands in equity on the sale. If you overestimate, you price the home out of the market, and people won't come to look at the house you're trying to sell. 

4. Your sale won't look as clean.

Part of the perks of using an agent is getting nice pictures for your home sale. The home is staged, clean, and well photographed. Poor photos deter buyers who look at your listing online. You also may not know which features to market for your property that buyers in the area are looking for. 

5. You can have trouble negotiating a fair deal.

If you do find an interested buyer, how do you negotiate the final price? You have to work out the price between yourselves, which can feel awkward, especially if there is a large gap between the offer and what you want. You also will need to see a lawyer to work out a purchase agreement, which can be tricky as well. You can easily overlook smaller details of the sale agreement, such as:

  • whether or not the appliances stay as a part of the deal
  • if the light fixtures and window treatments stay
  • who is paying for closing costs
  • whether or not the inspection will void the sale agreement
  • how much earnest money should be put down
  • what types of financing are acceptable
  • whether or not there's a home warranty

Your real estate agent also handles the legal side of the agreement, working with the attorney so you don't have to. They are usually worth their commission rate. To learn more about working with a real estate agent, check out websites like ListingBidder.com.

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23 April 2018

Choosing Beautiful Real Estate

I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.